Annual Contract Value (ACV) increased 7% to $21.8 million vs. Q1 2014. Annual Contract Value per Client (ACVC) up 16% to $6,729 vs. $5,789 in Q1 2014 New Client ACVC down 14% to $14,240 vs. $16,577 in Q1 2014
Adjusted EBITDA of $192,000 in Q1 2015 compared to $778,000 in Q1 2014; Q1 2015 includes $435,000 in unusual expenses. Net loss of $477,000 in Q1 2015 vs. $89,000 in Q1 2014
2015 Operational Initiatives
In 2015, Onvia is executing three initiatives intended to build on the results achieved in 2014 and further accelerate growth in subscription revenue and Adjusted EBITDA.
The first 2015 initiative is to further accelerate year over year bookings growth. This growth is planned in three key areas: sales to new customers, contract enhancements with existing customers and improved retention of our existing customers. The measure of success for this initiative includes the overall growth in new client bookings, growth in ACV and ACVC, and improvement in dollar retention.
Overall new client bookings, including contract enhancements, increased 19% in Q1 2015 compared to the same period last year. The increase in bookings reflects our continued effort to accelerate new sales and contract enhancements within our target market of companies with a national or regional focus on the public sector. New client ACVC decreased 14% to $14,240 from $16,577 in Q1 2014. Management anticipates new client ACVC will fluctuate from period to period based on the mix of product levels included in acquisition bookings for a particular period.
The second 2015 initiative is to enhance the existing Onvia platform and provide improved content which further aligns to customer needs. This initiative includes the continued rollout of Onvia 7 search features to our target market clients. We measure the success of this initiative through the effectiveness of product releases and the impact on ACVC and dollar retention.
The third and final 2015 initiative is to improve the existing information technology infrastructure as a means to reduce complexity, accelerate product development and reduce costs long-term. We continue to focus this initiative on three major areas. The first focus is moving to an open source search technology which will increase our capacity for search and improve search speed. We have identified the technology of choice and have started the architecting work. Secondly, we’ll be changing database structures to allow for faster more agile product enhancements in the future. The technology of choice has been identified and we intend to release the first phase of this project in Q2 2015. Finally, we are addressing areas where data capture can be automated to allow for cost effective scaling of data aggregation. We do not anticipate annual capital expenditures to increase over historical levels as a result of these technology improvements.
“Our subscription metrics, such as new client acquisition and dollar retention, are pacing per plan, and the unusual expenses that we incurred over the last few quarters should be behind us,” stated Hank Riner, Onvia’s Chief Executive Officer. “We expect Onvia 7 to have a positive impact on the subscription metrics as it is phased in over the course of 2015.”