Diligent Board Member Services Announces Record-Breaking Quarter
NEW YORK, OCTOBER 24, 2012 — Diligent Board Member Services (NZX.com:DIL) (www.boardbooks.com) recently closed another consecutive record- breaking quarter, producing revenue of $US 11.8 million and recording net new sales of $US 6.4 million for the third quarter of 2012. Drivers of customer demand for Diligent Boardbooks® include iPad adoption and organizations making a continued move to the Software-as-a-Service (SaaS) model. These factors have helped Diligent deliver on dramatic top-line growth and profitability. Cumulative sales increased by 133%, from $US 19.7 million to $US 45.9 million from end of third quarter 2011 to end of third quarter 2012, and year to date revenue increased by 163%, from $US 11.5 million to $US 30.2 million.
During the third quarter Diligent signed a total of 168 net new Client Agreements compared to 170 in the same quarter last year. Diligent now serves 1,615 public and private companies, encompassing more than 2,330 boards and 46,000 individual users worldwide on Diligent Boardbooks. The client roster includes 242 Fortune 1000 companies and 33% of companies on the FTSE 100 Index. A sustained growth surge has solidified Diligent’s position as the provider of the world’s most widely used secure board portal.
Client upgrades continue to be a valuable source of new sales as well as an important indicator of customer satisfaction with the Diligent Boardbooks product and service. In the third quarter of 2012, client upgrades totaled $US 2.1 million, which is an increase of 205% over Client Upgrades in the third quarter of 2011, a new record. In addition to new sales, another critical factor driving the continued strong revenue growth at Diligent is ongoing client retention rates. Diligent’s trailing 12-month client retention rate of 97% is among the best in class for Software-as-a-Service model companies.
Diligent’s senior management continues to deliver on both profitability and revenue growth. This exceptional accomplishment is a testament to the company’s commitment to execution and to delivering a superior customer experience. Its operating margins and cash flow have continued to improve throughout 2012, as evidenced by a cash position at the end of the third quarter that increased by $US 8.3 million, to $US 25.6 million. These rapidly improving financial metrics are an important validation of the internal leverage in Diligent’s Software-as-a-Service business model. These favorable trends also suggest the likelihood of continued improvement as the company builds its business and scales its operations.
“Our easy-to-use yet amazingly secure and mobile Diligent Boardbooks iPad app, combined with our commitment to unlimited concierge-level training and support, has given Diligent Boardbooks a distinct competitive advantage over other board portal products,” said Alex Sodi, president and CEO of Diligent Board Member Services. “We provide the largest board portal in the world, serving more boards and users than any other provider in this category.”
For the full Quarterly Update for third quarter 2012 visit www.boardbooks.com/nz-shareholders.