Editor’s Note: Welcome to February’s edition of our Technology Round-Up. Over the past month, we’ve tracked so many exciting developments within the supply management solution provider market that we decided to publish this month’s Technology Round-Up in three parts. Part I and Part II – published last week – feature solution innovation and provider partnerships, while Part III (today) features financial news from the solution provider market. There’s something for everyone in this month’s edition – technology and finance – so grab yourself a cup of coffee and get caught up on all the technology news that’s fit to print!
Hubwoo Releases Fourth Quarter 2014 Results
On January 29, the Paris-based provider of business networks and spend management solutions, announced its financial results for the fourth quarter of fiscal year 2014. The company reported revenues of 7.1 million euros, which were higher than Q32014 but lower than the same reporting period from 2013. As a whole. revenue is down 11% year-over-year, but company officers attribute stronger Q4 performance to a stronger performance in services, which saw a 38% growth from Q3, with new and existing customers placing more orders. Software-as-a-Service sales have grown by more than 100% compared to 2013; while encouraging, Hubwoo remains cautious about the long-term viability of SaaS as a revenue driver.
Selectica Announces Third Quarter Fiscal Year 2015 Financial Results
On February 9, Selectica (NASDAQ: SLTC), the California-based provider of contract management and strategic sourcing solutions, announced its financial results for the third quarter of fiscal year 2015. Selectica officials reported GAAP revenue for Q3 as $6 million, a 15% increase over 2Q. They also reported GAAP gross profit as a percentage of revenue as 51.5%, 17.8% greater than 2Q. Lastly, Selectica officials reported a GAAP net loss of $3.8 million ($0.49 per share), an improvement of $0.22 per share.
Regarding Selectica’s 3Q results, Blaine Mathieu, CEO and President of Selectica, said “after six quarters of hard work by a very committed team, Selectica is now in process of turning the corner. With momentum on our side, we anticipate these positive results to accelerate in the quarters ahead.” Mathieu added that the company’s results are a product of a “revamped sales team” that “has hit its stride,” an increased ability by the company “to effectively deliver customer value and revenue from the sourcing and contract management client base,” and a renewed focus “on rightsizing our services and support teams with an eye on efficiency.” As a result, Mathieu believes that Selectica has “now created a foundation for sustainable growth and are set on a path to profitability.”
SciQuest Announces Fourth Quarter and Full Year 2014 Financial Results
On February 5, SciQuest (Nasdaq: SQI), a North Carolina-based provider of automated, cloud-based, contract and spend management solutions, announced its fourth quarter and full-year financial results for 2014. Most notably, SciQuest company officials reported GAAP revenues of $25.6 million for Q4 and $101.9 million for 2014 – a more than ten percent increase over 2013. They also reported that net cash provided by operating activities in 2014 was $17.4 million, while the adjusted free cash flow in 2014 was $10.6 million. Stephen Wiehe, SciQuest’s President and Chief Executive Officer noted that during the fourth quarter, SciQuest added 17 new customers.
Looking ahead in 2015, SciQuest officials estimate that their GAAP revenues will be between $25.6 million and $25.9 million for Q1, while GAAP revenues for the full year will be between $105.9 million and $109.9 million. They also estimate that net cash provided by operating activities will be between $21.5 million and $23.5 million.
Trade Extensions Releases Financial and Performance Metrics for 2014
On January 22, Trade Extensions, the Sweden-based provider of advanced sourcing solutions, announced a number of financial and performance metrics for 2014 – chief among them that the company grew revenues by 26% last year and has effectively doubled in size over the past three years. According to Trade Extensions, it owes 75% of its total income to licenses for its principal solution, TESS, which grew by 25% in 2014. It also attributes much of its revenue growth to greater activity in both the European and North American markets. Overall, Europe accounts for two thirds of Trade Exensions’ revenue, while North American accounts for the final third. Revenues in the Nordic region and the rest of Europe grew by 14% and 27%, respectively, while revenues in the U.S. grew by 40% after the company installed the first permanent U.S. Sales Director there.
Trade Extensions CEO, Garry Mansell, also attributes the company’s growth in 2014 to the launch of TESS Academy – its virtual training center that allows TESS solution users to train on the program and certify at progressively higher levels. “The TESS Academy is another part of our strategy to make our users as self sufficient as they want to be – even with complex optimisation challenges.” Already this year, the company has appointed sales directors in the UK and Germany, and one will be standing up in Eastern Europe in May, which Mansell expects will continue to drive Trade Extensions’ growth into 2015.
Hiperos Releases 2014 Financial Results
On January 26, Hiperos, an Opus Global Company and New Jersey-based provider of third-party management solutions, announced financial performance results for 2014. Hiperos had a strong year compared to 2013, and posted a number of impressive year-over-year results, including a 100% customer renewal rate, a 75% rise in new-name customers, and a 101% rise in newly-signed annual contract value since the acquisition in July. Hiperos also saw a 104% increase in the use of its platform between its customers, which are now transacting in 187 countries. According to Greg Dickinson, CEO of Hiperos, “Our 2014 results confirm that third-party management has become a must-have solution for today’s global corporations.”
Since its acquisition by Opus Global in July, Hiperos has been able to invest more in the company. For example, it grew its headcount by 68% to support customer service, engineering, marketing, sales, and other functions. It also opened two additional satellite offices – one in Palo Alto, California and the other in Chicago – bringing the number of its offices to six. “The strategic investments we have made since acquiring the company are already yielding results, enabling Hiperos to deliver even greater value and service to existing customers and accelerate its ability to attract new ones,” said Doug Bergeron, founder and CEO of Opus Global. ____________________________________________________________________________________________________
The analyst team at Ardent Partners will continue tracking the reported financial results and other news of the key solution providers in this space – so readers, please stay tuned. And for those interested providers, we encourage you to send us your results and other announcements.
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