Diligent continues sales drive in 3Q, upgrades drive revenue
BUSINESSDESK: Diligent Board Member Services, the software-as-a-service company for corporate governance, continued its rapid sales drive in the third quarter as revenue from client upgrades underpinned growth in the period.
Revenue surged 145% to $US11.8 million in the three months ended September 30, taking year-to-date sales to $US30.2 million, the New York-based, NZX-listed company says. Sales from client upgrades soared 205% to $US2.1 million and new sales advanced 29% to $US6.4 million.
"Client upgrades continue to be a valuable source of new sales as well as our principal indicator of customer satisfaction with the Diligent Boardbooks product and service," the company says.
"Diligent's management expects the positive trends in cashflow and improved balance sheet strength and flexibility to continue throughout 2012."
Diligent has gone from strength to strength in the past two years after cashing in on the increasing popularity of Apple Inc's iPad with its Boardbooks application. The firm has attracted almost a quarter of Fortune 1000 companies as customers and counts 1615 companies on its client base, with more than 2330 board and 46,000 users worldwide.
The NZX-listed stock has surged as high as $4.09 from just 7 cents a share in the depths of the global financial crisis in 2009. It fell 1.8% to $3.81 yesterday and has more than doubled this year.
Diligent said its cashflow position improved by $US8.6 million in the quarter, taking total cash to $US25.6 million as at September 30.
The firm continued to pull most of its sales growth in the Americas, though at a slower pace. New sales grew 5% to $US4.1 million out of the Americas, with revenue growth in Europe, the Middle East and Africa climbing 77% to $US1.6 million and Asia and Pacific more than tripling to $US750,000.