A slight resurgence of news last week with Yext appointing Tzi-Kei Wong as Chief Product Officer. Leapwork has been selected by global retailer Bestseller to automate testing across its point of sale and eCommerce processes. Salesforce has announced a major design update for Slack that will roll out over the coming months. Cleo published details of how, together with ERP vendor VAI, it has helped a leading meat supplier, the AVA Companies (AVA), automate and integrate its different systems, including VAI ERP.
Pick of the week
RingCentral made a series of announcements this week. First was its Q2 2023 results.
- Total revenue increased 11% year over year to $539 million.
- Subscriptions revenue increased 11% year over year to $514 million.
- Annualized Exit Monthly Recurring Subscriptions (ARR) increased 12% year over year to $2.22 billion.
- Mid-market and Enterprise ARR increased 13% year over year to $1.37 billion.
Vlad Shmunis, RingCentral’s founder, chairman and CEO, commented, “It was another solid quarter, as revenue and operating margin were both above our guidance. We remain focused on delivering healthy growth and expanding profitability while also continuing to invest in innovation to bolster our leading position in the cloud communications market.”
It also announced that Tarek Robbiati, a member of the RingCentral Board of Directors since December 2022 and Chief Financial Officer and EVP of Finance and Strategy of Hewlett Packard Enterprise, has been appointed as the Company’s Chief Executive Officer, effective August 28, 2023.
Vlad Shmunis, the Company’s current Chief Executive Officer, will transition to the role of Executive Chairman, focusing on driving the Company’s strategic product vision and innovation.
RingCentral also announced its intent to offer, subject to market and other conditions, a $400 million aggregate principal amount of its senior notes due 2030 (the “notes”) in a private offering. Later in the week, it priced its offering of $400 million aggregate principal amount of its 8.500% senior notes due 2030.
RingCentral also announced the expansion of its artificial intelligence (AI) platform, RingSense, across its portfolio. It also launched RingCX, a native, intelligent contact centre. RingCX is easy to deploy and use solution combining RingCentral’s flagship unified communications (including message, video, phone, SMS, and fax) with contact centre and generative AI capabilities.
Acquisitions
Accenture has acquired Anser Advisory, an advisory and management company for infrastructure projects in the United States.
After receiving all required regulatory approvals, IBM announced it had completed its acquisition of Apptio Inc. The acquisition allows clients to derive additional value through the powerful combination of Apptio and IBM.
Appointments
Analytic Partners announced the appointment of Jack McClunn as Chief Financial Officer.
AuditBoard appointed Haibei (Happy) Wang to its executive leadership team as AuditBoard’s Chief Development Officer.
Boomi appointed Sean Wechter as Chief Information Officer (CIO), overseeing Boomi’s critical IT infrastructure, security, data science, and enterprise systems.
Calabrio has appointed Dillon Nugent as Chief Marketing Officer (CMO).
Ceridian has appointed Brian Donn to Head of Revenue, Asia-Pacific Japan (APJ) effective immediately, and Managing Director, Asia-Pacific & Japan (APJ), effective October 1, 2023.
Cortical.io has expanded its sales team in Austria. It appointed sales expert Thomas Eichinger as Head of Growth and Tim Juchert as Senior Sales Manager for the DACH region.
Cyara has appointed appointment of Rishi Rana as President. He will be responsible for Cyara’s product strategy and all customer-facing operations, including global sales, marketing, customer support, customer success, and professional services. He will be advancing the company’s global revenue growth.
Kofax has appointed Jeff Hartnett as the new Senior Vice President of Sales for the Americas.
Salesloft announced the appointment of Sam Loveland as its Chief Customer Officer.
Sisense has appointed Ayala Michelson as the Chief Products and Technology Officer and General Manager of its Israeli operation.
Synopsys, Inc announced the appointment of Rob Painter to its board of directors.
Business
Alation Inc, the data intelligence company, announced the launch of its fifth data centre in Tokyo, Japan.
Brillio announced a partnership with Google Cloud to build cutting-edge solutions for financial services and healthcare organizations using Google Cloud’s generative AI capabilities.
Creatio announced a partnership with Wolf Logic. This partnership will allow Wolf Logic health and manufacturing clients to take advantage of Creatio’s AI-powered no-code platform for workflow automation and CRM.
Globant announced a five-year, USD 1 billion investment plan in Latin America to strengthen its regional presence. Globant partnered with Medocity, a leading digital health solutions and SaaS platform provider.
Infosys unveiled its sonic brand identity, the auditory equivalent of its blue visual identity and logo. As a strategic brand asset, the signature Infosys tune will reinforce the company’s core identity and brand purpose – ‘to amplify human potential and create the next opportunity for people, businesses and communities when stakeholders interact with the brand.
Infosys Foundation announced the commencement of the second edition of its cultural festivals across eight cities in the country, in association with Bharatiya Vidya Bhavan, to promote India’s visual and performing arts.
INQDATA announced a partnership with KX, maker of kdb+, the industry’s most trusted Data Timehouse and the KDB.AI vector database.
NTT has been recognized by Amazon Web Services (AWS) as its first Direct Connect Delivery partner in Thailand after an extensive technical assessment. With this recognition, NTT Thailand can now offer businesses a direct and secure global connection to the AWS cloud via NTT’s Bangkok data centres.
Oracle announced the new Oracle Cloud for the Australian Government and Defense in Canberra. Offering over 100 services, the new region is a complete and highly secure hyper-scale cloud platform that allows customers to build and run applications.
CIQ, Oracle and SUSE today announced their intent to form the Open Enterprise Linux Association (OpenELA), a collaborative trade association to encourage the development of distributions compatible with Red Hat Enterprise Linux (RHEL) by providing open and free Enterprise Linux (EL) source code.
Syncro announced the addition of a new Team plan for MSPs. Syncro is providing this new premium tier plan to equip growing MSPs with more advanced features and onboarding support that will help them better manage their team’s task list and business growth.
Terzo announced a new partnership with Varisource, the global technology savings program. This strategic collaboration aims to revolutionize data extraction for Varisource customers throughout their document ecosystem, empowering them to uncover significant cost savings across their entire business.
Tipalti announced it has expanded its Alliances Program, adding more than 50 new partners, dramatically growing Tipalti’s global distribution and implementation reach. Some of its newest partners include RSM, Klear, Net at Work, Zift Solutions and Swaarm.
Versapay announced that Tigunia, a Microsoft Gold Certified Partner specializing in enterprise resource planning (ERP) deployments, IT managed services, and business intelligence consulting and technology, has been named a Versapay Premier Partner.
Upland Software announced that Panviva, the omnichannel knowledge platform built for highly regulated industries, is now available on the Genesys AppFoundry, the industry’s largest dedicated marketplace focused on customer experience solutions.
With the finalization of new small business lending requirements announced by the Consumer Financial Protection Bureau (CFPB) in late March, Wolters Kluwer Compliance Solutions is offering U.S. lenders a range of targeted, consultative services to foster and advance compliance under the new rule, which implements Section 1071 of the Dodd-Frank Act.
Savex Technologies announced its partnership with Zoho Corporation, a leading global technology company.
Customer
The state of Colorado is leveraging Avalara Tax Research to provide the state’s tax rates and rules to its more than 300 sales tax jurisdictions.
Digital Workforce will provide the North Savo welfare region with a significant migration solution to transfer and archive old customer data from the North Savo social care system to Kela’s (the Social Insurance Institution of Finland) centralized Kanta social care service and archive administrative data in North Savo’s archive. The solution uses the Robocop platform based on the open-source Robot Framework and Atostek’s ERA service.
Health and social care providers across the West Midlands have started integrating cancer registry data from patients diagnosed with cancer across the region into the InterSystems shared care record, known as InterSystems HealthShare.
John Good Group has chosen to deploy MHR People First’s core HR Module and several other modules, including payroll, talent, recruitment & onboarding, learning and Power BI.
Subaru Corporation has expanded its work with Kinaxis to improve demand forecasting operations, optimize inventory and increase operational efficiency.
o9 Technologies announced the completion of the first phase of transforming the demand planning capabilities of Shurtape Technologies, LLC, an industry-leading manufacturer and marketer of adhesive tape and consumer home and office products.
Salam (previously known as Integrated Telecom Company) has selected Oracle Cloud Scale Monetization and Oracle Unified Operations solutions—combined with Oracle CRM Sales to drive 5G innovation across the Middle East.
Academic Partnerships has implemented Hire2Retire from RoboMQ to help integrate its HR system ADP and Hybrid AD (Active Directory) to automate employee lifecycle management and identity provisioning. Redzone turned to Hire2Retire, a leading pre-packaged integration solution by RoboMQ, to manage the integration between ADP to AD.
Nathan’s Famous, Inc. will invest in the SOCi CoMarketing Cloud as its central platform to enhance local visibility, bolstering the brand’s presence within local communities and maximizing revenue potential for franchise and corporate locations.
Financial Reports
Accela
Accela announced its results for fiscal 2023. It increased SaaS ARR by 31% and saw a 36% increase from recurring accounts. Netretention was 117%.
Gary Kovacs, chief executive officer of Accela, commented, “Accela’s record double-digit growth this past fiscal year demonstrates our leadership position at the heart of government and as a trusted partner accelerating modernization efforts across the industry. Quarter after quarter, we continue to meet our customers where they need us to be – at the center of their most critical operations – so they can focus on building vibrant communities and stellar resident experiences.
“Our robust cloud platform, deep customer relationships, extensive product expertise, and growing partner community form an unshakable foundation to fuel accelerated growth and even better address the needs of state and local government today.”
Alteryx
Alteryx published Q2 2023 results.
- Revenue was $188 million, an increase of 4%, compared to revenue of $181 million in Q2 2022.
- GAAP gross profit for Q2 2023 was $155 million, or a GAAP gross margin of 82%, compared to GAAP gross profit of $151 million, or a GAAP gross margin of 84%, in Q2 2022.
- GAAP loss from operations for Q2 2023 was $(116) million, compared to GAAP loss from operations of $(95) million for Q2 2022.
- As of June 30, 2023, Alteryx had cash, cash equivalents, and short-term and long-term investments of $748 million, compared to $432 million as of December 31, 2022.
Mark Anderson, CEO of Alteryx, Inc, commented, “Customers are demonstrating a strong commitment to Alteryx as they face an increasingly dynamic macro environment, as evidenced by robust and consistent gross retention and renewal rates in Q2. As we look to the second half of 2023, we are reinforcing our commitment to improving profitability, while also sustaining a high pace of platform innovation with Alteryx AiDIN, our generative AI and machine learning technologies, as well as cloud-connected technologies.”
During Q2 2023, Alteryx announced a workforce reduction plan to reduce operating costs, improve operating margins, and continue advancing our ongoing commitment to profitable growth, primarily impacting our sales, marketing, and general and administrative organizations.
Kinaxis
Kinaxis reported its Q2 2023 results.
- Total revenue grew 31% to US$105.772 million
- Gross profit 63.670 million, up 28% year over year
- Q2 SaaS revenue grew 25% to US$64.104 million, adjusted EBITDA1 margin of 14%
- Record number of quarterly customer wins pushes customer base over 300
- Annual recurring revenue grows 22%
John Sicard, president and CEO of Kinaxis, said, “We had a record number of customer wins, an increasing win rate against competitors, and the highest amount of incremental subscription business won in any second quarter in Kinaxis’ history.
“While we need to remain appropriately cautious about the global economy, we continue to see a persistent urgency to transform supply chain management practices. Siloed approaches are giving way to a concurrent, end-to-end orchestration model and Kinaxis remains alone in its ability to deliver on that vision.”
Konsolidator
Konsolidator announced its H1 results and lowered expectations for 2023 and 2024.
- Revenue in Q2 2023 amounted to DKK 4.7m, an increase of 17% compared to Q2 2022 and for the first half of 2023, revenue increased by 20%, which is in line with expectations.
- EBIT loss for Q2 2023 amounted to DKK 3.6m compared to DKK 6.7m for Q2 2022. In H1 2023, EBIT loss was DKK 6.5m compared to DKK 13.2m in H1 2022.
- On June 30, 2023, the equity amounted to DKK 2.0m compared to the negative equity of DKK 11.4m on December 31, 2022.
- Cash and cash equivalents amounted to DKK 13.1m on June 30, 2023.
- After the reporting date, Konsolidator signed loan agreements which finalized the capital restructuring with the repayment of the convertible loan to Formue Nord.
CEO Claus Finderup Grove commented, “We have spent a lot of management time on the capital restructuring process which now will be converted into hard core sales work. I am excited to be back talking to potential customers and we have an important task securing that our free trial customers become actual customers.”
The net ARR growth is impacted by a high churn for the remainder of 2023 and by a lower-than-normal sales conversion rate, leading to Konsolidator revising the expectations for 2023. Konsolidator expects an ARR at the end of 2023 in the DKK 20-21m (previous guidance KK 21-23m).
Finderup Grove said, “A coincidence of unfortunate circumstances means that we have to lower our expectations for 2023. Looking back we have underestimated the impact of downsizing the organization and management time spent on the capital restructuring.
“However, we remain positive about the future as our pipeline continues to be strong and we are starting to see positive effects from our free trials. Furthermore, we have reasons to believe that the churn will return to an acceptable level as we have hired two new employees to focus on our current customers. We are still a growth company.”
N-able
N-able published results for its second quarter ended June 30, 2023. Key figures included the following:
- Total revenue of $106.1 million, representing approximately 16% year-over-year growth, or approximately 17% year-over-year growth on a constant currency basis.
- Subscription revenue of $103.4 million, representing approximately 16% year-over-year growth or approximately 17% year-over-year growth on a constant currency basis.
- GAAP gross margin of 0% and non-GAAP gross margin of 84.8%.
- GAAP net income of $4.5 million, or $0.02 per diluted share, and non-GAAP net income of $16.3 million, or $0.09 per diluted share.
- Adjusted EBITDA of $34.9 million, up approximately 26% year-over-year, representing an adjusted EBITDA margin of 9%.
John Pagliuca, N-able president and CEO, said, “Our strong second quarter highlights the power of our model, the differentiation of our offerings, and our relentless focus on empowering our MSPs. The positive relationship we have with our partners allows us to innovate to meet their needs and ensures we are investing to give MSPs the tools and support to provide mission-critical IT services over the long term. By staying focused on creating value for our stakeholders, we are able to realize the potential of our business model.”
Syniti
Syniti published a business update for H1 2023. Kevin Campbell, CEO, Syniti, said, “Like others, we are seeing customers exercise a bit more caution with their spending – whether that be in extending buying cycles or bringing more folks into the decision-making process. That being said, there is an uptick in the sense of urgency to get started with critical business transformation efforts.
“We’ve had major deals in the first half of this year from customers realizing that complex digital transformation requires the specialized data expertise that only Syniti can bring to the table. We’re thrilled to be expanding with our current customers and gaining new large enterprise clients; our built-for-purpose team of data experts will continue to deliver successful business outcomes with every project.”
Highlights included:
- Syniti added 11 significant multinational customer logos in the Q2
- Software bookings annual contract values (ACV) increased 20%, and cloud annual recurring revenue increased 49% YoY
- Twenty-two clients have adopted the company’s new cloud-native Syniti Knowledge Platform (SKP), also resold by SAP as SAP Advanced Data Migration & Management by Syniti, since becoming generally available in early 2023.
- The company celebrated 10 major go-lives of multi-year transformation projects.
- Services revenue grew by 5% in the first half of 2023 versus the first half of 2022.
Teradata
Teradata reported its Q2 2023 results.
- Public cloud ARR of $414 million, up 77% as reported and 76% in constant currency YoY
- Total ARR of $1.523 billion, up 10% as reported and 9% in constant currency YoY
- Q2 total revenue was $462 million, up 7% as reported and 10% in constant currency YoY.
- Q2 recurring revenue was $371 million, up 8% as reported and 10% in constant currency YOY.
Steve McMillan, President and CEO of Teradata, said, “Our broad-based momentum across the business generated strong financial results, including 77% Cloud ARR growth, 10% increase in Total ARR growth and EPS that exceeded our guidance. We are pleased with the strong adoption and growth of Teradata VantageCloud, as customers see that our complete cloud analytics and data platform is differentiated and generates value in this new world of AI.”
Product
Aderant announced a transformative update to its time-tracking software, iTimekeep. This update introduces features powered by Aderant’s AI, MADDI, designed to improve time tracking accuracy and ensure successful bill payment.
Cezanne announced a brand new integrated software module: Compensation Planning.
Creatio announced the addition of several new solutions to the Creatio Marketplace. They include fifteen vertical and horizontal solutions.
GoodData announced GoodData for VS Code. This new update is designed to revolutionize how analytical solutions are developed and managed, embracing the Everything as Code philosophy.
As part of the continued roll-out of our enterprise-ready AI and data platform, WatsonX, IBM plans to host Meta’s Llama 2-chat 70 billion parameter model in the watsonx.ai studio, with early access now available to select clients and partners.
Oracle announced Oracle Compute Cloud@Customer, a rack-scale cloud infrastructure that enables organizations to use Oracle Cloud Infrastructure (OCI) compute services anywhere. With Compute Cloud@Customer, customers can develop, deploy, secure, and manage workloads using the same software stack as OCI in deployments as small as a single rack.
Outfield published a roundup of the feature enhancements to its core CRM features over the last few months. It has added Product Kits and Product categories, 3 new discount types, expanded last activity tracking and several other minor improvements.
Planet Crust released Corteza version 2023.3.3. The release includes minor improvements, user experience improvements and several bug fixes.
Pigment added new features to its platform, a dependent dropdown in List Properties and new text widget operations: Open and Filled.
Prismatic launched its embedded integration platform. It allows SaaS teams to easily build integrations, manage them at scale, and enable customers to self-service those integrations.
Sigma announced the de[ployment of a GDPR-compliant in AWS Europe, located in Frankfurt, Germany, with full support for Regional Disaster Recovery.
