Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Diligent’s pace of growth slows in 1Q, client retention dips

Diligent’s pace of growth slows in 1Q, client retention dips on M&A activity

April 16 (BusinessDesk) - Diligent Board Member Services, the governance app developer which was forced to restate its financial statements, has slowed its pace of new customer growth in the first three months of the year, and had a small dip in client retention amid increased merger and acquisition activity in the US.

The New York-based, New Zealand-listed company added a net 113 new client agreements in the three months ended March 31, taking its total number of customers to 2,563. That’s up 28 percent from a year earlier, though its new additions shrank from 201 in the first quarter of 2013.

Diligent’s customer retention rate slipped to 96 percent from 97 percent, with a “record level of client merger and acquisition activity or situations in which the board operations ceased during the first quarter, representing approximately two-thirds of client cancellations during the quarter and occurring primarily within its US client base,” the company said. Revenue retention stayed above 97 percent.

The company is emerging from protracted administrative errors that forced it to restate its accounts for the 2010 through 2013 financial years after incorrectly recognising revenue, having also had to backtrack after granting too many options to chief executive Alex Sodi.

Diligent continued to build its cash balance, adding a further US$4.5 million in the quarter to US$60.6 million. The company has been mulling what to do with the cash, and last month Sodi said the company is looking at growth opportunities, including potential acquisitions.

The company added six staff to its research and development in the quarter as it continues to work on new product development.

The shares fell 1.7 percent to $4.05 yesterday, and have increased 6.6 percent this year.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news