The last couple of years, Infor seems to have been stuck at reporting 70,000 customers and the impression given is of a company cross and upselling to that group but without seeing 'real' organic growth. Infor's Q1 FY2015 results tell a different story. In summary:
- $741 million pro-forma revenue
- $192.6 million pro-forma licence revenue
- SaaS revenue $26 million
- EBITDA - $238 million on constant currency basis
- Ended Q1 FY2015 with $575 million in cash
- Software license fees and subscriptions revenue increased 22 percent
- Bookings of SaaS subscription licenses more than doubled from the same quarter in FY14
- Infor now has more than 25 million users of its cloud applications
- Customer count now stands at 73,000
The company continues to emphasize its cloud-first industry focus, noting that it has Amazon Web Services based deployments solutions for: Automotive, Aerospace & Defense, Hospitality, and Industrial Manufacturing. At this week's customer conference, it is announcing additional solutions for Healthcare which the company says is the fastest growing segment.
In prepared remarks, CEO Charles Phillips said:
“The strong results of our first quarter are only the beginning, over the next 12 months Infor will deliver a step-change in business software with our next enterprise release, Infor Xi, which is built for the cloud, using mobile-first design, and engineered with science to embrace machine-learning and big data analytics for midsize companies to multinational enterprises."
During the investor call, Phillips recognized that brand awareness remains a problem and is expanding related spend to improve brand perception. Although there was some impact on the numbers from the change in accounting date, Infor remains confident that the growth rate will continue although Phillips was cautious about predicting how SaaS revenue will remove lumpiness in reported earnings. On the upside, Phillips said he has been surprised at the number of larger customers willing to consider SaaS models.