Early ERPx Customer Momentum Boosts Unit4 Q1 Results Following Strategic Growth Investment by TA Associates in Excess of US$2B
First Quarter 2021 Results
- Cloud subscription revenue increased 28% (YoY)
- Cloud bookings increased 9% (YoY) with 18% total bookings growth (YoY)
- 18 new customers including GBS, ALE Municipality, NorthSeaPort, Golden Lane Housing Limited, and Basingstoke and Deane Borough Council
- 120 successful go-lives, leading to 102% net revenue retention through Q1
- 204% growth (YoY) on the value of contracts via partners and 12 new partners signed
- EBITDAC growth of 34% (YoY)
These results build on the significant growth and strategy milestones achieved in 2020, underlining that Unit4’s people-centric approach to technology innovation is what mid-market organizations are seeking. Unit4 customers are recognizing that people-centric innovation is key to competitive advantage, and that differentiation in the marketplace depends on offering distinct and memorable customer experiences.
Strategic Growth Buyout by TA Associates
Unit4 announced a significant milestone in Q1 with a definitive agreement from TA Associates, a leading global growth private equity firm, for strategic growth investment of more than $2bn. Partners Group, a leading global private markets firm, will invest alongside TA. Demonstrating the significant value of Unit4, the new partnership will provide the company with fresh capital to accelerate its ambitious growth plans.
Strong Customer Momentum
Q1 saw the company secure a number of major new customer wins across key markets including GBS (Northern Europe), ALE Municipality (Nordics), Golden Lane Housing Limited (Northern Europe), NorthSeaPort (Central Europe), and The University of Twente (Central Europe).
Unit4 has also seen rapid commercial success with ERPx, its recently released next-generation intelligent Enterprise Resource Planning (ERP) solution, heralded by analysts as the most advanced ERP platform in the market. By combining its mid-market industry experience with a relentless focus on people and an industry-leading cloud platform, it is delivering unified ERP, finance and HR solutions that are ‘Right for Your Business’ out of the box.
Unit4 announced general availability of ERPx in April and has already signed 24 new ERPx customers including Americares, The University of Eindhoven, Municipality of Alkmaar, Places for People, Social Work England, North West Leicestershire District Council, Municipality of Bronckhorst, Servicepunt71, The Charity Commission, Basingstoke and Deane Borough Council, and Werkorganisatie Langedijk en Heerhugowaard since Q4 2020.
Partner Program Expansion
Unit4 achieved 204% growth (YoY) on the value of contracts via partners and added 11 new go-to-market partners to its vivrant and growing partner ecosystem, including Deel Advanced Consulting, ERP Associates, Pecan Consulting Solutions, Levio Conseils Inc. Kardinya Partners, Paradime Solutions, PREACT, GCC, Rinedata, Counterpart, and WIN-Consultancy. Unit4 also signed new ISV partner, HeyCentric, and extended partnerships with Greenlight, 2opus, and Diesis.
In March, Unit4 launched a new Partner Developer Program, Developer 4U, designed to support partners building extensions to ERPx, delivering value to customers and creating new revenue streams for partners. Later this year, Unit4 plans to launch its first App Marketplace, Marketplace 4U, enabling customers to deploy value-add applications. Developer 4U partners will have access to development environments, extension kit training, and a certification program.
Comments on the News:
“As businesses continue to ride out the uncertainties of the last year, we are seeing demand for people-centric technology that can help to support their growth aspirations and help them thrive as the market begins to regain its momentum,” said Gordon Stuart, CFO at Unit4. “Ensuring that our customers find the best path back to growth and success is of paramount importance. With new investment and an industry leading cloud platform, Unit4 can support them on that journey as never before.”
“Organizations are rebuilding for the post-pandemic environment, with more companies considering a cloud ERP solution and looking for a vendor they can trust to help them on their journey,” said Ray Wang, Founder & Principal Analyst, Constellation Research. “The significance of the recent buyout from TA Associates and the availability of ERPx distinguishes Unit4 from its competitors as being a vendor of choice for customers with increased expectations for obtaining stability, growth and innovation.”
- Unit4 announced general availability of ERPx, its unified cloud platform for Mid-Market people-centric organizations
- Read about the strategic growth buyout by TA Associates
- Unit4 was named as a Facilitator by Nucleus Research in the CPM Value Matrix 2021
- Unit4 named in Constellation Research’s Cloud ERP and Enterprise Applications Platforms Shortlist for 2021
Unit4’s next-generation enterprise solutions power many of the world’s most people-centric mid-market organizations. Our state-of-the-art cloud platform, ERPx, brings together the capabilities of Financials, Procurement, Project Management, HR and FP&A onto a unified cloud platform that shares real-time information and is designed with a powerful, people-centric approach, so employees can benefit from better insight and become more effective and increasingly engaged. It supports rapid and continuous change while delivering individualized fit for customers at scale, delivering the right tools to unify the processes across their organization, and connect their people. Unit4 serves more than 6,000 customers globally including Bravida, Havas, Migros Aare, Americares, Save the Children International, Action against Hunger, Metro Vancouver, Forest Research, Southampton City Council, Habitat for Humanity, Selkirk College, FTI Consulting, and Surrey County Council.