SAN FRANCISCO--(BUSINESS WIRE)--SugarCRM Inc., the company that enables businesses to create extraordinary customer relationships with the most innovative and affordable CRM solution in the market, today announced continued success with the close of its third quarter. In Q3, SugarCRM marked 20 impressive consecutive quarters of growth, more than 460 new customers and a 29 percent year-over-year increase in annual recurring revenue.
“The third quarter was a break-out quarter for SugarCRM in the enterprise segment,” said Larry Augustin, SugarCRM CEO. “In Q3, we saw the average new deal size up 70 percent over Q2. Annual recurring revenue (ARR) from customers above $100,000 grew 81 percent year-over-year, and ARR from customers above $1 million grew 44 percent year-over-year.”
“SugarCRM has also built a culture of execution excellence,” continued Augustin. “Based in part on the strong billings momentum, SugarCRM was cash flow positive for the nine months ending September 30, 2014. This is in addition to being cash flow positive for the full year in 2013. Q3 also marked the second quarter in a row in which our GAAP operating loss (including stock compensation expense and other non-cash charges) was less than $1 million.”
Third Quarter Sees Major Global Alliances and International Expansion
SugarCRM continues to re-define the CRM market and empower businesses to create extraordinary customer relationships through an individualized CRM user experience that is highly innovative, flexible and affordable. Customers and partners are embracing this unique differentiation and teaming with SugarCRM to optimize their business.
Deutsche Telekom Partnership
In September, SugarCRM signed a global reseller agreement with Deutsche Telekom to initially deliver enterprise-ready CRM for security-conscious companies across central Europe. Deutsche Telekom’s systems solutions unit, T-Systems, will deploy and fully manage a Sugar software-as-a-service (SaaS) from its data centers in Germany which comply with the strictest interpretations of local data privacy regulations.
“By becoming a SugarCRM SaaS provider, Deutsche Telekom is leading the DACH market by delivering the most scalable and user-friendly CRM service in the region that allows for local customer data to be stored in-country and managed entirely by T-Systems," said Clint Oram, co-founder and CTO at SugarCRM. "This is the future of business software services outside of the United States."
The deployment focuses on Germany, Austria and Switzerland with plans to expand the partnership to other regions in 2015.
Latin America Expansion
SugarCRM is driving additional growth by bolstering its presence in key growth markets. In the third quarter, the company welcomed Enrique Perezyera as SugarCRM’s Senior Vice President and General Manager of Latin America and Caribbean. Based in Mexico, Perezyera brings an impressive list of achievements from a number of leading, high-profile companies—including IBM, HP and Informix. Most recently, he spent nearly nine years at Salesforce.com where he served as president of Latin America and Caribbean and built the regional office from scratch into a multi-hundred million dollar business. Prior to Salesforce.com, Perezyera spent a number of years as senior vice president of Latin America at PeopleSoft, where he and his team closed the largest CRM deal in the company’s history with the government of Mexico.
“SugarCRM has built a strong trajectory combining innovation, value and a unique focus on the individual throughout the customer journey," said Augustin. "Our strong financial results, combined with enterprise customer and partner success, marked the third quarter as a milestone in our business. The CRM market remains ripe for innovation, continues to grow rapidly and SugarCRM is on an exciting path for growth that is outpacing a thriving market.”
Growing Industry Recognition and Accolades
In July, SugarCRM was named a “Visionary” in Gartner’s 2014 Sales Force Automation Magic Quadrant for two consecutive years. This placement was the fifth consecutive time SugarCRM appeared in the Sales Force Automation Magic Quadrant. The following month, SugarCRM was awarded top recognition across five categories of the 2014 CRM Market Awards and named a leader in the mid-market and enterprise categories. SugarCRM’s customer Redglaze Group was also honored with the acclaimed 2014 CRM Elite award for its use of Sugar and impressive ROI across the entire organization.
Blue Chip Customers
Additionally, SugarCRM signed 462 new customers in Q3. The latest global customers include Sanmina (Nasdaq NM: SANM), a leading integrated manufacturing solutions provider; Samsung Canada, a global leader in consumer electronics; Spinnaker, a world-class supply chain services company; and Klean Kanteen, the leader in providing sustainable solutions to single-use plastic.
SugarCRM enables businesses to create extraordinary customer relationships with the most innovative and affordable customer relationship management (CRM) solution on the market.
By placing the individual at the center of its solution, SugarCRM is putting the “i” in CRM and empowering people at all levels of an organization to better understand and engage with customers. Based in Silicon Valley, SugarCRM is backed by Goldman Sachs, Draper Fisher Jurvetson, NEA, and Walden International. More than 1.5M individuals in over 120 countries rely on SugarCRM. To learn more visit SugarCRM or follow @SugarCRM.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, SugarCRM performance, expectations, plans, prospects, and opportunities, including, but not limited to, our expectations regarding our products, market demand, and market share growth.
These forward-looking statements are based upon the current expectations and beliefs of SugarCRM’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including, but not limited to: customer demand for SugarCRM’s products, SugarCRM’s ability to develop, deliver and support its products, and SugarCRM’s ability to manage growth in its global expansion . All forward-looking statements made in this press release are based on information available to us as of the date thereof, and SugarCRM disclaims any obligation to update these forward-looking statements.
NOTE: SugarCRM and the SugarCRM logo are service marks of SugarCRM Inc. Third-party trademarks mentioned are the property of their respective owners.