Diligent full-year revenue up 66%

Tuesday 22nd February 2011

Diligent Board Member Services reported a 66% rise in full year revenue to US$5 million, with the company saying it had growing brand recognition and high customer satisfaction.

The NZX-listed company reported new annualised licence fees of US$3.7 million in 2010, 55% higher than 2009, while total annualised licence fee income was 59% higher at US$10 million.

Drivers behind the sales growth included growing brand recognition of the Diligent Boardbooks web-based board reporting software, Diligent said today.

Customer confidence and satisfaction was high, while an Apple iPad compatible version of Diligent Boardbooks was introduced last September, and Boardbooks was accepted for iPad 1.0 into the Apple App Store in early January.

Diligent generates its income from subscription-based revenue that recurs each year and increases with each new licence agreement or upgrade.

The momentum that drove the increase in sales in 2010 was continuing in the current financial year, Diligent said.

Its success continued to be based on an easy-to-use system that allowed executives to efficiently manage communications with boards and to provide them with real-time access to board materials.

Diligent reported a profit after tax of US$2.1 million for 2010, after a loss of US$3.9 million in 2009.

In 2009 the profit result had included a US$4.3 million non-cash revaluation of a note relating to a loan to affiliate SSH. The carrying value of the loan had previously been reduced to reflect the estimated fair value of the company's shares owned by SSH and held as collateral for the loan.

Gross margins rose to 66.6% in 2010 compared to 56.3% in 2009, which Diligent said demonstrated the effects of greater scale and the inherent leverage in the software-as-a-service business model.

NZPA

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