Welcome!

Web 2.0 Authors: Jim Kaskade, Scott Bampton, Aater Suleman, Carmen Gonzalez, Pat Romanski

News Feed Item

UNIT4 Reports Growth in Revenues and Operating Profit

SLIEDRECHT, THE NETHERLANDS -- (Marketwired) -- 02/17/14 -- UNIT4 Group, the global leader in software that supports business change, has reported its financial results for 2013.

Highlights included:

  • Total revenue increased by 4.4% to USD $672.0 million (EUR 490.5 million) (2012: USD $643.6 million (EUR 469.8 million))
  • FinancialForce.com revenue increased 85% with annual run rate up 80% to USD $30.6 million
  • EBITDA, excluding FinancialForce.com and costs related to the potential public-to-private acquisition of UNIT4, rose 14.7% to USD $149.7 million (EUR 109.3 million) (2012: USD $130.5 million (EUR 95.3 million))

SaaS and subscription revenues continued to show a strong upward trend, with growth of 42.3% compared with 2012. Traditional perpetual product revenue showed a small decline of 5.5% to an amount of USD $98.9 million (EUR 72.2 million). The strong growth in SaaS and subscription resulted in growth in the annual run rate of SaaS and subscriptions from USD $78.1 million (EUR 57.0 million) at year-end 2012 to USD $108.8 million (EUR 79.4 million) at year-end 2013, an increase of USD $30.7 million (EUR 22.4 million) or approximately 40%.

The trend towards SaaS and subscription is clearly evident and UNIT4 is actively shifting towards this model. Increasing numbers of potential customers are considering moving to the cloud, including for full ERP suites, and UNIT4 is able to meet that demand.

In 2013 total revenue grew by 4.4% to USD $672.0 million (EUR 490.5 million) (2012: USD $643.6 million (EUR 469.8 million)). Total recurring revenues now represent almost 54% of total revenues (2012: 52%).

International growth
2013 saw strong growth group-wide in SaaS and Cloud based solutions, and UNIT4 is well positioned to further benefit from the rapid market trend away from traditional on-premises systems.

In the UK we enjoyed significant success from a strategic partnering model which we are now seeking to develop across the group. The UK's long-term partner strategy delivered major joint initiatives. Following a contract with arvato, Agresso became the cloud based platform for the UK Government's first independent shared service centre. The BT Global Services contract for London Tri-Boroughs shared service saw Agresso again delivered via an outsourced cloud based service.

In North America SaaS revenues grew 41%. We continued to build momentum in key service sectors including non-profit, financial services and local government, with successes including a $2.3 million agreement with the City of Medicine Hat.

In Germany we signed significant local government contracts and successfully went live on Agresso in four Saxony state organizations in less than six months. We signed up more than 20 new partners to implement and resell UNIT4 solutions.

In Spain and Portugal, the Ekon cloud business grew by 60% while Agresso sales were up 80% including contracts at Randstad in Portugal and Kutxa Bank in Spain.

In Benelux, the Business Software division made significant progress in Higher Education (signing Wageningen University & Research Centre, its first University), healthcare, the commercial sector, the Belgian government sector and with Agresso Wholesale. The Accountancy division added 175 new customers while the Healthcare division achieved double digit growth and proved successful in larger organizations including Stichting Philadelphia and Cicero Zorggroep.

In Sweden strategic deals included the City of Gothenburg and HSB GIT and cloud sales continued strongly. A record year in Norway saw double digit growth and 31 new customers, including 13 in local government and 10 resulting from a new focus with partner IT-Nor on fast growing SMEs mainly in the oil service sector. In Denmark revenue grew 79% with SaaS up 30%. Agresso was sold to one of the country's largest companies.

In France we bought our distributor Agresso France, and consolidated three operations into a single entity. Even with all this change license revenue grew 25%.

In Asia, we saw a remarkable 50% growth in licenses and 35% growth in SaaS. UNIT4 Prosoft's HRMS introduced Chinese payroll capabilities, which will open up more market opportunities in the region.

FinancialForce.com

FinancialForce.com, the US-based cloud applications company formed with minority investment from salesforce.com, again grew strongly in 2013. Investment in FinancialForce.com was increased to support the growing momentum and opportunities in the fast-growing cloud applications market.

Total revenue grew 85%, with the annual run rate in December 2013 (including services) reaching $30.6 million, compared to $17.0 million in December 2012 (+76%) and $21.5 million in June 2013. This illustrates how strongly growth accelerated in the last few months, where only limited revenues could be recognized. The number of new customer deals was up more than 50% over 2012, with growth achieved across the small business, mid-market and enterprise sectors. Notably, FinancialForce.com's penetration of the enterprise market increased, particularly with its Billing and PSA applications. The number of customers using both core applications -- Accounting and Professional Services Automation (PSA) -- more than doubled and deal size (annual run rate) also grew.

In order to drive growth staff numbers increased 60% in 2013 to 250 FTEs across the US, UK and Spain and investment in marketing grew by more than 75%. In November, the company moved closer to providing a full cloud ERP with two acquisitions: Vana Workforce, a global human capital software provider and maker of a leading HR application on the Salesforce platform; and the business and assets of Less Software including the firm's Supply Chain Management (SCM) solutions. The applications have been re-branded FinancialForce Human Capital Management (HCM) and FinancialForce Supply Chain Management (SCM) respectively. FinancialForce.com can now offer companies a unified set of applications sharing the same cloud as Salesforce CRM including Financial Management, Professional Services Automation, Supply Chain Management and Human Capital Management.

Advent International
On 18 November 2013 UNIT4 and Al Avocado B.V., a company ultimately indirectly controlled by funds advised and managed by Advent International Corporation, jointly announced that they had reached conditional agreement on the intended public offer for all issued and outstanding ordinary shares in the capital of UNIT4 at an offer price of USD $53.08 (EUR 38.75) (cum dividend) in cash per issued and outstanding ordinary share of UNIT4 (the "Offer"). The Offer Memorandum was published on 20 December 2013. The Offer values 100% of the UNIT4 shares at USD $1,606 million (EUR 1,172 million). The Offer condition in relation to competition clearance has been satisfied following regulatory clearance from the European Commission and the Federal Trade Commission and Antitrust Division of the US Department of Justice in connection with the Offer.

An extraordinary general meeting of shareholders shall be held at 15:00 hours on 19 February 2014. Holders of shares in the capital of UNIT4 shall have the opportunity until 28 February 2014 at 17:40 hours CET to tender their shares under the Offer, unless the Offer period is extended.

Commenting on the future, UNIT4's new CEO, José Duarte said: "Business change is the norm now and it's accelerating. Business agility is not something most ERP software has traditionally provided. Enterprise IT infrastructures were built to last, not built to change, but vendors have to re-architect and re-imagine software to enable and support change. Social, mobile, analytics, and cloud are the four megatrends impacting most business. Our recent Agresso Milestone 4 software launch signifies a new era of ERP built for people-centric businesses, innovating with new social and mobile technologies, analytics and cloud. We're in a strong position to capitalize on these trends based on the most change-friendly software on the market and we're excited about the future."

The full announcement is available on the UNIT4 Investor News site.

About UNIT4

UNIT4 is a global cloud-focused business software and services company aimed at helping dynamic public sector and commercial services organisations to embrace change simply, quickly and cost effectively. The Group incorporates a number of the world's leading change embracing software brands including Agresso, our flagship ERP suite for mid-sized and large services intensive organisations; Coda, our best-of-class financial management software; and FinancialForce.com, the cloud applications company formed with investment from salesforce.com.

With operations in 26 countries worldwide, revenue of USD $672.0 million (EUR 490.5 million) was realised in 2013. UNIT4 is headquartered in Sliedrecht, the Netherlands and has over 4,000 employees.

For more information on UNIT4 or any of its operating companies, please visit the website at www.unit4.com, follow us on Twitter @UNIT4_Group or visit our Facebook page http://www.facebook.com/UNIT4BusinessSoftwareNV

Conversion 1 EUR = USD $1.370

This document contains certain future expectations about the financial state of affairs and results of the activities of UNIT4 as well as certain related plans and objectives. Such expectations for the future are naturally associated with risks and uncertainties because they relate to future events, and as such depend on certain circumstances that may not arise in the future. Various factors can cause real results and developments to deviate considerably from explicitly or implicitly made statements about future expectations. Such factors may for instance be changes in expenditure by companies in important economies, statutory changes and changes in financial markets, in pension costs, in the salary levels of employees, in future exchange and interest rates, in future takeovers or divestitures and the pace of technological developments. UNIT4 therefore cannot guarantee that the expectations will be realized. UNIT4 also will not accept any obligation to update statements made in this document.

Press contact:

Hilary Pike
UK PR Manager
UNIT4
+44 (0) 7810 657 778
Email Contact
@hilaryjg

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
SYS-CON Events announced today that Harbinger Systems will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Harbinger Systems is a global company providing software technology services. Since 1990, Harbinger has developed a strong customer base worldwide. Its customers include software product companies ranging from hi-tech start-ups in Silicon Valley to leading product companies in the US and large in-house IT organizations.
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
SYS-CON Events announces a new pavilion on the Cloud Expo floor where WebRTC converges with the Internet of Things. Pavilion will showcase WebRTC and the Internet of Things. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices--computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridsto...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at Internet of @ThingsExpo, Andrew Bolwell, Director of Innovation for HP’s Printing and Personal Systems Group, will discuss how key attributes of mobile technology – touch input, senso...
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., will show what is needed to leverage the IoT to transform your business. He will discuss opportunities and challenges ahead for the IoT from a market and tec...
SYS-CON Events announced today that TeleStax, the main sponsor of Mobicents, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TeleStax provides Open Source Communications software and services that facilitate the shift from legacy SS7 based IN networks to IP based LTE and IMS networks hosted on private (on-premise), hybrid or public clouds. TeleStax products include Restcomm, JSLEE, SMSC Gateway, USSD Gateway, SS7 Resource Adaptors, SIP Servlets, Rich Multimedia Services, Presence Services/RCS, Diame...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
As a disruptive technology, Web Real-Time Communication (WebRTC), which is an emerging standard of web communications, is redefining how brands and consumers communicate in real time. The on-going narrative around WebRTC has largely been around incorporating video, audio and chat functions to apps. In his session at Internet of @ThingsExpo, Alex Gouaillard, Founder and CTO of Temasys Communications, will look at a fourth element – data channels – and talk about its potential to move WebRTC beyond browsers and into the Internet of Things.
SYS-CON Events announced today that Gigaom Research has been named "Media Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Ashar Baig, Research Director, Cloud, at Gigaom Research, will also lead a Power Panel on the topic "Choosing the Right Cloud Option." Gigaom Research provides timely, in-depth analysis of emerging technologies for individual and corporate subscribers. Gigaom Research's network of 200+ independent analysts provides new content daily that bridges the gap between break...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.