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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