- Subscription revenue up 5% to $5.6 million compared to Q2 2015
- Total revenue increased 2% to $6.0 million compared to Q2 2015
- Strategic Account Annual Contract Value (ACV) increased 5% to $17.4 million vs. Q2 2015
- Annual Contract Value per Client (ACVC) up 10% to $7,590 vs. $6,883 in Q2 2015
- Adjusted EBITDA of $439,000 in Q2 2016 compared to $653,000 in Q2 2015 **
- Net Loss of $125,000 in Q2 2016 vs. net income of $80,000 in Q2 2015
** Adjusted EBITDA is a non-GAAP Financial measure see press release
Onvia’s President and CEO, Hank Riner, stated: “Our target market requires better intelligence and insight which requires content that is currently not available in the public domain. To acquire this content, we launched Onvia Exchange in the second quarter. Onvia Exchange allows government procurement professionals to use Onvia intelligence to improve their bidding process in return for providing content directly into the Onvia platform. Now that Onvia 7 is complete, we are in an excellent position to scale content collection cost effectively using automation, machine learning and natural language processing.”
Second Quarter 2016 Results
- Subscription revenue for the quarter endedJune 30, 2016 grew 5% to $5.6 million compared to the same period in 2015. Subscription revenue includes revenue earned from our target market of Strategic Accounts, Small Business (legacy accounts) and revenue generated from the new Small Business solution. The Small Business solution, which officially launched in early 2016, is a self-serve solution for small businesses offering a limited geography Onvia The growth in subscription revenue is reflective of growth in ACV and an increase in Small Business revenue. ACV is a leading indicator of subscription revenue and excludes subscribers to the self-serve Small Business solution.
- ACV for Strategic Accounts grew 5% in the second quarter of 2016 over the same period last year. ACV for Strategic Accounts continues to grow at a slower rate than last year as a result of a continued focus on identifying a primary solution for new clients as opposed to initially selling an entire solution suite. While the primary solution approach negatively impacts ACV growth in the short term, it should improve long term ACV growth due to more contract expansion opportunities across a client base with stronger adoption of theOnvia Small Business (legacy accounts) represents clients outside of our target market that have been subscribers since before 2011, when we originally transitioned away from the small business market.
Source: Onvia Press Release