Monday, november 1, 2004

A tripled turnover this year has resulted in a profit of 5.5 million kroner (€730,000). This is a key figure in the annual account which the CMS provider Sitecore has just closed. International ventures and a broader recognition from customers all over the world are some of the reasons behind the extensive growth of Sitecore. And CEO Michael Seifert sees no indications of the growth curve flattening out.  

An explosive growth in all areas. This is the short version of the recently published Sitecore annual account which, for the third consecutive year has black figures on the bottom line. An increase in turnover from approximately six million kroner (€795,000) last year to approximately 18,5 million kroner (€2,450,000) this year is an indication of the economic strength Sitecore has attained. But the profit has also grown – an increase to approx. 5.5 million kroner (€730,000) this year is a expansion rate only a few companies can equal.  

“The result is better than expected, but this is positive in more than one way; if one goes through the figures, the indication is that almost our entire turnover comes from the sale of licenses – apart from a minor income from courses. In practice this means ours is ‘pure’ growth, which is supported by a broad and continuous supply of customers,” said Sitecore CEO, Michael Seifert, who also notes that the business model of Sitecore still is a success:  

“This has simply proved that our unambiguous partner strategy has paid off. We have, due to this distribution model, been able to scale our business in an optimal way – both here and abroad. In this manner we secure our leading position by concentrating primarily on development – which then makes the product easier for the partners to sell,” continued Michael Seifert.  

The expansion continues

Sitecore has, since the beginning of 2001, seen an almost explosive growth in the demand for their Content Management System. Initially Sitecore had to struggle to get attention on the market, but Sitecore has thoroughly overcome this challenge, a fact proven by a series of successes this past year. A case in point is the prestigious order from Virk.dk, who chose Sitecore this spring as their future platform for their much discussed portal. Furthermore after the entry to the American market, Sitecore very quickly began selling solutions to a series of significant customers.  

“We are clearly seeing that our customers are contributing to creating a positive aura around our name. The operational stability and flexibility in our CMS has created a ‘buzz’ that spreads; we frequently experience that new customers choose Sitecore because they have talked to existing customers. And with an increase in the number of references, the number of ambassadors for the Sitecore solution is also increasing. This is a fact that we benefit very much from,” says Michael Seifert, who adds that the recognition is not exclusively from existing customers: recently Sitecore was nominated ISV-partner of the Year by Microsoft due to the technological advances of the system, and the very swift implementation of new technologies by Sitecore. 

Goodwill and recognition

“Of course, this type of recognition cannot be seen directly in the accounts, but there is no doubt that it increases the goodwill and enhances our reputation which, again, results in increased interest from the market,” concludes Michael Seifert. He refers to the fact that the success and growth so far is due to the continuous attention to technological development, and not excessive marketing spend.  

The company is still expanding internationally, and efforts are focussed on establishing the company on the major markets abroad. Up to this point Sitecore has opened offices in the USA and Germany, but new partner agreements are continuously being concluded in countries where Sitecore has not previously been represented. The business model has until now been an undisputed success and so will also be considerably extended in the future.