UNIT4, said last week that demand for its cloud-based solutions, which include not only the FinancialForce.com division but also its core Coda and ABW products, continue to gain momentum with increasing interest from potential clients. Even with this strategic change in the business, license revenue increased in Q3 by more than 25%. UNIT4’s Q3 revenue amounted to €110.7 million, an increase of 11% compared to revenue in Q3 2011.
FinancialForce.com, the cloud applications company in which UNIT4 is the majority investor, again showed a strong performance and almost doubled its revenue over Q3 compared with the same period last year.
The company said that the growing momentum of cloud computing is now evident across most of UNIT4’s products and revenue recognition is consequently changing steadily from upfront fees towards subscription. UNIT 4 says this may have a larger impact on the estimated EBITDA range for Q4 if large deals typically seen in the last few months of the year are sold as cloud solutions on a subscription basis instead of “as license”, since in the subscription scenario only a very small part of the deal can be recognized.