Unit4 Ends Breakthrough Year with Record Cloud Growth

• 14% annual growth (YOY) in total bookings with cloud bookings growth up 20% (YOY).
• 25% cloud subscription revenue growth in 2019 to $92.2m (€83.6m), with growth of 27% in Q4 over prior year to $25.7m (€23.2m). Total revenue for the year increased 5% to $412.8m (€372.2m).
• Unit4 saw the strongest order growth in the Professional Services vertical market globally, and significant growth in North America and Nordics markets.
• Major mid-market customer wins accelerate pace of growth with significant deals secured with RSM, Galileo Global Education, Expleo, Logan University, Stichting SBOH, LoopMe and MCIS Life.
• Company on track for a ‘strong growth year’ and identified as company to watch by Nucleus Research

Unit4, a cloud leader in people-based software, today announced strong financial results, organic growth and record customer wins for the fourth quarter of the fiscal year 2019. Total bookings hit 14% YoY growth and cloud bookings YoY growth was 20%. Cloud subscription revenue grew 25% in 2019 to $92.2m (€83.6m), with 27% growth in Q4. Total revenue increased by 5% to $412.8m[1] (€372.2m).

Unit4 provides people-centric enterprise cloud applications for ERP and HCM, primarily to mid-market service sector organizations. In the last year the company has undergone significant change following the appointment of Mike Ettling as CEO in April 2019, with a revitalized leadership team in post, bringing a strong cloud pedigree.

This includes the appointments of James Shand (ex SuccessFactors) as Global Head of Cloud Transformation, Chris Richards (ex Workday) as UK and Ireland Regional President, Andrew (Andy) Brockhoff (ex Anaplan & SuccessFactors) as North America President, Billy O’Riordan (ex AppDynamics) as Senior Vice President, Professional Services, and Beata Wright (ex Ultimate Software) as EVP/Global Head of Partner Ecosystems.

Unit4 also completed the acquisition of Intuo, a fast-growing provider of engagement and talent enablement solutions. It was named a ‘Hot Company to Watch in 2020’ by Nucleus Research.

Thomas Dechilly, CTO at Galileo Global Education "Scaling our education network will be a significant undertaking, especially given the competitive landscape we operate in. Moving fast will be critical and we are confident Unit4’s market leading student system will support a differentiated offering to us as we embark on this journey"

Mike Ettling, Unit4 CEO said “Our business is undergoing a radical transformation and with that comes our ambition to be a world leader in people focused technology. 2019 has been transformational. We’ve renewed our leadership, invested in our people, refreshed our brand, and mapped out our values - defining what we stand for and how we can add value to our customers. 2020 is a critical year for us, not least because we want to accelerate our transition to the cloud and address people productivity holistically in every organization we partner with. Put simply we want to put rocket boosters on our growth plans and achieve some great things this year"

Gordon Stuart, CFO at Unit4 added “Q4 2019 was a record quarter for Unit4 - both for SaaS and License, and for both new and existing business. Bookings are up significantly, and we are seeing growth in our core vertical markets. Overall profitability is very healthy. It’s imperative that we build on this performance for the year ahead - targeting our growth firmly at mid-market, people focused organizations.”

[1] Based on unaudited financial accounts. Excludes results from Unit4 Bedrijfssoftware B.V., a company serving the accountancy, SME and payroll markets in the Benelux.