UNIT4 Results Half Year 2011: Strong growth in SaaS revenues
- Total revenue increased by 13% to €225.9 million (H1 2010: €199.3 million)
- Product (license) sales grew 22% to €36.3 million (H1 2010: €29.8 million)
- Recurring revenue (contracts & SaaS / subscriptions) increased by 12% to €109.1 million (H1 2010: €97.6 million)
- SaaS / subscription revenues grew 53% (H1 2010: 25%) from €12.4 million to €18.9 million
- Pro forma, revenues (including H1 2010 Teta) grew organically by 5%
- Strong performance from FinancialForce.com with enormous revenue growth and increased average deal size
Half year 2011
The first half year 2011 ended ahead of plan especially with regards to the positive development of SaaS / subscription revenues (included in ‘Contracts & subscriptions’).
Total revenue grew 13.3% to €225.9 million (H1 2010: €199.3 million).
Despite the strong SaaS / subscription revenues – which puts pressure on product sales – product revenue still grew 21.8% to a total of €36.3 million (H1 2010: €29.8 million. Large deals were achieved in Norway (Oslo Commune >€2.5 million and a major construction company >€1.5 million), UK (Magnox >€2.5 million), the Netherlands (financial services >€1 million) and Poland.
As expected service revenue grew significantly, up 12% to €80.5 million (H1 2010: €71.9 million). The average number of in-house consultants worldwide also increased by 12%.
Also contract revenues grew significantly. Revenues from contracts (maintenance and subscriptions) rose by almost 12% to €109.1 million (H1 2010: €97.6 million). The share of contracts in total revenue declined to 48% (H1 2010: 49%) due to the full consolidation of Teta (acquired in July 2010).
The most positive outcome of the first half year was the development of SaaS / subscription revenues. An increasing number of customers are choosing the subscription model, with their software delivered as a service. In total the SaaS / subscription revenues (included in ‘Contracts & subscriptions’) grew 53% to €18.9 million (H1 2010: €12.4 million). The annual run rate went up from €26.5 million (June 2010) to €39.6 million as of June 2011, which reflects a growth of €13.1 million or approximately 50%. In particular FinancialForce.com performed very strongly.