In an announcement on LinkedIn, Dean Forbes, CEO of Forterro, gave a business update for Forterro for the full year ending December 31st. He did not reveal any specific numbers around revenue and profits. Instead, he focused on the percentage growth that Forterro achieved in 2023.
- 16% organic revenue growth. Forterro made acquisitions during the year, which would have boosted its overall revenue growth.
- Total revenue grew at 9%.
- Total Cloud and Subscription revenues increased 35% year over year. Forbes did not indicate whether this was organic, though. The main reason for this was new logos and the migration of customers from on-premise to cloud solutions.
- Customer retention remained the same as in 2022 at 95%. Forbes blamed insolvency amongst smaller customers as a primary reason for churn.
- Profits rose 11% from 2022.
Forbes commented, “The overall sales picture was solid during the period, showing strong double-digit growth vs 2022. There were good results and some excellent wins for new system sales, with deals in our existing base significantly exceeding plan – excellent signals that our customers continue to expand their use of Forterro’s software and extend the services they leverage to maximise ROI. In line with this trend.”
Forbes is optimistic for 2024. He expects growth to accelerate and also notes that the Forterro Cloud, a proposition which will unify its different products into a single platform should help drive drive. That cloud proposition includes Fortee. He noted that it will take shape in second half of 2024. Whether this means a formal launch is unclear. Initially, the cloud platform will help with cross-selling opportunities. However, it seems more likely that with that late launch, it will have a greater impact in 2025.
Growth in 2024 will see assistance from the newly acquired businesses of Profix of Switzerland and abas BS of France. The first provided around 2,500 customers in the DACH region for its ERP solution, and the latter gives it a strong professional services team to drive growth in France and other European countries.
Forbes continues to unify the different ERP vendors it acquired into a single brand. Employee retention remains high, according to Forbes. However, the company did announce redundancies at OrderWise at the start of the year. For OrderWise, the loss of a reported 37 staff out of a total of 183 was not insignificant. A fact that Forbes didn’t reveal in his update.
Forbes closed the post, noting, “It was a good 12 months, but we want 2024 to be even better again. Our Forterro team is one to be proud of, and our employees are and always will be our top priority.”
Enterprise Times: What does this mean?
The signs are positive for Forterro. When Enterprise Times last spoke to Forbes in 2021, he indicated that he was looking to forge s single brand, bringing together the disparate ERP vendors it had acquired. That journey is well underway, though it may be taking longer than he had hoped. A key milestone in this will be Forterro Cloud. The company already talks about the Forterro Cloud Platform, and it will be interesting to see what announcements there are later in the year.