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Diligent Board Member Services has posted another stellar quarter of revenue growth for the three months to September 30, marked by an increase in adjusted earnings margins to 40% for the first time.
The company's software for managing corporate governance information flows, known as Diligent Boardbooks, is taking off in the US, boasting more than 46,000 users, with its total of 1615 licenced public and private companies, almost double the number using the product a year earlier.
Quarterly revenue of $US11.8 million was up 145% year on year, while cumulative sales for the nine months of the current financial year of $US45.9 million were up 133%.
Operating cashflows of $US5.7 million were up 418% year on year. The company did not disclose an earnings figure for the quarter, releasing a set of presentation slides to the NZX.
"Gross margin and adjusted earnings before interest, tax and depreciation margins continue to expand as the business scales," the company says, demonstrating "the natural operating leverage in the Diligent business model".
Tables in the presentation show ebitda margins turned positive for the first time in the first quarter of the 2011-12 financial year, at 3%, rising to 15% by September last year and 40% in the most recent quarter.
"Management expects the positive trends and cash flow and improved balance sheet strength and flexibility to continue throughout 2012 and beyond.
"The company is well on the way to delivering another year of exceptional performance and outstanding value to its clients and shareholders in 2012."