OutSystems has announced another outstanding year of growth. Annual recurring revenue increased by 66% in 2018 to over $100 million. It is the third year of growth greater than 50% for the Portuguese low-code company. During the year its low-code platform has assisted clients such as Toyota, Logitech, Deloitte, Ricoh, Schneider Electric, and GM Financial and it has added 60,000 developers.
Paulo Rosado, CEO and founder of OutSystems commented: “The success our customers are having speeding their digital transformation initiatives with our low-code platform is inspiring. Our customers’ success is translating into amazing results for us and for them. Demand for low-code platforms has never been higher, and we look forward to another year of tremendous growth and adoption of our platform.”
Its low code platform helped organisations such as the City of Oakland which saved $1 million through delivering increased digital services. It also helped Burton deliver an app to improve its logistics and distribution, modernised its digital services and increased digital inclusion for residents, saving $1 million. It has also helped Burton, Nimbi and the U.K. retailer Post Office deliver software projects faster and with greater impact than previous solutions.
A year of growth
During the year OutSystems raised $360 in investment from KKR and Gldman Sachs to help accelerate its growth. Now valued at more than $1 billion the company has more than 1,000 employees with fifteen offices across eleven countries. It has invested in its channel and now has 257 listed partners across the world. This has helped drive revenue growth from its channel by three times over the last year.
Its product portfolio has improved. It launches OutSystems Sentry, and Outsystems Insights platform and Outsystems.Ai which introduces AI onto the low-code platform.
Enterprise Times: What does the mean?
While OutSystems is celebrating 2018 it will naturally look forward to further growth in 2019. Part of that growth is likely to be around new geographic regions as it extends its reach. So what about an IPO? It announced a worldwide stock option plan in 2017 for its employees. However, Rosado commented in a Reuters article that: “When we got the funding, it kind of delayed the pressure for an IPO. A lot of the decisions we are making today are medium- to long-term decisions to make sure we become a many, many billion-dollar company.”
The inference is that no IPO is imminent, however, another larger company could look to acquire them. It has partner relationships with Amazon, Oracle, SAP and Microsoft. They have pockets deep enough to tempt the investors.