Total revenue was $84.6 million for the second quarter of fiscal 2011, up 16% compared to the year-ago quarter, and up 5% sequentially.

Net loss was $2.6 million, or $0.05 per share, for the second quarter of fiscal 2011, compared to net income of $6.7 million, or $0.13 per share, for a year-ago quarter. The loss for the quarter was largely driven by the accounting impacts of the TripIt acquisition.

Non-GAAP pre-tax income was $13.6 million, or $0.25 per share, for the second quarter of fiscal 2011, compared to $16.2 million, or $0.31 per share, for the year-ago quarter. Please refer to “About Concur’s Non-GAAP Financial Measures” below for an explanation of our non-GAAP financial measures used in this press release.

Non-GAAP operating margin was 18% for the second quarter of fiscal 2011, compared to 23% for the year-ago quarter.

Cash flow from operations was ahead of expectations at $16.0 million for the second quarter of fiscal 2011.

Concur acquired TripIt – the market leader in mobile trip management. This acquisition extends Concur’s reach to the business traveler audience, fundamentally supports and extends the Concur Connect Platform and provides new revenue streams for Concur beyond the traditional subscription revenue model.

Concur announced the launch of Concur Japan, which includes investment from SunBridge Corporation, the firm responsible for the Salesforce.com Japan joint venture, and Marc Benioff, acting as a minority direct investor. This joint venture positions Concur to meet the demands of the increasing number of corporations in Japan and throughout Asia that are turning to cloud computing and mobile solutions to help them control expenses.

Concur announced the launch of Concur India – a move that perfectly aligns with the company’s strategic initiatives to expand its existing customer base while also expanding into new geographic markets.

Concur announced a strategic alliance with privately held Cleartrip, India’s leading online travel portal, which includes a $40 million strategic investment for a minority interest in Cleartrip.

Concur hosted more than 1,350 attendees at Fusion – the company’s premier client event – in Las Vegas, Nevada. Attendees at this year’s sold-out conference took advantage of opportunities to consult with Concur product experts, network with their peers, and learn about Concur’s solutions. Next year’s Fusion event will take place May 8-11, 2012 at the Hilton Bonnet Creek in Orlando, Florida.

Concur launched Concur^® Breeze – the online and mobile expense reporting service designed specifically for small businesses – in the U.K. to help SMBs in that region streamline the entire expense management process by automatically creating expense claims using electronic data imported directly from both personal and corporate credit card charges.

Concur added new mobile features to Concur Breeze giving small businesses one app that takes care of all their expense reporting right from a smartphone, with no PC or browser required.

Concur announced that clients can now automatically receive detailed folio data and e-receipts from participating La Quinta hotels – downloaded directly into Concur users’ expense reports. Through Concur^® Connect – the global program that connects suppliers from around the world and provides clients exclusive access to services otherwise unavailable though traditional travel programs – La Quinta joins a growing list of travel suppliers that not only feed complete electronic folio data in the form of e-receipts directly into Concur, but also provide Concur clients with broad access to travel inventory.

Concur announced the availability of a new set of open APIs (application programming interfaces) that enable customers to seamlessly integrate with and extend the capabilities of Concur’s products and services. These newest components of the Concur Connect Platform – an open, standards-based framework that allows customers, partners, and third-party developers to connect to and extend Concur’s travel and expense management data and capabilities – enable clients to develop additional functionality to meet their organization’s specific travel and expense management needs.

Concur announced that its travel and expense mobile app for Android™, BlackBerry^®, iPhone and iPad users now features enhanced language support including U.S. and U.K. English, French, French Canadian, German, Italian and Spanish, along with enhanced travel and expense functionality and new third-party mobile applications – all in a sleek interface designed to take advantage of the native environment of many popular mobile platforms.

TripIt announced the release of its free iPad application in the iTunes store. Now, travelers can access all their trip reservations in one place on the top-ranking tablet – including air, hotel, entertainment and more – plus an exclusive master map feature for iPad users that captures the entire trip with individual maps provided on each page of the itinerary.

TripIt was awarded the 2011 Webby for Travel – Mobile & Applications at the 15^th Annual Webby Awards, which celebrates the best of the Internet.

Gartner, Inc. has ranked Concur as the largest SaaS provider within the ERP market based on total software revenue for 2010. Additionally, Gartner, Inc. has ranked Concur as one of the top ten market share leaders in ERP Software Worldwide based on total software revenue for 2010. (Gartner, Inc., Market Share Analysis: ERP Software, Worldwide 2010, Chris Pang, April 25, 2011).

Concur expects revenue for the third quarter of fiscal 2011 to grow approximately 18% year-over-year from the third quarter of fiscal 2010, and expects the fiscal 2011 revenue growth rate to be above the fiscal 2010 revenue growth rate.

For the third quarter of fiscal 2011, Concur expects non-GAAP pre-tax income per share to be $0.29.

Concur expects fiscal 2011 non-GAAP operating margin to be 21.5% or more for the year as a whole.

Concur expects cash flows from operations in fiscal 2011 to be between $84 million and $87 million, excluding one-time acquisition and other related costs, and capital expenditures to be between $25 million and $27 million.

Revenues

Expenses (1):

Cost of operations

Sales and marketing

Systems development and programming

General and administrative

Revaluation of contingent consideration

Amortization of intangible assets

Total expenses

Operating income (loss)

Other income (expense):

Interest income

Interest expense

Loss from equity investments

Other, net

Total other expense, net

Income (loss) before income tax

Income tax expense (benefit)

Consolidated net income (loss)

Less: Net loss attributable to noncontrolling interest

Net income (loss) attributable to Concur

Net income (loss) per share available to Concur common stockholders:

Basic

Diluted

Weighted average shares used in computing net income per share:

Basic

Diluted

(1)     Includes share-based compensation as follows:

Cost of operations

Sales and marketing

Systems development and programming

General and administrative

Total share-based compensation

Assets

Current assets:

Cash and cash equivalents

Short-term investments

Restricted cash

Accounts receivable, net of allowance of $1,943 and $2,374

Deferred tax assets

Deferred costs and other assets

Total current assets

Non-current assets:

Property and equipment, net

Investments

Deferred costs and other assets

Intangible assets, net

Deferred tax assets

Goodwill

Total assets

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

Customer funding liabilities

Accrued compensation

Acquisition-related liabilities

Other accrued expenses and liabilities

Deferred revenues

Total current liabilities

Non-current liabilities:

Senior convertible notes, net

Deferred rent and other long-term liabilities

Deferred revenues

Acquisition-related contingent consideration

Tax liability

Total liabilities

Commitments and contingencies

Stockholders’ equity:

Convertible preferred stock, par value $0.001 per share
Authorized shares: 5,000; No shares issued or outstanding

Common stock, $0.001 par value per share
Authorized shares: 195,000
Shares issued and outstanding: 53,913 and 52,379

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total Concur stockholders’ equity

Noncontrolling interests

Total equity

Total liabilities and stockholders’ equity

Operating activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Amortization of intangible assets

Depreciation

Accretion of discount and issuance costs on notes, net

Net recovery of sales allowances

Share-based compensation

Gain on revaluation of contingent consideration

Deferred income taxes

Excess tax benefits from share-based compensation

Loss from equity method investments

Changes in operating assets and liabilities:

Accounts receivable

Deferred costs and other assets

Accounts payable

Accrued liabilities

Deferred revenues

Net cash provided by operating activities

Investing activities:

Purchases of investments

Maturities of investments

Increase (decrease) in customer funding liabilities, net of changes in restricted cash

Investments in unconsolidated affiliates

Investments in consolidated joint venture by noncontrolling interest

Purchases of property and equipment

Payments for acquisitions, net of cash acquired

Net cash provided by investing activities

Financing activities:

Equity issuance costs

Net proceeds from share-based equity award activity

Proceeds from employee stock purchase plan activity

Tax withholding on stock awards

Excess tax benefits from share-based compensation

Repayments on capital leases

Net cash used in financing activities

Effect of foreign currency exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Operating income (loss):

Operating income (loss)

Income (loss) from operations as a % of total revenue (Operating Margin)

Add back:

Share-based compensation

Acquisition and other related costs

Revaluation of contingent consideration

Contingent consideration (included in compensation expense)

Non-controlling interest joint venture

Amortization of intangible assets

Non-GAAP operating income

Non-GAAP operating income as a % of total revenue (Non-GAAP Operating Margin)

Net income:

Net income (loss) attributable to Concur

Add back:

Share-based compensation

Acquisition and other related costs

Revaluation of contingent consideration

Contingent consideration (included in compensation expense)

Loss from equity method investments

Amortization of intangible assets

Accretion of discount on senior convertible notes

Income tax expense (benefit)

Non-GAAP pre-tax income attributable to Concur

Diluted net income (loss) per share:

Diluted net income (loss) per share attributable to common shareholders

Add back:

Share-based compensation

Acquisition and other related costs

Revaluation of contingent consideration

Contingent consideration (included in compensation expense)

Loss from equity method investments

Amortization of intangible assets

Accretion of discount on senior convertible notes

Income tax expense (benefit)

Non-GAAP diluted pre-tax income per share

Shares used in calculation GAAP and non-GAAP income (loss) per share:

Basic

Diluted

Share-based compensation. Concur’s non-GAAP financial measures exclude share-based compensation, which consist of expenses for stock options and restricted stock units (“RSU”). Concur excludes these expenses from its non-GAAP financial measures primarily because they are non-cash expenses that it does not consider part of ongoing operating results when assessing the performance of our business, and the exclusion of these expenses facilitates the comparison of results and business outlook for future periods with results for prior periods.

Acquisition and other related costs. New authoritative guidance on business combinations requires us to record in the income statement, certain items that at the time of an acquisition would have been recorded to goodwill under the old authoritative guidance. We have excluded the effect of acquisition-related expenses from certain non-GAAP financial measures in order to facilitate the comparison of our business outlook for future periods with results from prior periods when such expenses were recorded to Goodwill. We also believe it is useful for investors to understand the effects of these items on our operations. Acquisition and other related costs include transaction fees, due diligence costs, travel expenses, and other one-time direct costs associated with strategic activity in which we may deploy capital.

Revaluation of contingent consideration. New authoritative guidance on business combinations requires contingent consideration to be recorded at fair value on the acquisition date. The new authoritative guidance also requires that changes in the fair value of the contingent consideration subsequent to the acquisition date be recorded in our statements of income. Under the old authoritative guidance contingent consideration would have been included as a component of deal consideration based on the actual amount paid, if any, when the contingency was resolved. Concur’s non-GAAP financial measures exclude the revaluation of contingent consideration, which is the change in fair value of the liability-classified acquisition-related contingent consideration. Concur excludes the unrealized gains or losses from the re-measurement of the contingent consideration from its non-GAAP financial measures in order to facilitate the comparison of our business outlook for future periods with results from prior periods when contingent consideration was recorded to Goodwill. We also believe it is useful for investors to understand the effects of these items on our operations

Contingent consideration (included in compensation expense). Concur’s non-GAAP financial measures exclude contingent consideration included in compensation expense which relates to the potential cash payment to certain TripIt employees whose right to receive such payment is forfeited if they terminate their employment. The contingent cash payment that these employees are entitled to receive is part of the consideration that all TripIt shareholders received from Concur in exchange for their TripIt shares. As receipt of the contingent payment is subject to continued employment, GAAP requires that it be accounted for as compensation expense. Concur excludes this item from its non-GAAP financial measures primarily because it is a component of the deal consideration that it does not consider part of ongoing operating results when assessing the performance of our business, and the exclusion of these expenses facilitates the comparison of results and business outlook for future periods with results for prior periods.

Noncontrolling interest joint venture. Noncontrolling interest joint venture includes income or loss from operations due to our joint venture partner and is excluded from the calculation of non-GAAP operating income because it is unrelated to our ownership in the venture.

Loss from equity method investments. For investments under the equity method, Concur recognizes its share of the earnings or losses of an investee and adjusts the carrying amount of an investment for its share of the earnings or losses of the investee after the date of investments. Concur’s non-GAAP financial measures excluded the earnings or losses from GAAP income because it is unrelated to our ongoing operations and is significantly impacted by factors outside our direct control.

Amortization of intangible assets. In accordance with GAAP, operating expenses include amortization of software and other technology assets, other purchased intangible assets such as customer lists and covenants not to compete. Concur excludes these items from its non-GAAP financial measures because they are non-cash expenses that Concur does not consider part of ongoing operating results when

assessing the performance of our business, and Concur believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry, which have their own unique acquisition histories.

Accretion of discount on senior convertible notes. In accordance with GAAP, interest expense on the senior convertible notes includes the accretion of the discount, which is a non-cash expense that Concur does not consider part of ongoing operating results when assessing the performance of our business.

Income tax expense (benefit). Concur excludes this expense from certain non-GAAP financial measures primarily because it is largely a non-cash expense that Concur does not consider a meaningful component of our operating results when assessing the performance of our business, and the exclusion of this expense (benefit) facilitates the comparison of our business outlook for future periods with results for prior periods, which did not include income tax expense (benefit).

Concur’s management uses non-GAAP operating income (including the derived non-GAAP operating margin), non-GAAP pre-tax income and non-GAAP diluted pre-tax income per share in internal reports used by management in monitoring and making decisions regarding Concur’s business. For example, these measures are used in monthly financial reports prepared for management, and in quarterly reports to Concur’s Board of Directors. Concur also uses non-GAAP pre-tax diluted income per share as a measure to determine executive cash incentive compensation.

Because share-based compensation, amortization of intangible assets, accretion of discount on senior convertible notes and income tax expense (benefit) are largely non-cash in nature, Concur believes that non-GAAP operating income, non-GAAP pre-tax income and non-GAAP diluted pre-tax income per share provide a more focused view of the operations of its business. In particular, share-based compensation amounts are difficult to forecast, because the magnitude of the charges depends upon the volume and timing of stock option and RSU grants – which are unpredictable and can vary dramatically from period to period – and external factors such as interest rates and the trading price and volatility of Concur’s common stock. Excluding these amounts improves comparability of the performance of the business across periods.

The principal limitation of Concur’s non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded. In addition, non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which charges are excluded from the non-GAAP financial measures.

To mitigate this limitation, Concur presents its non-GAAP financial measures in connection with its GAAP results, and recommends that investors do not give undue weight to its non-GAAP financial measures. Concur notes that the dilutive effect of outstanding stock options is reflected in fully-diluted shares outstanding used in calculating GAAP net income per share and non-GAAP diluted pre-tax income per share.