Hubwoo Announces Q1 2014 Revenues

PARIS, April 30, 2014 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading cloud procurement solution provider, today announced financial information for Q1 2014, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.

Gregory A. Mark, Hubwoo Chairman and CEO commented: "Although we are disappointed with the decline in SaaS revenue, we are neither surprised nor alarmed as we have been communicating for the past many quarters that this would occur. We are pleased, however, with both the strength and breadth of the net new orders signed in Q1 and those currently under negotiation today. Between Catalog & Search, our consumer-like catalogue management solution; Easy Buy, a solution which provides a simplified corporate buying experience; our Oil & Gas industry field ticket based Services Procurement solution, all combined with our collaborative commerce network, The Business Network by Hubwoo, we are solving real business problems and delivering real value to our customers. The market is realising that there is significant value in a European-based business network, focused on collaborative commerce rather than the more typical document exchange replacement of email that charges an unjustified fee to their supplier customer. Additionally, the GEP partnership is taking shape and we look forward to bringing our integrated joint solution to market soon. We are confident that this partnership will help drive orders growth in the second half of 2014."     

Q1 2014 total revenue was EUR 6.9 million, down 9% as compared to Q1 2013. The recurring SaaS component of revenue was EUR 5.7 million, down 10% from the same quarter of 2013 as a consequence of the end of customer contracts as part of the technology transition that the company has been experiencing over the last seven quarters.

The level of order intake of the first quarter, however, was strong, and the company envisages to progressively offset these revenue losses in the next coming quarters. The replacement of the old contracts by newly signed customers shows and confirms margin improvements, as incremental new business is predominantly based on The Business Network, the IP of which is directly owned by Hubwoo.

Major Q1 2014 events

GEP Alliance

On February 27th, Hubwoo and GEP signed an Alliance Agreement to leverage each other's strengths to provide a joint source-to-pay solution native to cloud, mobile, and touch technologies, and already connected to over one million businesses.

The joint solution will combine GEP's game-changing sourcing and procurement solution, SMART by GEP, a comprehensive, unified source-to-pay platform  -- including spend analytics, sourcing, contract management, supplier performance management and purchasing – native to cloud, touch and mobile technologies, with The Business Network by Hubwoo, an open B2B collaboration and catalog management hub that enables mass supplier enablement. Suppliers on the Hubwoo Business Network will be able to collaborate on orders, invoices, RFQs, catalogs and other processes directly with buyers on the SMART by GEP platform.

About Hubwoo (www.hubwoo.com)

Hubwoo is a Source-to-Pay cloud solution provider that enables holistic spend management. Through a combination of the world's busiest open and collaborative business network, and innovative procurement applications native to mobile technology, Hubwoo joins Procurement and Accounts Payable processes, connecting buying and supplying companies globally. Hubwoo helps businesses unlock their full savings potential in core and tail spend, from goods to services. 

Significant customers include BASF, Honeywell, Shell, Evonik, EDF, Nokia, Nationwide, Michelin, Henkel, Statoil, CONSOL Energy, EcoPetrol, Campbell's, Burton's Foods, and The Dow Chemical Company. Hubwoo's global partnerships include GEP, Microsoft, IBM, and Dun & Bradstreet. 

Hubwoo has major operations in Paris, Houston, Chicago, Bonn, London, Manila, and Leuven.  Hubwoo is listed in Compartment C on the Euronext Paris Eurolist.

ISIN: FR0004052561, Euronext: HBW, Reuters: HBWO.PA, Bloomberg: HBW:FP

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SOURCE Hubwoo