Diligent Board Member Services has posted another stellar quarter of revenue growth for the three months to Sept. 30, marked by an increase in adjusted earnings margins to 40 percent 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 1,615 licenced public and private companies, almost double the number using the product a year earlier.
Quarterly revenue of US$11.8 million was up 145 percent year on year, while cumulative sales for the nine months of the current financial year of US$45.9 million were up 133 percent.
Operating cash flows of US$5.7 million were up 418 percent 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 said, 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 percent, rising to 15 percent by September last year, and 40 percent 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."