Sweet times for SugarCRM
SugarCRM has announced its Q1 2014 financial results and they show yet another quarter of growth. In the first three months of 2014, SugarCRM signed up 785 new customers and delivered 38% improvement in their billable revenue.
One of the biggest growth areas for many CRM vendors has been the SME as they look to the cloud for solutions that will enable them to compete with large businesses. This is where SugarCRM has built its reputation but now it is beginnig to move into areas that were previously dominated by the likes of SalesForce, Oracle, IBM and SAP.
In 2013 SugarCRM announced it had received $33m to fund its move into the enterprise business segment and that has had an impact. Asana Wellness, Informa Research Services, Avidia Bank, Renault Sport and Samsung Techwin were among their enterprise gains as a result. In Q1 2014, they have added Reebok along with several US universities to their customer list.
Their customer base, however, continues to be dominated by the SME and it will be interesting to see what SugarCRM does next in order to strengthen its enterprise portfolio. It is already investing in building out its partner portfolio and plugins. SugerExchange and SugarForge are booming with a lot of developer and partner engagement. This bodes well for SugarCRM because one of the keys to attracting new CRM customers is support for the applications that they are using.
Also during Q1 2014, SugarCRM announced the appointment of Bill Hunt as Chief Product Officer. In their financial statement, SugarCRM has chosen to play up the fact that five of the six companies Hunt has worked for were acquired by much bigger competitors. Is this a statement of direction for SugarCRM? Probably not but it does raise the question of whether they can continue to grow at the current rate organically or whether they are fast becoming an acquisition target.