The release of Diligent Board Member Services quarterly result earlier this week saw the company almost triple its sales in the June quarter compared to the same quarter last year.

Diligent’s second quarter sales were $10.1m compared to $8.2m for the March quarter, and $3.7m for the June 2011 quarter. That is rise in sales of 275% in just one year.

Even though Diligent is a one product company, this doesn’t seem to deter clients or investors. The company’s client base has increased 406% in the last year and it added 216 clients in the last quarter.


Number of Customers

Average Revenue (US$000)

Jun ‘12



Mar ‘12



Dec ‘11



Sep ‘11



Jun ‘11



Mar ‘11



Dec ‘10



Sep ‘10



Jun ‘10



Many companies top line revenue may be increasing but a closer look at average revenue per customer can tell you more about the consistency of revenue. A decreasing average revenue per customer is not sustainable. The above figures show that Diligent has continued to increase its average revenue per customer and this is key to a company’s success. 

Growth companies, like Diligent, can contribute substantially to a client’s portfolio. An investment in Diligent when it first listed in 2007 of $1.00 would have made a return of approximately 300%.

The NZX needs more Diligent’s to excite investor interest.

Victoria Harris

Research Analyst

Disclosure of Interest:  Milford holds shares in Diligent on behalf of clients.