Synygy Announces 21 Percent Growth in Profit for Q2, 2009
Cements Lead in Sales Performance Management Marketplace with Product Innovations and a Spate of Contract Wins, Renewals, and Expansions
Chester, Pa., August 3, 2009—Synygy Inc., the largest and most experienced provider of sales performance management (SPM) solutions, today announced positive financial results and outlined other highlights for the quarter ending June 30, 2009, which continues an 18-year string of positive quarterly results.
Compared with the same period last year, the company saw an increase in profit margins along with a 21 percent growth in profit. This was driven by:
- continued growth in subscription revenue
- an increase in subscription gross margins
- subscription revenue that continues to be in excess of 70 percent of total revenue
- total revenue growing at a higher rate than total expense growth
- recurring revenue that continues to be in alignment with total expenses
“We are very pleased with our financial performance this quarter and our continued growth in profit, despite a challenging economy,” said Mark A. Stiffler, president and CEO. “We are also pleased that we are able to use our profits to fund continued investments in developing innovative software products, unlike our competitors, which continue to lose money and lay off staff. By comparison, Synygy’s total SPM-focused staff is now over 35 percent larger than our next closest competitor.”
Synygy’s software development accomplishments for the quarter included:
- releasing the mobile edition of SYNYGY PORTAL™ an application that allows salespeople, sales managers, sales executives, and sales operations managers to manage content across the entire suite of Synygy’s award-winning SPM applications from their smart phones
- releasing a new version of SYNYGY OBJECTIVES™, an on-demand SPM application that fully automates the process of managing individual and team objectives (MBO)
- fully integrating Synygy’s suite of on-demand SPM applications with Salesforce CRM, which seamlessly merges the management of sales performance and the management of customer relationships
In sales and marketing, Synygy’s accomplishments for the quarter included:
- hiring of an additional twelve people in sales and marketing, including hiring two senior salespeople away from competitors
- securing significant competitive wins for new clients, which totaled $3.8 million in contract value
- signing contract expansions and renewals with existing clients totaling $3.2 million
Other accomplishments include:
- placing first among the Rising Stars in the International Association of Outsourcing Providers (IAOP) Global 100 list of top outsourcing providers
- hosting the Synygy Sales Performance Conference at Synygy’s worldwide headquarters
- completing the large, complex sales compensation management software implementation for McKesson Provider Technologies on schedule in six months
“Our track record of positive quarterly financial results and the continued expansion of our sales and marketing organization demonstrates Synygy’s success and cements our position as the largest and most successful vendor of SPM software and services,” said Mark A. Stiffler, president and CEO. “Looking forward, we see continued growth driven by product innovation, sales force expansion, and increased demand for a broader set of SPM solutions.”
About Synygy
Synygy is the largest and most experienced provider of sales performance management (SPM) software and services. Synygy’s SPM solutions include: sales compensation (incentive compensation, rewards and recognition, and total compensation); sales communications (web portals, reports and dashboards, and analytics, alerts, and answers); sales goals (territories and channels, forecasting and pipeline analyses, and objectives and quotas); and sales processes (reviews, recruiting and training, data repository and data processes, and workflow processes). Based in Chester, Pennsylvania, with extensive operations in Europe and Asia, Synygy has achieved 18 continuous years of success. www.synygy.com
