Concur Technologies (CNQR - Analyst Report) reported fourth-quarter fiscal 2013 GAAP net loss of $7.5 million or 13 cents per share, falling short of the Zacks Consensus Estimate of earnings of 5 cents per share. In the prior-year quarter, the company had reported a net loss of $8.2 million or 15 cents per share. The company reported pre-tax loss of $7.3 million, compared with a pre-tax loss of $2.7 million in the year-ago quarter.
On a non-GAAP basis, the company’s pre-tax income came in at $23.1 million or 39 cents per share, which was almost flat on a year-over-year basis.
Growth in the company’s core business primarily drove the non-GAAP earnings. Moreover, Concur signed more than 4,000 new customers in fiscal 2013, an increase of over 40% year over year. The growth was primarily attributable to the company’s ongoing “Perfect Trip” initiatives, which led to expansion of several innovative services including TripLink, Concur App Center, and ExpenseIt along with upgradation of its TripIt service. The company also benefited from the recent acquisitions of conTgo, TRX and GDSX, along with a better-than-expected momentum in its federal government business.
Concur reported total revenue of $156.9 million, up 33.1% year over year and 13.1% sequentially, driven by increased transaction volumes and addition of new services for existing customers. Additionally, strong performances from the SMB () market segment and the Enterprise market segment contributed to top-line growth. Revenues beat the Zacks Consensus Estimate of $152 million by 3.2%.
Income and Expenses
Non-GAAP operating income was $25.6 million compared with $24.6 million in the prior-year quarter. However, margins fell to 16.6% from 20.9% in the prior-year quarter.
Non-GAAP sales and marketing expenses were $53.5 million, up 34.7% year over year from $39.7 million, while general and administration expense was $16.8 million versus $13.6 million in the prior-year quarter.
Balance Sheet and Cash Flow
Cash and cash equivalents were $301.7 million at the quarter-end, compared with $302.3 million at the end of Sep 30, 2012. The company reported total equity of $818.3 million, compared with $741.1 million at the end of prior-year quarter.
The cash flow from operating activities has declined to $26.3 from $37.0 million in the prior-year quarter.
Along with the earnings release, management provided guidance for the first quarter and for entire fiscal 2014. Revenues for the first quarter of fiscal 2014 are expected to grow approximately 27% year over year.
For the first quarter of 2014, Concur expects non-GAAP pre-tax income per share to be 19 cents. The figure excludes the effects of non-cash related items including stock-based compensation expenses, amortization of intangible assets, and the accretion of the discount on the senior convertible notes. The non-cash accounting implications and cash fees along with expenses of acquisitions and other related activities are also excluded from this figure.
Concur expects revenues for full fiscal 2014 to grow approximately 26% year over year. Fiscal 2014 non-GAAP pretax income per share is expected to be at least 93 cents per share, while non-GAAP operating margin is expected to be in the range of 10%-14%.
Cash flow from operations in fiscal 2014 is expected to be at least $70 million. This figure does not include the tax benefits from share-based compensation and acquisition. Capital expenditures for the year are likely to nudge up and range from 8% to 9% of fiscal 2014 revenues.
Concur currently has a Zacks Rank #3 (Hold). However, some other companies that can be considered at the moment include Bottomline Technologies (de), Inc. (EPAY - Snapshot Report),Manhattan Associates, Inc. (MANH - Snapshot Report) and PROS Holdings, Inc. (PRO - Snapshot Report). All three carry a Zacks Rank #1 (Strong Buy).