If you missed the earnings call here are some of what I think are the highlights if I got it right:
They confirmed next fiscal year will be at least 1/2 billion in revenue.
1.4 billion dollar contract with GSA is signed! (but revenue will not start until October of 2013 which is 1st qtr of FY 2014). It looks like they will stay nicely profitable while they incur the costs for the GSA contract until they start getting any revenue from the contract. Their business model is that they have costs long before the first bill goes out the door and then bill monthly. That would mean that profits should jump in a few years. The contract will not dilute margins.
They tripled the current addressable market by successfully proving two new markets that are equal to their current Managed Travel market. Unmanaged Travel (SMB- small business) and Public Sector (governments).
They expect to deliver new streams of revenue as their role in the travel supply chain increases. Partners ARE NOW BUILDING a new travel T&E supply chain with Open Booking. The partners backing this include Google, Salesforce.com, many travel suppliers looking to get rid of the high costs of GDS's and others in the supply chain eating up funds from travel suppliers.
"its our expectation that we will not see the first dollar of revenue from this award until fiscal 2014 and no appreciable revenue stream until fiscal 2015. We expect to see a meaningful stream of revenue hit our P&L by fiscal 2016 and then continue to build from that point."
"Carlson Wagonlit also bid on the GSA contract. CWT was a provider to the U.S. government over the course of the ETS1 contract. And while I can't speak to the nature of their bid or the suitability of their services, it's important that you know that CWT filed a protest against the GSA for the sole-source award to Concur. The protest has a defined 100-day process for resolution and is expected to be resolved by the end of September."
Outlook will not be that great if CWT win the protest.
air88888 My quote: "1.4 billion dollar contract with GSA is signed! (but revenue will not start until October of 2013 which is 1st qtr of FY 2014)."
Your quote (agrees with what I said): "its our expectation that we will not see the first dollar of revenue from this award until fiscal 2014 and no appreciable revenue stream until fiscal 2015."
We are saying the same thing and that is that revenue will start in October of 2013 which is Concur's 1st quarter of FY 2014. My point is that the first trickle of dollars from the 1.4 billion dollar contract revenue is a little more then a year away. Not that far. By then Concur is also expected to be able to generate more revenue for each user with Open Bookings "Big Data".