Stibo Systems Sees Business Accelerate as Pandemic Paralysis Subsides
Master Data Management company ends first half of financial year exceeding planned order intake by 165 percent
Stibo Systems, a global leader in Master Data Management (MDM) solutions, ends the first half of its financial year (May until October 2020) exceeding planned order intake by 165 percent. The company reports to have seen a dramatic shift in business in the wake of Covid-19: From almost a standstill to a V-shaped recovery since August with demand rocketing in selected industries which have the most potential to benefit from the increasing trend towards digitalization. This includes retail, financial institutions – and manufacturing.
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“When the pandemic forced many countries into a lockdown, a lot of businesses seemed paralysed. Managers were reluctant to make decisions. Investments which had originally been planned for the first half of the calendar year were postponed,” says Jesper Ejlersen, CEO of Stibo Systems. He continues: “While we have seen an increased interest in our offerings since the beginning of our fiscal year, we can report a significant acceleration since August: As companies have been forced to pivot and realize the importance of having their data organized, accurate and shared, they are investing heavily in MDM. As a result, despite the pandemic our Q2 sales, from August until October, were record breaking. Delivering sales of 112 million DKK it was the best quarter in the history of Stibo Systems, with 37 percent of new customers coming from manufacturing. Within the industry there is a growing understanding of how much better manufacturers like Carl Zeiss or Saint-Gobain can work seamlessly with vendors, suppliers, their customers and third parties when they have installed a proper MDM solution.”
Stibo Systems’ CEO regards this development as transformational in nature. “When the pandemic started it became obvious very quickly which companies suffered least and which benefited. For example, big online retailers, who had more mature master data management solutions in place already, were able to immediately respond to increased market demand. Manufacturers have learned from this and are accelerating their MDM, as they appreciate the impact that MDM has on their ability to digitalize their businesses.”
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The Stibo Systems CEO reports on another trend that has been accelerated by the pandemic, cloud offerings. “The proportion of new customers choosing a software-as-a-service master data management solution has increased to 88 percent – compared to 60 percent in the same period of last year. Thus, our subscription-based revenue has risen by 19.5 percent compared to last year,” says Mr. Ejlersen. “And since August, more of our existing customers than ever before are transitioning from their former perpetual, on-premises licenses to a subscription-based license model delivered through software-as-a-service. All in all, the cloud gives companies more flexibility and makes IT staff more effective and efficient.” Mr. Ejlersen points out that this was also important feedback Stibo Systems received from customers they were welcoming to their growing customer community, which they just met with virtually during a “Connect” conference.
“In our former fiscal year, we continued our significant investments in the transition to a software-as-a-service business model. Now, we are seeing the benefits. With our recurring earnings related to software increasing by 36 million DKK compared to the same period of last year, we are almost at break even in earnings after six months expecting to be profitable for the full year, as this increase will continue,” Mr. Ejlersen concludes.
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