Oniva reported that total revenue was flat at $5.4 million compared to one year ago as a result of lower report revenue. Report revenue is not expected to increase in the foreseeable future because the content previously delivered as a one-time report is now included in the subscription solutions launched in the second half of 2012. This is consistent with our objective of driving the majority of our business toward recurring revenue.
Annual Contract Value (ACV) increased by 3% to $19.1 million in Q3 2013 from $18.6 million one year ago. Growth in ACV indicates that new client acquisitions, contract expansions and improving client retention rates have more than offset the impact of client attrition. ACV represents the aggregate annual value of our subscription contracts and is a leading indicator of future revenue growth. For more information about ACV, see “About Annual Contract Value (ACV)” below.
Annual Contract Value per Client increased 12% to $5,156 per client compared to $4,610 in Q3 2012. Growth in ACVC demonstrates that an increasing number of clients have a strategic interest in the public sector. Companies within this target market typically have higher ACVC and renew at higher rates, which are key attributes of a profitable long-term client.
As of September 30, 2013, Onvia has 3,700 clients, down 9% from 4,050 clients during the same period one year ago. Our strategy is to continue to improve profitability by acquiring and managing fewer strategic clients at a higher ACVC. We believe that ACV is a better measure of quarterly sales activity than number of clients.
Adjusted EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization, and non-cash stock-based compensation) for the quarter decreased to $722,000, compared to Adjusted EBITDA of $842,000 in the same year-ago period. Net loss was $98,000 or $(0.01) cents per diluted share, compared to net income of $49,000 or $0.01 cents per diluted share in the third quarter of 2012. We expect net loss to narrow and be close to breakeven in the fourth quarter of 2013.
Source: Prnewswire.com
