NetDimensions, the provider of performance, knowledge and learning management systems, looks like it has closed off another strong year with revenues heading significantly upwards while losses reduce. Both are positive signs that its expansion plans are delivering results and it is making progress with the May 2013 plan that includes the goal of $50m revenue in 5 years.
For the year ending December 21 2013, revenue is expected to be “substantially higher” yoy and exceed market consensus of $15.8m. The company reported $13.5m in FY12, which was a 10% yoy rise, so current indications for the year just closed suggest revenue will be up a minimum of 17%. It is not clear as yet how much is organic as the company expanded during the year into the healthcare market (see here), but it is an impressive level of growth. It also has good visibility with invoiced sales of $17.6m. H2 was particularly strong for the company, with invoiced sales up 20% yoy. With 67 customers added during the year, it is bringing in a lot of new business.
The overall results are encouraging because the company is transitioning to the SaaS model – SaaS revenue was up 36% to $6.1m. It is keeping costs under control which is even more encouraging – losses are expected to be lower than expected and it ended the year with no debt. SaaS learning, performance and analytics have performed well and will be prime revenue growth area for the company which makes sense given the market-wide demand for data insight. There was no specific mention of how the new healthcare division was performing however so that will be something to watch out for when the full results are released.