Orbus Software has celebrated the results of its performance in 2023. The company achieved several milestones during the year. It saw continued appetite for its enterprise transformation platform, with ARR growing by 30% year over year in 2023. OrbusInfinity ARR rose by 56% and its ARR is now 26 times higher than in December 2020.
The growth has been fuelled by SilverTree Equity following its acquisition by the private equity firm in 2021. The acquisition accelerated the transition to a subscription revenue model for its solution. In Q3 2023, the company also achieved profitability, a quarter earlier than planned, and with the disruption in the economy, a wise move.
Its finances were also put on a surer footing after it refinanced its debt with Golub Capital which provided a recurring revenue loan facility to support its growth financing.
Other key figures from 2023 included:
- Maintain its net revenue retention rate of 112% from 2022
- Increased its cloud customer retention to 97% (2022 – 96%)
- Increased average ARR deal value by 37% year over year
Gareth Burton, CEO of Orbus Software, commented, “Technology businesses worldwide are facing challenging headwinds, but Orbus Software’s continued growth, customer retention, and industry recognition highlight the necessity of enterprise transformation and digital blueprints in the success of organizations in all regions and industries as they become digital by default. It is a pleasure to support our customers with their digitalization efforts and to lead a team so focused on its mission to help businesses transform smarter.
“We believe that sustainable decision-making is not just a corporate responsibility but a strategic imperative at the enterprise level. The Sustainability Lens in OrbusInfinity is our commitment to helping clients navigate this essential journey. It’s about making sustainability an integral part of business transformation and operational excellence.”
Orbus also expanded its customer base significantly, seeing a 50% increase in SaaS customers. New customers included ASICS, AutoZone, and Sciensus. It saw notable growth within regulated industries, with 31% of its new customers coming from the government sector. There were also wins in finance, energy and utilities as organisations saw the value of its strategic decision intelligence platform.
Looking forward, it also completed the Australian Government’s IRAP Assessment, potentially leading to further sales in that country.
As its transition to ARR continues, Orbus has also continued to migrate its customers from iServer to OrbusInfinity, its cloud-based solution. Customers completing this migration included Alaska Airlines, Mizuho Bank, Absa, Australian Red Cross, and United Parcel Service (UPS).
Orbus Software has also expanded its partner ecosystem, adding DaCorp, DynPro, gwi.digital, RCG Global, Unipartner, and Vasa Digital Architects. Partners accounted for 34% of new deals in 2023. In 2024, it expects to expand into several new regions/locations, including the Middle East and North Africa (MENA) and Singapore.
Alex Mathieson, Chief Revenue Officer at Orbus Software, commented, “We’re excited to continue strengthening our commitment to a partner-first culture in 2024. We’re building a community of skilled partners, and we’re thrilled to use this to better support our mutual customers while providing new levels of product knowledge.”
Orbus continued to improve its platform, releasing its Sustainability Lens. This new feature adds a sustainability metric to its analysis of the strategic decision-making process. Looking forward to 2024, it will launch an expanded Sustainability Management Solution later this year.
The company was also recognised by Gartner as a Leader in the 2023 Gartner Magic Quadrant for Enterprise Architecture Tools.
Enterprise Times: What does this mean
Orbus Software is going from strength to strength. While its growth rate slowed slightly from the previous year, that it is now profitable is a key milestone for both the Orbus Software leaders and SilverTree. The question is what SilverTree wants to do next: will it look for a quick exit?
There is still room for growth, 360 Research estimated that the global Enterprise Architecture Tools market size was valued at USD 927.62 million in 2021 and is expected to expand at a CAGR of 6.46% during the forecast period, reaching USD 1350.49 million by 2027. It named Orbus Software as one of the key vendors. However, the growth rate is not massive compared to some industries, and with inflation is even less impressive. Will SilverTree look to support further expansion through acquisition?