StatPro is making significant changes to its business, going all out for SaaS, which includes focusing all sales activity on the cloud-based Revolution product it launched last year. StatPro Seven effectively becomes a legacy product – the company will sell it if requested but it will not be actively marketed.
Revolution is delivering. Recurring revenues have gone from zero to $0.73m (£0.47m) since its commercial launch in March 2011. Recognised revenue was modest in 2011, with most of it being recognised in 2012. Chief executive Justin Wheatley was ebullient about the shift in the business model when we spoke to him, pointing out that the revenue was achieved with just 20% of the sales force working on Revolution. It took nine months to get to 50 Revolution clients he said, compared to something like 12 years to yet to 250 for its traditional major systems, so he has reason to be happy.
As far as Q4 was concerned, recognised revenue from recurring contracts increased, but consulting sales were weaker so overall revenue was lower than expected. Cost management has enabled adjusted EBITDA to remain in line with expectations and positive operating cash flow means net debt has been reduced to £3.4m (2010: £5.5m).
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