It somehow slipped my radar that WCM-vendor Sitecore released their annual report back in November. Once again they managed to post record numbers with increasing revenue, profit and capital base. Revenue is now at DKK 131 million (up from DKK 79 million) with net earnings at DKK 38 million (up from DKK 18 million). The reported headcount has also gone up to more than 125 employees worldwide from 92 employees. For the whole Sitecore Group, revenue amounted to DKK 217 million, and total headcount was 200.
With growth in all markets and recent office openings in Germany and Japan, Sitecore has come along way from their start in Denmark. Apart from the purely geographical spread, it seems like Sitecore now wants to spread its wings further and grow their implementation revenue and extend their success beyond the web content management marketplace.
I spoke to Sitecore Chief Operating Officer Kim Elsass, about the annual report and recent developments. According to Kim, North America has become the largest market for Sitecore, while the traditional Danish home market is continuing to grow.
Those online professionals really interested in the numbers, will notice that in the UK and US, Sitecore is operating using partially owned subsidiaries. These send part of their profit back to Copenhagen and somewhat complicate the picture when reading the annual report. According to Kim, Sitecore is working on simplifying the ownership structure. From a buyer's perspective, we don't see this having any significant impact on day-to-day business.
Kim also confirmed that based on requests from enterprise buyers who wants Sitecore to assume more implementation responsibility, Sitecore is planning to offer more implementation services. Sitecore is still planning to keep their 700+ partners happy by not offering to do implementations without a partner, but by playing a larger role in the implementation going forward, e.g. by offering architectural reviews or performance tuning Most competing WCM vendors, e.g. Ektron, already have strong professional service divisions.
In the past we've seen examples of substantial discounts offered on Sitecore licenses, but evidently this has not hurt Sitecore financially. Perhaps to the contrary, Sitecore is using attractive license offers to keep their eco-system of agencies and implementation partners busy and happy.
Finally, the annual report and the conversation with Kim, confirmed that Sitecore is taking a quite broad view of web content management to also include online marketing, e-mail campaigns and intranet portals. More product launches are planned for the coming months.
Will Sitecore be able to continue the success and beat their own numbers once again? Feel free to share your thoughts below.