Infor has announced its third quarter results producing solid growth despite a couple of setbacks during the quarter. Revenue was up 6.2% year on year to $719 million (pro Forma) with a steady growth in SaaS subscription revenues. There were some interesting updates from Charles Phillips, CEO, Infor as he covered a range of topics during the quarterly call.
Infor hurdles the blips
This was a solid quarter of growth marred only by two things outside of Infor’s control. The Asia figures were impacted by both currency exchange rates and the seasonal dip in GT Nexus revenues. In the US SaaS revenues were negatively affected by the loss of Golfsmith as a customer. Golfsmith filed for bankruptcy in September 2016 and was sold at auction to Dick’s Sporting Goods for $70 million the following month. Companies will always suffer a certain amount of churn and this was outside Infor’s control.
Infor’s SaaS revenues were over 55% of total license revenue in the quarter. In total licence revenues grew 11.% year on year to $184.6M. Subscription revenues increased more than 30% and perpetual license revenues fell by just 4.9%. Interestingly as Infor converts perpetual license customers to cloud-based solutions the revenue increases by a ratio of 2:1 for each customer according to Infor. As they convert more companies to SaaS subscriptions Infor’s performance will therefore continue to improve. They are bringing in eight figure deals and it will be interesting to see whether their traditional competitors start to acknowledge them as a threat during their own investment calls.
Strong growth in verticals
For Full Story, Please click here.