GlobalWise Investments and its technology-focused wholly owned subsidiary, Intellinetics, jointly reported the company’s financial results for the fiscal year ended December 31, 2013.
Total revenues for the 12 months ended December 31, 2013, were $1.5 million, a decrease compared to $2.7 million for the same period in 2012. The company attributes the reduction primarily to decreases in revenues from consulting services and software licenses with and without professional services.
Overall gross margins of 62 percent for full-year 2013 represent a decrease of 2 percent compared to gross margins of 64 percent for the comparable 12 months of the year prior. GlobalWise reported a net operating loss of $2.1 million, an increase of 8 percent compared to a loss of $1.9 million in full-year 2012.
Matthew Chretien, president and CEO of GlobalWise, detailed Intellinetics’ performance over the year and provided insight into the new business model’s focus on long-term recurring revenue versus sizable upfront fees.
“In 2013, Intellinetics made significant efforts into refining and re-designing every detail of our channel partner strategy from a technology, process, tools, business model and market positioning perspective,” Chretien stated in the news release. “This process consumed significant time and resources across the board but was crucial to improving revenue-generating effectiveness. … MarketCommand™ is a go-to-market approach that will become the de-facto standard for solution delivery into the SMB market, whose buyers place a premium on simplicity, minimizing disruption, and affordability when considering new business solutions.”
Chretien continued, “While feedback has been positive and new orders have been received under MarketCommand™, moving from premise-based one-time sales to the new low-cost, cloud-based entry point for recurring sales is a difficult transition from a revenue perspective. We certainly experienced that revenue contraction in 2013. However, as the number of active subscribers continues to grow, recurring revenue increases. As we certify other software providers to participate in MarketCommand™, we can benefit from additional revenue share from solutions such as device monitoring, power management and remote network management which can leverage the same infrastructure as IntelliCloud™ for activation.”
Moving forward the company will focus on recruiting high-quality resellers. As GlobalWise strengthens its reseller base, more IntelliCloud™ customers will activate and boost recurring revenue generation as storage consumption grows. According to Chretien, already several new companies have lined up to partner with the company under MarketCommand™ in Q2 of 2014.
To view a video example of the MarketCommand™ with IntelliCloud™ in action, visit http://services.in2communications.com/download/dms/
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