Empower Dispatch: Procuri -- Just the Numbers, Please
Mark Morel, Procuri's Co-Founder, President, and CEO, kicked off Empower this morning by walking through some of the basics on Procuri's progress in the past few years. Having had the chance to golf with Mark yesterday, I can say that despite a good amount of natural talent on the course -- the man could drive the ball nearly 275 yards on a good swing -- it's clear he's not spending as much time with his clubs this year as last (when he got a hole in one). Indeed, the fact that Mark shanked about half of his drives yesterday signaled to me that he's spending more time in the office and closing deals than on the course. And his presentation this morning proved out my hypothesis. As a side note, my golf game is only about half as good as Mark's on a good day, so I feel in good company cracking a joke about how we shot.
But back to the numbers that matter. According to Mark's deck, Procuri's customer count has increased to 360 at this point in 2006 (up from 140 at the end of 2004). Revenue growth is currently hovering around a $30 million run rate, and 2005 revenues were just shy of $20 million, a number representing 70% year over year growth between 2003 and 2005. According to Mark, Procuri has reached "breakeven EBITDA profitability" and had positive cash flow in the first two quarters of 2006. So far this year, Procuri has signed 30 deals with new customers and maintained a 90% retention rate.
Procuri has 18,000 users globally and its TotalSource application is available in 10 languages (other modules are in the process of being translated). In terms of application usage, customers have conducted 45,000 sourcing projects with Procuri in 2006 thus far. And since the vendor's founding, they've sourced over $520 billion in goods, saving over $30 billion, according to Procuri. As witnessed by my earlier post this morning, I'm always skeptical of implemented savings numbers given my experience at FreeMarkets, but this sounds like a reasonable estimate to me.
- Jason Busch
But back to the numbers that matter. According to Mark's deck, Procuri's customer count has increased to 360 at this point in 2006 (up from 140 at the end of 2004). Revenue growth is currently hovering around a $30 million run rate, and 2005 revenues were just shy of $20 million, a number representing 70% year over year growth between 2003 and 2005. According to Mark, Procuri has reached "breakeven EBITDA profitability" and had positive cash flow in the first two quarters of 2006. So far this year, Procuri has signed 30 deals with new customers and maintained a 90% retention rate.
Procuri has 18,000 users globally and its TotalSource application is available in 10 languages (other modules are in the process of being translated). In terms of application usage, customers have conducted 45,000 sourcing projects with Procuri in 2006 thus far. And since the vendor's founding, they've sourced over $520 billion in goods, saving over $30 billion, according to Procuri. As witnessed by my earlier post this morning, I'm always skeptical of implemented savings numbers given my experience at FreeMarkets, but this sounds like a reasonable estimate to me.
- Jason Busch
You clearly have a handle on the inside of the customer and revenue model at work here (and the importance of the CMSI deal for customer count) to Procuri. But there is still some organic growth, and relative to the other 20+ vendors in the platform space (e.g., Emptoris, Ariba), Procuri does appear to be adding customers at least at the same rate -- if not faster -- than the others. Now, that does say anything to the size of their new deals relative to other providers. Certainly, Emptoris has won the game from an average deal size perspective in the sourcing + contracts world to date so far. Regadless, it should be fun to watch Procuri and the others as the consolidation and price warfare continues in the coming year. And one thing is absolutely for sure for companies: it's never been a better time -- from a functionality and price perspective -- to shop for an entire sourcing / supply / spend platform!