Synygy, the largest and most experienced provider of incentive compensation management (ICM) and other sales performance management (SPM) solutions, today reported growth in both its software and services business units and continued profitability for the third quarter ending September 30, 2012.
Success during the quarter was driven by growth in overall subscription revenue and an increase of 108% in new client implementation services revenue versus the prior year. To manage a robust sales pipeline and to increase sales capacity for its new Optymyze™ software platform, the company expanded its sales force by 11 to a total of 65 salespeople.
Highlights of quarterly new client sales wins included a particularly large increase in divisions of existing clients and major new pieces of business with four very large companies with thousands of salespeople:
• a commercial bank in the Middle East;
• a distributor of water management equipment;
• a developer and manufacturer of medical devices;
• a manufacturer and distributor of hydraulic parts and systems.
Synygy’s software business unit—the largest software vendor in the ICM market—develops and delivers a range of ICM and related SPM cloud services. Although some software revenue was from up-front license fees in the third quarter, the software group increased recurring revenue by 20%. Highlights of software group activity in the third quarter include:
• launches of multiple applications on the new Optymyze™ technology platform, including the core compensation plan management application, which is designed for tablets and other touch-enabled devices, but also works on laptops and PCs;
• increases in the software business unit headcount to 199, of which 168 are in software development and 31 are in software support services, which includes data center operations;
• relocation of the software development center in Iasi, Romania to the Palas Iasi, with sufficient space to hire an additional 60 developers.
“Having successfully delivered all of the components of Optymyze necessary for delivery of the new platform to all new clients, I am very pleased with our software group,” said Mark A. Stiffler, Synygy president & CEO. “With the ability to deploy our highly-mobile cloud services anywhere in the world, including from our own data centers in a multi-tenant environment or on dedicated hardware in any data center, our software business is positioned for continued success.”
Synygy’s professional services business unit—the largest services business in the ICM market—provides a range of implementation services and post-implementation support and outsourcing services. It also saw excellent results for the third quarter with subscription increases, new clients, and organic growth within existing clients. Synygy’s services group highlights for the quarter include:
• managed configuration services subscriptions growth of 178% versus the prior year;
• increased productivity of the professional services staff by over 10% while maintaining headcount of the services business unit at over 200 people;
• seven implementations completed for some of world’s largest companies across multiple industries, including medical devices, pharmaceuticals, distribution, banking, and manufacturing.
“The new Optymyze compensation plan management product is easily implemented with no formal training by our clients, by third parties of our clients’ choosing, and by our global and regional partners,” added Stiffler. “However, clients continue to see value in the wide range of SPM capabilities that our services group offers, which provide value well beyond just ICM, and we continue to make investments in our services group, with expansion expected in the fourth quarter.”