Hubwoo announces Q3 2013 Revenues

PARIS, Oct. 31, 2013 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading collaborative business network provider, today announced financial information for Q3 2013, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.

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Gregory A. Mark, Hubwoo Chairman and CEO commented: "Hubwoo continues to focus on cost containment during this transition period following the merger and acquisition impacts to our industry in 2012.  In parallel, the Company continues down the path of rebuilding its growth engine through investment in The Business Network, expansion of our relationship with Microsoft and the establishment of new go to market partnerships around source-to-settle applications and a long tail supplier payment solution. Although the time to convert leads into revenue is taking longer than we had hoped, and noting that we continue to see challenges to our legacy 'powered by SAP software' SaaS business, we trust that in time, new revenue streams will begin to materialize."     

Revenues and profitability:

Q3 2013 revenue was EUR 7.6 million, down 5% from the same period in 2012.  The SaaS component was EUR 6.3 million, down 5% as compared to Q3 2012.  The services component of revenue was EUR 1.3 million, down 9% as compared to Q3 2012.

The largest factor in revenue decline is still the market impact that M&A activity in our industry had on our business last year.  For the past few quarters the company has mentioned the transition period we are in to build new pipeline and move our business forward.  During this transition period, the company has focused strongly on cost containment and grew EBITDA 53% in H1 2013 as compared to H1 2012 and reported an EBIT and free-cash flow positive profitability indicator at the end of H1.  Advance indicators of profitability continue to show similar profitability levels for the full year 2013.  H2 profitability figures will be announced following the audited 2013 results.

Major Q3 2013 events

New Solution Releases

New solution releases during the quarter included:

• Connections – A self-service supplier enablement solution on The Business Network. Through an invitation and acceptance step, companies can now easily connect to their trading partners for productive B2B commerce. This new function combines the intuitiveness that users know in making social network connections together with the security and transactional enablement required in B2B commerce. Connections is the latest in Hubwoo's best in class supplier onboarding capabilities that include managed supplier onboarding services, automated purchase order on-the-fly onboarding, and master data exchange directly with buyers' ERP systems.
• Catalog & Search – Enhancements to the search and filtering experience in the search engine, catalog update process enhancements, and improved forms for services categories, continue to improve the adoption world's largest managed B2B catalog solution.
• The Business Network home page – A new network home page included a single entry point for businesses to make it faster, more accurate, and more intuitive to join The Business Network.
• The Business Network marketing capabilities – Enhancements included additional granularity in displaying suppliers' regions served, in addition to commodity categories, certifications, and product details that allow companies to be easily discovered for new business opportunities.

Catalog & Search Growth

The scale of Hubwoo's Catalog & Search solution has eclipsed 115 million line items of customers' contract pricing, the largest managed B2B catalog solution in our industry.  This volume has grown at a CAGR rate of 29% the past 2 years, and 21% CAGR over 5 years.

Microsoft

On July 10^th, Hubwoo announced that Microsoft had selected The Business Network by Hubwoo for catalog management to improve spend compliance for internal Microsoft employees.  Microsoft contracted with Hubwoo during the quarter and are now deploying Hubwoo's catalog solutions on the desktops of 90,000+ Microsoft employees and contractors around the world.

About Hubwoo (www.hubwoo.com)

Hubwoo delivers a step change in value to procurement, accounts payable and sales processes. Powered by the worlds' busiest open and collaborative business network, Hubwoo connects companies to enable more productive B2B commerce. Through The Business Network, Hubwoo is equally focused on buyer and seller value, helping companies buy, sell and pay smarter. The Business Network connects companies to over one million businesses around the globe. 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 Microsoft, IBM, and Dun & Bradstreet.

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

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

SOURCE Hubwoo