NEW YORK, Feb. 1, 2021 /PRNewswire/ -- Unit4, a leader in enterprise cloud applications for mid-market services organizations, today announced continued global business momentum and strong financial results for the fourth quarter and full year ending December 31, 2020.
Robust Strategy Delivering Results
2020 saw Unit4 achieve significant milestones in its three-year strategy to transform both the business and its technology proposition. Cloud bookings growth was 43% (YoY) for the full year and 82% (YoY) in Q4, with annual recurring revenue from cloud up 20% for the year. Cloud subscription revenue grew 15% to $119.9m FY 2020 and 12% in Q4 (YoY) to $29.6m. The company reported 18% growth in total bookings (YoY) for the full year, and 20% in Q4.
In 2020, Unit4 saw strong global growth including its North America business, which is seeing growing demand for the Unit4 Cloud enterprise resource planning (ERP) platform and its new ERPx solution. Unit4 announced its first global non-profit ERPx customer, Americares, in December, one of 10 customers signing in advance of its March 21 release date.
In October at the company's Experience4U event, Unit4 announced ERPx, the result of significant investment to deliver a modern, modular multi-tenant cloud ERP. Its launch coincides with growing demand from organizations for more agile ERP solutions that enable them to accelerate digital transformation in response to the impact of the pandemic. ERPx combines unrivalled functionality and tools to give organizations the flexibility to plan their long-term digital futures, based on solid foundations including:
Industry models offering 80% pre-configuration and rapid implementation so customers can quickly realize value from their Unit4 solutions.
A modern technology platform based on microservices, offering a low-code extension toolkit that ensures organizations remain agile and resilient to market changes and events.
Intuitive UX, AI and automation tools combine to create a unique, user-friendly experience.
"The pandemic has accelerated the move to the cloud as organizations rush to provide digital services and products to support their people and engage customers," said Mike Ettling, CEO of Unit4. "2020 marked a significant inflection point in the adoption of Cloud ERP. This has led to a dramatic increase in the need for innovation, not just efficiencies. It also requires a far more nimble, dynamic approach to implementing ERP software. In the midst of a global pandemic and economic disruption, our game-changing enterprise software, and people-first, service-centric mind-set, is supporting our customers to not just survive, but to thrive."
Expanded Partner Ecosystem is Supporting Significant Growth
With more than 200 customers successfully going live on Unit4 products in 2020, the focus for 2021 remains on innovation, leading edge technology and supporting customers on their digital transformation journeys.
The appointment of Michelle MacCarthy, as Global Head of Customer Success, is validation of Unit4's focus on customer success and building a global community. Unit4 has invested in a brand-new customer care ecosystem, designed and purpose built to deliver a frictionless experience. This focus has helped Unit4 transform and led to net revenue retention growth through Q4 2020 to 108%.
"Mid-market services organizations are more important to the economy now than ever. We're proud to support them to build resiliency for the future," said Gordon Stuart, CFO at Unit4. "Q4 2020 was a record quarter and despite a challenging year we exceeded many of our targets for full year 2020. As the world reacts to the challenges of the global pandemic, I am confident that we have the infrastructure, technology and ambition to continue this growth trajectory and to increase market share in our focus markets in 2021."
"Unit4 has a real opportunity to take advantage of this growing market, thanks to its modern and modular transformational product," said Mickey North Rizza, Program VP Enterprise Applications & Digital Commerce Research Practice, IDC. "Enterprise Application customers want to react more quickly to meet the demands of their people and customers, with more flexible enterprise applications. IDC believes this more modular, low-code/no code approach to application development and deployment as integral to the future of ERP."
Unit4's next-generation enterprise solutions power many of the world's most people-focused mid-market services organizations. Our cloud ERP, HCM and FP&A applications transform work to be more meaningful and inspiring through software that's self-driving, adaptive and intuitive, intelligently automating administrative tasks while providing easy access to the answers people need. Unit4 serves more than 6,000 customers in industries including professional services, public sector, nonprofit, and education.