Concur Technologies Inc. (CNQR, Financial) filed Quarterly Report for the period ended 2009-03-31.
Concur Technologies Inc. is the world's leading provider of on-demand Corporate Expense Management services. Concur's end-to-end corporate travel and expense management service seamlessly unites online travel booking with automated expense reporting controlling spend before it occurs while streamlining travel procurement and employee reimbursement. Concur's services also automate the process of managing vendor payments and employee check requests eliminating paper optimizing supplier relations and providing enhanced visibility. Concur's robust services help companies enforce policies and monitor vendor compliance delivering unprecedented control and valuable insight. Concur's suite of on-demand services reach millions of employees across thousands of organizations around the world streamlining business processes reducing operating costs improving internal controls and providing enhanced visibility and actionable expense analysis. Concur Technologies Inc. has a market cap of $1.37 billion; its shares were traded at around $28.22 with a P/E ratio of 52.2 and P/S ratio of 6.3. Concur Technologies Inc. had an annual average earning growth of 61.5% over the past 5 years.
Subscription revenues increased 15.7%, or $8.0 million, for the three months ended March 31, 2009, and 18.5%, or $18.0 million, for the six months ended March 31, 2009, compared to the same periods in 2008. The increase was primarily due to the increased number of customers for our subscription services. The growth in customers reflects increased market demand for our subscription services and high rates of retention of existing subscription customers. We believe this demand reflects the markets growing awareness of our on-demand Employee Spend Management Solutions and the increasing acceptance of outsourced services, driven in part by limited information technology capital budgets.
Cost of operations expenses as a percentage of total revenues decreased to 30.5% for the three and six months ended March 31, 2009, compared to 33.2% and 32.8% for the same periods in 2008. Cost of operations expenses increased by 6.2%, or $1.1 million, for the three months ended March 31, 2009, and 8.9%, or $3.0 million, for the six months ended March 31, 2009, compared to the same periods in 2008. Total salaries and related expenses increased by 2.5%, or $0.2 million, for the three months ended March 31, 2009, and 2.5%, or $0.5 million, for the six months ended March 31, 2009, compared to the same periods in 2008. Depreciation, facilities, allocated overhead costs, and other increased by 12.0%, or $0.4 million, for the three months ended March 31, 2009, and 16.7%, or $1.1 million, for the six months ended March 31, 2009, compared to the same periods in 2008. Initial costs that we incur in connection with our subscription services increased by 9.9%, or $0.4 million, for the three months ended March 31, 2009, and 14.3%, or $1.1 million, for the six months ended March 31, 2009, compared to the same periods in 2008. These increases were primarily due to organic growth.
Sales and marketing expenses as a percentage of total revenues increased to 28.7% and 29.2% for the three and six months ended March 31, 2009, compared to 26.0% and 26.3% for the same periods in 2008. Sales and marketing expenses increased by 27.5%, or $3.8 million, for the three months ended March 31, 2009, and 30.4%, or $8.2 million, for the six months ended March 31, 2009, compared to the same periods 2008. Total salaries and related expenses increased by 24.9%, or $2.6 million, for the three months ended March 31, 2009, and 31.0%, or $5.9 million, for the six months ended March 31, 2009, compared to the same periods 2008. Initial costs that we incur in connection with our subscription services increased by 91.9%, or $1.2 million, for the three months ended March 31, 2009, and 71.4%, or $2.0 million, for the six months ended March 31, 2009, compared to the same periods in 2008. These increases were primarily attributable to an increase in sales personnel and marketing programs.
Systems development and programming costs as a percentage of total revenues decreased to 10.0% and 10.3% for the three and six months ended March 31, 2009, compared to 10.9% and 11.5% for the same periods in 2008. This decrease reflects our higher revenues compared to relatively stable expenses in this area. Systems development and programming costs increased 5.4%, or $0.3 million, for the three months ended March 31, 2009, and 4.8%, or $0.6 million, for the six months ended March 31, 2009, compared to the same periods in 2008.
General and administrative expenses as a percentage of total revenues decreased to 11.0% and 11.6% for the three and six months ended March 31, 2009, compared to 15.4% and 14.7% for the same periods in 2008. General and administrative expense decreased by 17.8%, or $1.5 million, for the three months ended March 31, 2009, and 7.4%, or $1.1 million, for the six months ended March 31, 2009, compared to the same periods 2008. Total salaries and related expenses decreased by 8.3%, or $0.4 million, for the three months ended March 31, 2009. Total salaries and related expenses increased by 8.2%, or $0.7 million, for the six months ended March 31, 2009. Depreciation, facilities, allocated overhead costs, professional fees, and other decreased by 26.8%, or $0.9 million, for the three months ended March 31, 2009, and 22.4%, or $1.4 million, for the six months ended March 31, 2009, compared to the same periods 2008. This decrease was driven by a $0.9 million non-recurring adjustment that was made during the second quarter of 2008 to record additional state and local taxes payable.
Read the The complete ReportCNQR is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
Concur Technologies Inc. is the world's leading provider of on-demand Corporate Expense Management services. Concur's end-to-end corporate travel and expense management service seamlessly unites online travel booking with automated expense reporting controlling spend before it occurs while streamlining travel procurement and employee reimbursement. Concur's services also automate the process of managing vendor payments and employee check requests eliminating paper optimizing supplier relations and providing enhanced visibility. Concur's robust services help companies enforce policies and monitor vendor compliance delivering unprecedented control and valuable insight. Concur's suite of on-demand services reach millions of employees across thousands of organizations around the world streamlining business processes reducing operating costs improving internal controls and providing enhanced visibility and actionable expense analysis. Concur Technologies Inc. has a market cap of $1.37 billion; its shares were traded at around $28.22 with a P/E ratio of 52.2 and P/S ratio of 6.3. Concur Technologies Inc. had an annual average earning growth of 61.5% over the past 5 years.
Highlight of Business Operations:
We generate our revenues predominantly from the delivery of subscription services, and to a much lesser degree from consulting services and other services, which includes the sale of software licenses. Subscription revenues as a percentage of total revenues increased to 94.9% and 95.7% for the three and six months ended March 31, 2009, compared to 94.7% and 94.5% for 2008. This reflects our customers continued shift toward the purchase of our services as subscription services rather than software licenses. Our subscription services revenues are recognized over the time period we provide our services to customers, in contrast to license revenues, which typically are recognized upon software delivery to the customer.Subscription revenues increased 15.7%, or $8.0 million, for the three months ended March 31, 2009, and 18.5%, or $18.0 million, for the six months ended March 31, 2009, compared to the same periods in 2008. The increase was primarily due to the increased number of customers for our subscription services. The growth in customers reflects increased market demand for our subscription services and high rates of retention of existing subscription customers. We believe this demand reflects the markets growing awareness of our on-demand Employee Spend Management Solutions and the increasing acceptance of outsourced services, driven in part by limited information technology capital budgets.
Cost of operations expenses as a percentage of total revenues decreased to 30.5% for the three and six months ended March 31, 2009, compared to 33.2% and 32.8% for the same periods in 2008. Cost of operations expenses increased by 6.2%, or $1.1 million, for the three months ended March 31, 2009, and 8.9%, or $3.0 million, for the six months ended March 31, 2009, compared to the same periods in 2008. Total salaries and related expenses increased by 2.5%, or $0.2 million, for the three months ended March 31, 2009, and 2.5%, or $0.5 million, for the six months ended March 31, 2009, compared to the same periods in 2008. Depreciation, facilities, allocated overhead costs, and other increased by 12.0%, or $0.4 million, for the three months ended March 31, 2009, and 16.7%, or $1.1 million, for the six months ended March 31, 2009, compared to the same periods in 2008. Initial costs that we incur in connection with our subscription services increased by 9.9%, or $0.4 million, for the three months ended March 31, 2009, and 14.3%, or $1.1 million, for the six months ended March 31, 2009, compared to the same periods in 2008. These increases were primarily due to organic growth.
Sales and marketing expenses as a percentage of total revenues increased to 28.7% and 29.2% for the three and six months ended March 31, 2009, compared to 26.0% and 26.3% for the same periods in 2008. Sales and marketing expenses increased by 27.5%, or $3.8 million, for the three months ended March 31, 2009, and 30.4%, or $8.2 million, for the six months ended March 31, 2009, compared to the same periods 2008. Total salaries and related expenses increased by 24.9%, or $2.6 million, for the three months ended March 31, 2009, and 31.0%, or $5.9 million, for the six months ended March 31, 2009, compared to the same periods 2008. Initial costs that we incur in connection with our subscription services increased by 91.9%, or $1.2 million, for the three months ended March 31, 2009, and 71.4%, or $2.0 million, for the six months ended March 31, 2009, compared to the same periods in 2008. These increases were primarily attributable to an increase in sales personnel and marketing programs.
Systems development and programming costs as a percentage of total revenues decreased to 10.0% and 10.3% for the three and six months ended March 31, 2009, compared to 10.9% and 11.5% for the same periods in 2008. This decrease reflects our higher revenues compared to relatively stable expenses in this area. Systems development and programming costs increased 5.4%, or $0.3 million, for the three months ended March 31, 2009, and 4.8%, or $0.6 million, for the six months ended March 31, 2009, compared to the same periods in 2008.
General and administrative expenses as a percentage of total revenues decreased to 11.0% and 11.6% for the three and six months ended March 31, 2009, compared to 15.4% and 14.7% for the same periods in 2008. General and administrative expense decreased by 17.8%, or $1.5 million, for the three months ended March 31, 2009, and 7.4%, or $1.1 million, for the six months ended March 31, 2009, compared to the same periods 2008. Total salaries and related expenses decreased by 8.3%, or $0.4 million, for the three months ended March 31, 2009. Total salaries and related expenses increased by 8.2%, or $0.7 million, for the six months ended March 31, 2009. Depreciation, facilities, allocated overhead costs, professional fees, and other decreased by 26.8%, or $0.9 million, for the three months ended March 31, 2009, and 22.4%, or $1.4 million, for the six months ended March 31, 2009, compared to the same periods 2008. This decrease was driven by a $0.9 million non-recurring adjustment that was made during the second quarter of 2008 to record additional state and local taxes payable.
Read the The complete ReportCNQR is in the portfolios of Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
