Synygy Announces Strong Growth in First Quarter
Chester, Pa., May 4, 2011 —Synygy Inc., the largest and most experienced provider of sales compensation management and other sales performance management (SPM) software and services, today announced positive quarterly results for the period ending March 31, 2011, which featured continued success regarding new clients, organizational growth, revenue growth, and profitability.
“Synygy remains the vendor of choice for companies where the design, automation, and management of their sales compensation plans are critical to their success,” said Mark A. Stiffler, Synygy’s president and CEO. “The fact that we also streamline a broad set of other sales operations processes makes that decision even easier for them.”
In the first quarter, Synygy continued to expand its cross-industry footprint, signing agreements with numerous new clients, including:
- one of the world’s largest bottling and beverage distribution companies with 3500 people on variable pay
- a large diversified wholesale distributor of industrial products in the US and Canada with 1800 plan participants
- a leading document management services company with 400 salespeople
Synygy’s implementation services business sustained a high rate of growth, with average increases versus the prior year of 66% over the past four quarters. Growth in both implementation services and subscription revenue drove another consecutive quarter of profitability.
Looking forward, as of April 1, booked revenue for the second quarter was already 2% higher than actual revenue in the second quarter of the prior year (with a full quarter of selling opportunities remaining), and booked revenue for 2011 was already 9% higher than during 2010 (with nine months of selling opportunities remaining). As a result, very strong growth is forecast for the second quarter and for the full year.
Because of new client growth and a very favorable sales forecast, Synygy grew its professional services group by 29% during the first quarter versus the same period in the prior year. Synygy also added people to its software development department, further expanding its lead in having the largest software development organization focused on SPM solutions. In addition, Synygy increased its sales staff, with a particular emphasis on Europe and Asia.
Additional highlights for the first quarter include:
- completing the implementation of a hosted SPM solution to manage commissions and related sales processes for a high-volume commercial distributor of business products and supplies
- delivering a system for managing sales compensation and additional workflow processes for a leading supplier of commercial paper and packaging
- rolling out two distinct sales compensation management systems for a multi-divisional home building supply manufacturer
- completing the company’s first “co-habitation” project, which adds a robust sales compensation reporting and analytics solution to a competitor’s calculation engine
- hiring 16 employees who previously worked for Synygy, an indication of the positive relationships that Synygy maintains with its alumni, its strong corporate culture, and the exciting and challenging work that Synygy does for its clients
- earning a “Hot Vendor’ rating in Ventana Research’s 2011 SPM Value Index
- garnering multiple finalist nominations in the 2011 CODiE® Awards for Business Software
- being named to The 2011 Global Outsourcing 100® list of top service providers for the third consecutive year
For more information on Synygy’s sales compensation management and other SPM software and services, visit www.synygy.com.
