CPO Rising’s Technology Round-Up returns today with another assortment of supply management technology news and updates from the past month to share with our community. If you are a sourcing, procurement, or spend management solution provider and you have news to share with us, please drop us a note at editor at cporising dot com. Thanks, and enjoy!
Determine Announces Third Quarter 2018 Financial Performance Results
Addition by Subtraction: Basware Sells Two Business Units to Focus on P2P
Hubwoo Announces Fourth Quarter 2017 Financial Performance Results
Exari Moves to Capture Emptoris Customers Before “Sunset”
Icertis Gets a $50 million Shot in the Arm
Determine Announces Third Quarter 2018 Financial Performance Results
Determine, Inc. (NASDAQ: DTRM), the Indiana-based provider of contract management and source-to-settle solutions for the cloud, recently announced financial results for the third quarter of Fiscal Year 2018. Determine CEO, Patrick Stakenas, noted that the company’s year-over-year and quarter-over-quarter performance continued to improve through Q3, which he attributed to Determine’s focus on improving management, its products, sales and marketing initiatives, including lead generation. Stakenas referenced the newest release of the Determine Cloud Platform (read last week’s coverage on it, here), as well as upcoming product enhancements, like artificial intelligence (AI), Blockchain, and machine learning, as key features that may continue Determine’s momentum in the coming year. In the meantime, highlights from 3Q FY 2018 include:
- $7.467 million in revenue, a 9% year-over-year increase
- $5.552 million in recurring revenue, a 9.9% year-over-year increase
- $1.915 million in non-recurring revenue, a 6.5% year-over-year increase
- $4.484 million in gross profits, a 6.9% year-over-year increase
- $1.303 million GAAP net loss, a 29% year-over-year decrease
Addition by Subtraction: Basware Sells Two Business Units to Focus on P2P
Ardent Partners analysts learned recently that Basware, the financial supply chain provider, headquartered in Finland, has sold off two business units in an effort to focus its attention and consolidate its customer base around its cloud-based purchase-to-pay (P2P) solutions. Private equity firm, Verdane Capital, has agreed to purchase Basware’s Financial Performance Services (FPS) and Banking operations for a total of 35 million Euros. Verdane will turn the two units into separate operating entities. FPS is a financial reporting and consolidation software solution provider, while Banking provides cloud-based automated payment solutions to enterprises, and has garnered 40% of the Finnish market for such products. The deals are expected to close in the first quarter of 2018 and will result in the transfer from Basware to Verdane of 95 employees working in these two business units.
Hubwoo Announces Fourth Quarter 2017 Financial Performance Results
Recently, Hubwoo (Euronext: HBW.NX), the Paris-based provider of spend management and business process automation solutions for the cloud that is owned (for now) by Perfect Commerce, announced financial results for the fourth quarter of 2017. The three measures of financial performance cited — consolidated revenue, SaaS-derived revenue, and services-derived revenue — were all down compared to the fourth quarter of 2016. Year-long financial performance across all of these metrics was also down compared to 2016. Company officials attributed these declines to the expiration of customer SaaS contracts, as well as the downsizing of the services market. Fourth quarter 2017 results reported are:
- €4.3 million in consolidated revenue, a 10% decrease from 4 Q 2016 and a 13% decrease year-over-year
- €4.0 million from SaaS solutions, a 7% decrease from 4 Q 2016 and a 10% decrease year-over-year
- €0.2 million from services, a 42% decrease from 4 Q 2016 and a 36% decrease year-over-year decrease
Exari Moves to Capture Emptoris Customers Before “Sunset”
Earlier this month, Exari, a Boston-based provider of cloud-based contract management solutions, announced a campaign to capture IBM Emptoris customers before they migrate to the SAP Ariba Network. Readers may recall that last May, IBM Emptoris and SAP Ariba announced a partnership in which they would integrate Emptoris as well as IBM’s Watson and SAP’s Leonardo in an effort to bring cognitive procurement to the masses. One “casualty” of the partnership is the Emptoris platform; at the time, IBM announced a halt to developmental work on Emptoris, but planned to continue to support Emptoris customers through at least December 2019. IBM also committed to SAP Ariba that it would try to re-capture Emptoris customers and migrate them to the Ariba Network to fulfill their source-to-settle needs. Exari is seizing the opportunity to divert Emptoris customers who have used the platform to manage their contracts.
Exari officials are touting the company’s bench strength in managing contract migrations from Emptoris, noting that they have over 100 years of combined experience in the process. Exari boasts a cloud-based, end-to-end, contract life cycle management platform that enables users to migrate data and documents (for example, from sourcing events) and build new contractual documents. And because it is a paperless, cloud-based contract, users can build data and risk models within the platform that allow them to quickly understand their obligations, rights, and risks, rather than have them buried deep within a paper contract.
To learn more about Ardent’s analysis of the deal, including Q&A with IBM and SAP Ariba principals, click here and here.
Icertis Gets a $50 million Shot in the Arm
Finally, we recently learned that Icertis, the Seattle, Washington-based provider of contract management solutions in the cloud, received $50 million in Series D funding from Meritech Capital Partners, as well as PSP Growth and Cross Creek Advisors. The latest investment brings their total investment to $96 million. With its Series D Funding, Icertis plans to invest in integrating AI capabilities within its Icertis Contact Management (ICM) platform’s risk management, compliance, and revenue optimization tools in order to enable end users to become more agile, proactive vis-a-vis contract and supplier risks. It will also continue its physical growth in North America, EMEA, and Asia-Pacific, and possibly acquire innovative companies or technologies.
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