PARIS, Jan. 31, 2012 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading global provider of Cloud Procurement solutions powered by SAP® software, today announced financial information for Q4 2011, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.
Greg Mark, Hubwoo CEO commented: "We are pleased to see the return to growth quarter over quarter, despite delays in contract signatures. We see significant improvement in pipeline and sales activity in both Europe and the Americas. Our upgraded sales force and enhancements in the solution suite are a solid basis for both short term and long term revenue growth. The end Q4 estimates on profitability indicators confirm again that we are operating on a sound and scalable cost structure."
in EUR million
% Q4 Change 2011 / 2010 (*)
% Change 2011 / 2010 (*)
(Q3 and Q4 non Audited figures)
(*) Percentages calculated on exact numbers, not the rounded numbers shown (**) SaaS is a model of delivering technology where a software solution is hosted (cloud computing) as a service for its customers. Clients do not buy the technology but pay a subscription fee to use it.
Q4 2011 revenues showed solid quarter over quarter improvement compared to Q3 2011 (+3%), with the comparison to Q4 2010 showing a decline in total revenues (-8%).
SaaS, the recurring component of revenue, was EUR 6.9M. This represented 72% of the total revenue for the quarter.
Over the year, revenue declined slightly (-3%) compared to 2010 due to the combined effect of value losses on certain customer contracts re-negotiated in 2010 and first half 2011, and to the reorganisation process of the sales force in Europe. These effects were particularly visible in the evolution of the SaaS component of revenue.
Services revenue continued to grow steadily from a combination of both Hubwoo and SAP technology customers.
Sales pipeline on both SaaS and Services grew during the quarter in both the Americas and Europe, which has opened positive prospectives for revenue growth in 2012.
General description of the financial situation
EBITDA, EBIT and Cash
Unaudited estimates show that Hubwoo will be able to confirm a solid and very satisfactory profitability level when the audited financial statements are published at the end of March. Figures will improve compared to 2010, with EBIT only very slightly negative, as a consequence of exceptional/restructuring items in the order of EUR 1.5M.
The level of cash at the end of Q4 is estimated at EUR 5.5 M, reflecting a continued sound management of working capital and investments.
Major Q4 2011 and recent events
New Buyer Contracts
Significant new contracts during Q4 included Akzo Nobel, Caterpillar, Ecopetrol, Henkel, RNLI, Rolls Royce, and Vattenfall.
Update to Board of Directors
Robert Solomon has been appointed as a member of the Hubwoo Board of Directors. Solomon is currently founder and CEO of Software Platform Consulting, Inc., a boutique consulting firm that helps companies build multi-sided networks. Prior to founding Software Platform Consulting, Inc., Bob was Senior Vice President, Network and Financial Solutions reporting to Ariba's CEO. During his 10 years at Ariba, Bob was responsible for monetizing the Ariba Supplier Network and was instrumental in scaling the Ariba network in volume and creating incremental revenue streams through network derivative offerings. Before Ariba, Bob spent 14 years working in the food industry in various executive positions including Senior Vice President, Corporate Services at Silliker Laboratories Group, Inc. (now a Merieux Nutri-Sciences Corporation), and Vice President of Sales and Marketing for the Food Ingredients Division of The NutraSweet Company, a division of Monsanto. Bob began his career in the Chicago office of The Boston Consulting Group. Bob currently serves as Lead Director of Ariel Investments, a Chicago and New York-based money management firm, and formerly served on the board of Silliker.
Hubwoo is the world's leading provider of on-demand procurement solutions for the SAP community. The Company manages a Business Network with over 200,000 active suppliers and over 150 major international corporations as buyer customers of which 50+ are in the Global 1000. Significant customers include Honeywell, Shell, Evonik, EDF, Nokia, Monsanto, Michelin, Henkel, Statoil, The Hershey Company, CONSOL Energy, EcoPetrol, Carl Zeiss, Burton's Foods, and The Dow Chemical Company. Hubwoo has major operations in France, multiple U.S. centers, Germany, the U.K., Philippines, Belgium, and Eastern Europe. Listed in Compartment C on the Euronext Paris Eurolist. ISIN: FR0004052561, Euronext: HBW, Reuters: HBWO.PA, Bloomberg: HBW:FP