Diligent Fourth-Quarter and Full-Year 2012 Update Shows Record Annual Revenues, New Sales and Cash Balances
NEW YORK, JANUARY 22, 2013 — Diligent Board Member Services (NZX: DIL) (www.boardbooks.com) reported its results for the fourth quarter and 2012 full year, ended December 31, 2012, with record annual revenues, new sales and cash balances.
Diligent produced revenue of $US 13.6 million for the fourth quarter 2012 and totaled $US 43.7 million for the full year 2012, an increase of 143% compared to the prior year. New sales for the fourth quarter of 2012 were $US 6.4 million, increasing total new sales for fiscal year 2012 to $US 26.3 million.
It was a record year for new sales with a 66% increase over the $US 15.9 million of new sales for fiscal year 2011. Of note, the Asia/Pacific region experienced exceptional growth during the quarter with new sales increasing 398% compared to fourth quarter 2011. Client upgrades, a valuable source of new sales, totaled $US 1.8 million for the fourth quarter of 2012 and $US 6.8 million for full year 2012. Cumulative sales materially increased from $US 25.7 million at end 2011 to $US 52.3 million at end 2012, an increase of 103%.
Alex Sodi, Diligent’s president and CEO, said, “We are extremely pleased with our results for 2012. Revenue growth was driven by consistently increasing demand for the Diligent Boardbooks secure iPad app, and the success of our recurring revenue model. Revenue growth was also driven by our client retention rate of 97% for full year 2012, among the best for software-as-a-service companies.”
“These significant new business milestones in the fourth quarter and full year 2012 emphasize Diligent’s position as a market leader. We serve more boards and users than any other provider in the board portal category worldwide,” he added.
During the fourth quarter, Diligent signed a total of 193 net new client agreements compared to 203 in the same quarter last year. Net new client agreements for the full year 2012 were 782 compared to 570 for the full year 2011. Diligent now services 252 Fortune 1000 companies and 14% of NYSE listed companies, of which 36 were added in the fourth quarter 2012. Its clients include 1,808 public and private companies, with over 2,571 boards and almost 52,000 users worldwide.
Diligent’s operating margins and cash flow have continued to improve throughout 2012, as evidenced by a cash-flow position at the end of the fourth quarter that increased by $US 7.8 million to $US 33.4 million compared to $US 9.0 million at the end of the fiscal year 2011. In addition, Diligent’s Board of Directors declared a cash dividend of US$0.011 per share on its Series A Preferred Stock.
For the full Quarterly Update for fourth quarter 2012 visit: www.boardbooks.com/nz-shareholders.