Here’s the bad news. Concur, the Redmond maker of travel and entertainment expense management software, warned Wall Street this morning that it’s revenue growth for its fiscal second quarter won’t meet expectations.
Now, here’s the good news. The reason for that slump in growth is that Concur is booking new business at a rapid clip, so fast that it can’t implement its product fast enough for customers.
CEO Steve Singh noted in a press release:
“Driven by strength in both the public and private sectors, we experienced one of the best bookings performances in Concur’s history, with new bookings growing more than 100% over the second quarter last year. The strong bookings have resulted in longer implementation cycles in the short term, which impacts short-term revenue growth. We believe that fiscal year 2013 bookings growth may continue to outpace our previous expectations, and are confident that our implementation cycles will return to historical averages within the next few quarters. Accordingly, while we will announce our full financial results and updated full-year guidance in our regular quarterly earnings release, we expect revenue in the third quarter of fiscal 2013 to be at least $139 million, or approximately 23% growth over the prior year period.”
The company said that revenue growth would be 17.5 percent for the second quarter, which was down from the 19 percent previously projected. It plans to announce full earnings on May 1.
Wall Street doesn’t seem to mind the temporary blip. Shares of Concur are up more than three percent, on a day that the Nasdaq and Dow Jones Industrial Average are down.
A leading software-as-a-service business, Concur has been making a number of acquisitions and investments recently, in part through its new venture capital fund.