Unit4 Investment in Customer Experience and Innovation Drives Q3 Cloud Revenue Growth
- On track to meet pre-COVID EBITDA commitment
- Cloud subscription YTD revenue increased 16% YoY
- Net Revenue Retention improved to 103.4%
- Expands development capacity with new Indian Development Center
Net revenue retention has grown through Q3 to 103.4%. Furthermore, Unit4 saw an increase in YTD cloud subscription revenue of 16% YoY. The company secured a number of notable new customer wins from within its core industries, including Macaw International, Social Work England, Poseidon Marktforschungs- und Servicegesellschaft mbH, and Sitowise.
“Our focus is on our customers and delivering the service and innovation they need to be successful in the face of economic uncertainty,” said Mike Ettling. CEO, Unit4. “We knew the importance of investing in the right areas and focusing on our customers’ business continuity and providing them with the tools to help them stay resilient and responsive. ERPx, our recently announced next-generation cloud ERP solution, will be delivered early next year, redefining what ERP and enterprise software can do for people-centric mid-market organizations.”
Partner Program Expansion
In Q3, Unit4 reported 65% growth YTD (versus 2019) on the value of contracts via partners demonstrating the traction of its re-focused global partner program. In addition to three new global strategic partnerships announced recently, Unit4 has also entered into a partnership with groupelephant.com, enabling Unit4 to leverage its global presence and experience in designing, building and implementing cloud-based, hybrid and on-premises ERP, HR and Payroll systems for private sector, and Public Sector agencies.
Customer successes working with partners in Q3 included a substantial contract with Surrey County Council in the UK for ERP, HR and procurement, replacing its SAP system. Leigh Whitehouse, Director of Resources, Surrey County Council said: “Our vision for a transformation program meant an end to-end review of the finance, procurement and HR and payroll processes and systems we had in place with our previous IT supplier. We needed a true cloud platform that would deliver high-level business outcomes across the Council ecosystem and Unit4 is the solution to deliver this for us. It will be a bold step change in the user experience, empowering people with accurate and insightful data for enhanced, intelligent decision making, and ultimately future-proofing our workforce.”
Unit4 ERPx available Q1 2021
Unit4 recently announced its next-generation cloud ERP solution for mid-market services organizations, to more than 3,000 customers, prospects and partners, at its virtual conference X4U. Available in Q1 2021, ERPx delivers fully integrated ERP, HCM and FP&A, on a unified architecture, with rapid deployment and industry-specific innovations out-of-the-box. Its modern cloud platform is also designed to enable customers and partners to consume and build new services simply that help them differentiate and pivot as business conditions change.
Expanding Development Capacity
Unit4 also announced today the establishment of Unit4 Noida Labs, an Indian based Unit4 development center adding an additional multi-disciplinary R&D site to its portfolio. “In addition to R&D centers in Wroclaw, Poland and Granada, Spain, we continue to invest in product development and expect the new facility to help us grow and scale beyond our existing capacity with easy access to highly skilled developers,” said Claus Jepsen, CTO at Unit4.
“We made a promise to avoid redundancies as a result of COVID-19 and we have kept true to that, ensuring cloud migrations and go-lives continue at volume,” said Gordon Stuart, CFO at Unit4. “Our continued growth and ability to meet targets are the result of prudent decisions on cost control taken earlier this year. At the same time, we are expanding our development capacity with Unit4 Noida labs, and investing over €2m in customer success annually, adding 40 new customer success professionals to the team and ensuring a customer-centric approach to all we do.”
Q3 Analyst Highlights:
- Unit4 ERP featured as a Strong Performer in The Forrester Wave™: Cloud Human Capital Management Suites, Q2 2020 Report.
- Unit4 was highlighted as a Major Player in the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Medium-Sized/Midmarket Business ERP Applications 2020 Vendor Assessment.
- Unit4 was listed as a Leading Provider in The Tambellini Group’s 2020 Student Systems US Higher Education Market Share, Trends, and Leaders Report and the 2020 Financial Management and Human Capital Management System US Higher Education Market Share, Trends, and Leaders Report.