Total revenue was $113.2 million for the third quarter of fiscal 2012, up more than 26% compared to the year-ago quarter, and up more than 4% sequentially.

Non-GAAP pre-tax income was $19.2 million, or $0.34 per share, for the third quarter of fiscal 2012, compared to $16.0 million, or $0.29 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 18.9% for the third quarter of fiscal 2012, compared to 19.8% for the year-ago quarter.

GAAP cash flows from operations were ahead of our expectations at $25.1 million for the third quarter of fiscal 2012.

GAAP net income was $6.9 million, or $0.12 per share, for the third quarter of fiscal 2012, compared to GAAP net income of $2.3 million, or $0.04 per share, for the year-ago quarter.

Concur announced that its integrated travel and expense management solution has been selected to power the U.S. General Services Administration (GSA) program for managing online bookings, travel authorizations and voucher processing.

The Concur^® T&E Cloud, Concur^® Open Booking and Concur^® Big Data are all cornerstones of innovation driving The Perfect Trip™. Recent highlights supporting this traveler-centric vision include:

Marquee hotel and car rental companies – including Avis Budget Car Rental, Best Western International, Choice Hotels International, Inc., The Hertz Corporation, InterContinental Hotels Group, La Quinta Inns & Suites, Marriott International and Starwood Hotels & Resorts Worldwide, Inc. – announced support for Concur Open Booking.

Concur announced an agreement that will enable business travelers to purchase Gogo in-flight Internet sessions within the travel booking experience delivered through the Concur T&E Cloud.

TripIt Itinerator™ email parsing technology is now included inside Concur’s solutions, so that travelers and arrangers using Concur Travel can build a single consolidated itinerary combining traditional GDS and direct connect bookings with travel booked outside of Concur.

Travelers now have an easier way to find nearby restaurants or shops, upload photos, make changes to their itineraries from anywhere, and even access past trips on-the-go with the latest updates to TripIt for iPhone and iPad.

Employees can see their colleagues’ detailed itineraries and sync their own calendar with the office travel calendar now available in TripIt for Business.

Concur Open Booking – the corporate travel option that enables business travelers to book hotels and rental cars outside Concur Travel while still capturing and providing complete visibility into travel transaction and itinerary data – made its debut at the GBTA 2012 Convention in Boston. In conjunction with this initiative, and in support of the Open Travel Alliance hotel specification which is being driven by a broad coalition of Concur clients representing billions of dollars in travel spend, Concur also released an API that will enable suppliers to make their content available directly to Concur clients.

Cleartrip, India’s leading online travel portal, announced its intention to make its market-leading Indian hotel content available to Concur clients directly through Concur Travel.

Travelers in Germany can now compare air and rail pricing side-by-side, while still completing their purchase on the familiar Deutsche Bahn website.

Leveraging transaction data from over 18 million travelers, Concur and TripIt provide personalized hotel recommendations based on the traveler’s past trips and preferences in accordance with their company’s travel policy.

Concur announced the addition of invoice management to its mid-market suite of solutions.

Concur announced that the Concur Small Business edition now brings more ease to expense reporting with a new dashboard-like homepage and time-saving tips.

Gartner, Inc. has ranked Concur as the largest SaaS provider within the ERP market based on total software revenue for 2011. 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 2011 (Gartner, Inc., Market Share Analysis: ERP Software, Worldwide 2011, Chris Pang, April 24, 2012).

Concur expects revenue for the fourth quarter of fiscal 2012 to grow approximately 24% year-over-year from the fourth quarter of fiscal 2011.

Concur is maintaining expectations for fiscal 2012 revenue growth of approximately 26% year-over-year from fiscal 2011.

Concur now expects fiscal 2012 non-GAAP operating margin to be 19%, up from 18.5%, for the year as a whole.

For the fourth quarter of fiscal 2012, Concur expects non-GAAP pre-tax income per share to be $0.38. Non-GAAP pre-tax income excludes the effects of non-cash related items such as stock-based compensation expenses, amortization of intangible assets, and the accretion of the discount on our senior convertible notes. It also excludes the non-cash accounting implications and cash fees and expenses of acquisitions and other related strategic activity in which the Company may deploy capital.

Concur raises expectations for fiscal 2012 non-GAAP pre-tax income per share to $1.37.

Concur raises expectations for cash flows from operations in fiscal 2012 to be at least $88 million, excluding one-time acquisition and other related costs. The company expects capital expenditures to be between $36 million and $38 million.

Revenue

Expenses:

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

Other income (expense):

Interest income

Interest expense

Loss from equity investments

Other, net

Total other expense

Loss before income tax

Income tax benefit

Consolidated net income

Less: Loss attributable to noncontrolling interest

Net income attributable to Concur

Net income per share attributable to Concur common stockholders:

Basic

Diluted

Weighted average shares used in computing net income per share:

Basic

Diluted

Assets

Current assets:

Cash and cash equivalents

Short-term investments

Restricted cash

Accounts receivable, net of allowance of $1,662 and $1,307

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 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 liabilities

Total liabilities

Equity:

Concur stockholders’ equity:

Common stock, $0.001 par value per share

Authorized shares: 195,000

Shares issued and outstanding: 54,812 and 54,065

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total Concur stockholders’ equity

Noncontrolling interest

Total equity

Total liabilities and equity

Operating activities:

Consolidated net income

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Amortization of intangible assets

Depreciation and amortization of property and equipment

Accretion of discount and issuance costs on notes

Provision for (recovery of) doubtful accounts

Share-based compensation

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, net of effects from acquisitions:

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

Investment in and loans to unconsolidated affiliates

Acquisition funds held at trust

Capital expenditures

Payments for acquisitions, net of cash acquired

Payment of contingent consideration related to Etap Acquisition

Net cash provided by (used in) investing activities

Financing activities:

Investment in consolidated joint venture by noncontrolling interest

Payments on repurchase of common stock

Net proceeds from share-based equity award activity

Proceeds from employee stock purchase plan activity

Minimum tax withholding on restricted stock awards

Excess tax benefits from share-based compensation

Repayments on capital leases

Net cash provided by (used in) financing activities

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

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Operating income:

Operating income

Income from operations as a % of total revenue (operating margin)

Add back:

Share-based compensation

Amortization of intangibles

Acquisition and other related costs

Revaluation of contingent consideration

Contingent consideration (included in compensation expense)

Noncontrolling interest joint venture

Non-GAAP operating income

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

Net income attributable to Concur:

Net income attributable to Concur

Add back:

Share-based compensation

Amortization of intangibles

Acquisition and other related costs

Revaluation of contingent consideration

Contingent consideration (included in compensation expense)

Loss from equity investments

Accretion of note discount

Income tax benefit

Non-GAAP pretax income attributable to Concur

Diluted net income per share attributable to Concur:

Diluted net income per share attributable to Concur

Add back:

Share-based compensation

Amortization of intangibles

Acquisition and other related costs

Revaluation of contingent consideration

Contingent consideration (included in compensation expense)

Loss from equity method investments

Accretion of note discount

Income tax benefit

Non-GAAP pretax diluted income per share attributable to Concur

Shares used in calculation of GAAP and non-GAAP income per share attributable to Concur:

GAAP basic shares

GAAP diluted shares

Adjustment for senior convertible notes hedge

Non-GAAP diluted shares

Non-GAAP operating expense:

Cost of operations

Sales and marketing

Systems development and programming

General and administrative

Total

Non-GAAP operating margin *

Non-GAAP pretax diluted income per share attributable to Concur *

Cost of operations

Less:

Share-based compensation

Acquisition and other related costs

Noncontrolling interest joint venture

Non-GAAP cost of operations

Sales and marketing

Less:

Share-based compensation

Contingent consideration (included in compensation expense)

Acquisition and other related costs

Noncontrolling interest joint venture

Non-GAAP sales and marketing

System development and programming

Less:

Share-based compensation

Contingent consideration (included in compensation expense)

Acquisition and other related costs

Noncontrolling interest joint venture

Non-GAAP systems development and programming

General and administrative

Less:

Share-based compensation

Acquisition and other related costs

Noncontrolling interest joint venture

Non-GAAP general and administrative

Share-based compensation. Concur’s non-GAAP financial measures exclude share-based compensation, which consist of expenses for 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.

Amortization of intangible assets. In accordance with GAAP, operating expenses include amortization of acquired intangible assets such as customer relationships and technology. Concur excludes these items from its non-GAAP financial measures because they are typically static 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.

Acquisition and other related costs. We have excluded the effect of acquisition and other related costs from our non-GAAP financial measures. We incurred such expenses in connection with our acquisitions which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. 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. The authoritative guidance on business combinations requires contingent consideration to be recorded at fair value on the acquisition date. The 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 prior 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 post-acquisition operating results. We 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 and such expense is also subject to revaluation similar to the item above “revaluation of contingent consideration”. 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 post-acquisition operating results.

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 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, including adjustments to recognize certain differences between our carrying value and our equity in net assets, 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.

Accretion of note discount. 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.

Pre-tax income is adjusted for the impact of the non-GAAP adjustments described above.

Non-GAAP diluted shares are adjusted to include the anti-dilutive impact of options to purchase shares of our own stock that reduce the potential economic dilution upon conversion of our senior convertible notes. Under GAAP, the anti-dilutive impact of such call options (“Senior Convertible Notes Hedge”) is not reflected in diluted shares. Concur has included the anti-dilutive impact of the Senior Convertible Notes Hedge in non-GAAP diluted shares because we believe it is useful for investors to understand their economic effects.

The dilutive effect of all unvested share-based awards are included in the calculation of non-GAAP pre-tax income per share.

Concur’s management uses non-GAAP operating income (including the derived non-GAAP operating margin), non-GAAP operating expense, 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 operating expense, non-GAAP diluted shares, 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 RSU grants. 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.