2015 was another excellent year for Medius. The number of customers increased by 16% and annualized contract value (ACV) increased by 31%. Recurring revenue now represents 57% of total revenue. In total, over 45 million invoices were processed in 2015 using Medius solutions for AP invoice automation. 2015 was also the year Medius got serious about being a cloud company, with the cloud solutions accounting for over 90% of new sales.
- Cloud transformation
- Divested our ERP consulting business, Medius Dynamics AB
- Per Åkerberg stepped in as the new CEO
- 16% growth in the number of customers and 31% growth in ACV
- Recurring revenue is 57% of total revenue (47% 2014) – a good step towards the long-term target of 70%
“2015 is a testament to the success of the strategy we adopted in 2014. We combine a true cloud-based solution and powerful matching functionality in a way no other supplier on the market can. In Sweden, Ascendo Invoice, our solution for small businesses, has also performed very well and broken new sales records,” says Per Åkerberg, CEO of Medius.
In addition to an increase in the sales of Medius cloud-based solutions, the number of invoices processed in the cloud has increased by a whopping 600% in 2015. Medius’ largest cloud customer now processes over one million invoices annually.
To better reflect its business model, Medius changed its revenue recognition policy in late 2014. Medius went from the classic software model, where the majority of revenue is recognized upon sale, to a cloud-centered subscription policy where revenue is recognized evenly distributed over the entire contract term.
“Not only has Medius launched leading cloud-based solutions, but it has also adopted a cloud-centered revenue recognition policy. As a result, we have shifted SEK 134 million of revenue from pre-2015 into the future. Shifting so much revenue to the future will naturally impact short-term profits, but the advantages of aligning revenue recognition with our business model outweigh the short-term financial effects,” concludes Per Åkerberg, CEO of Medius.