Onvia Logo download (1)Onvia, Inc. (NASDAQ: ONVI) announced its financial results for the second quarter ended June 30, 2014.  Subscription revenue is up 4% to $5.0 million compared to Q2 2013.  Total revenue increased by 1% to $5.6 million compared to Q2 2013.  Gross margin of 83% in Q2 2014 vs. 82% in Q2 2013.  Adjusted EBITDA down 2% to $714,000 vs. $726,000 in Q2 2013.  Net loss of $117,000 in Q2 2014 vs. $88,000 in Q2 2013

Onvia is focused on executing four operating initiatives in 2014, which are intended to leverage the recent changes in its go-to-market strategy and further accelerate growth in subscription revenue and Adjusted EBITDA.

The first initiative is to accelerate the acquisition of new clients within the defined verticals of the new target market.

Mr. Riner continued, “In the second quarter, total acquisition bookings grew 9% over the second quarter of last year and bookings from the new target market more than offset the impact of eliminating the multi-state opportunity. The higher ACVC and first year retention for target market clients continue to validate our new target market and translates into an improved business model.”

The second initiative is to improve first year client retention and renew tenured, long term clients within the target marketThe third initiative is to maximize growth within the existing client base.  In Q1 2014, Onvia chartered a team that specializes in increasing clients’ investment in the Onvia solution.  The results continue to be encouraging; contract upgrades increased 49% in the second quarter of 2014 compared to the same period in 2013.

The fourth and final 2014 initiative is to continue to drive enhancements to the existing Onvia platform and to provide innovative new solutions that make Onvia a strategic business partner with its clients.  Onvia successfully converted its clients from a static PDF guide to an online guide with much greater functionality and an enhanced user experience.

Onvia is completing its development work on Onvia 7, which should significantly improve the usability of the Onvia platform, and drive greater relevancy of search results for clients. 

In regard to the upcoming launch of Onvia 7, Mr.  stated that, “Onvia 7 enhances our clients’ experience in two areas.  First, because our content will now be tagged and structured, our clients should receive a more relevant set of search results.  Most of the “noise” will be removed from their search experience.  This is especially important for our clients since we have one of the most comprehensive public procurement database available.  Our clients need the ability to mine Onvia’s vast database to extract only what is relevant for them. Secondly, the platform will provide visual aids that will help the client choose the right words and terms for their search.  Greater relevancy and ease of use are two powerful benefits for this strategic release.”  Onvia 7 will be commercially available before the end of 2014.

Source:  Prnewswire.com