SyncronTM, a provider of cloud-based after-sales service solutions focused on empowering the world’s leading manufacturers to maximise product uptime and deliver exceptional customer experiences, today announced it closed Fiscal Year 2018 with a 30 percent year-over-year increase in subscription and support revenue. This continued high growth of subscription and support revenues – a CAGR of 35 percent over the past five years – combined with a growing operating margin (EBITDA) validates Syncron’s strong business fundamentals, go-to-market approach and market leadership.
This significant growth highlights the important role Syncron plays as global manufacturers place more emphasis on their after-sales service organisations. In the emerging servitisation-centred economy, a growing number of companies are shifting from merely selling products to selling access to accompanying services for those products. Manufacturers are redefining the way they do business and focusing on their ability to maximise the uptime of the products they offer. This shift is placing after-sales service businesses in the spotlight, as this function is critical to manufacturers’ ability to deliver maximised product uptime as a service to their customers.
“As manufacturers around the world progress on the journey to servitisation, they are increasingly investing in solutions like Syncron to enable this transformation,” said Anders Grudén, CEO at Syncron. “A growing list of leading manufacturers are optimising their service organisations to focus on maximised product uptime, shifting away from a reactive, break-fix service model to one focused on predicting and preemptively repairing equipment before it ever fails. At Syncron, we’re honoured to have the opportunity to enable some of the world’s most respected manufacturing brands to adapt and thrive in this changing environment. I attribute our attractive growth and phenomenal progress in 2018 to the significant value we’re delivering to these leading manufacturers and look forward to helping more companies around the world completely redefine their after-sales service businesses.”
In addition to the increase in subscription and support revenue, other significant achievements from 2018 include:
- Further improved revenue mix to 75 percent subscription and support, a four percentage point increase compared to 2017
- Welcoming new brands to the global Syncron customer portfolio, including some of the most respected leaders within the manufacturing industry, as well as strengthening partnerships with existing customers
- Reaching key milestones within the Syncron Service Cloud, including enhancements to Syncron InventoryTM, Syncron PriceTMand launching Syncron SparkTM – a completely new, enhanced user experience – as well as significant progress in the development of Syncron UptimeTM
- Increased investments in research and development by more than 40 percent to further strengthen the company’s product leadership position
- Supporting the company’s global expansion and IPO readiness journey with a $67 million minority investment from global growth equity firm Summit Partners
Grudén continued, “To maintain our growth momentum, we will deliver meaningful business value to our growing list of customers and enable them to accelerate their shift to servitisation. We have exciting enhancements coming to the Syncron Service Cloud and will be expanding our team around the world to accelerate our global expansion and better serve our customers. We are looking forward to another exciting year.”
To learn more about Syncron, visit syncron.com.