Welcome!

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.

Latest Stories
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
What You Need to Know You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technolog...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
Why Federal cloud? What is in Federal Clouds and integrations? This session will identify the process and the FedRAMP initiative. But is it sufficient? What is the remedy for keeping abreast of cutting-edge technology? In his session at 21st Cloud Expo, Rasananda Behera will examine the proposed solutions: Private or public or hybrid cloud Responsible governing bodies How can we accomplish?
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...