Manufacturers’ drive to maximizing product uptime and evolving servitization-centered economy fuel a 30 percent year-over-year increase in company’s recurring subscription and support revenue
STOCKHOLM, 17 April 2019 – SyncronTM, a provider of cloud-based after-sales service solutions focused on empowering the world’s leading manufacturers to maximize product uptime and deliver exceptional customer experiences, today announced it closed Fiscal Year 2018 with a 30 percent year-over-year increase in subscription and support revenue. This continued high growth of subscription and support revenues – a CAGR of 35 percent over the past five years – combined with a growing operating margin (EBITDA) validates Syncron’s strong business fundamentals, go-to-market approach and market leadership.
This significant growth highlights the important role Syncron plays as global manufacturers place more emphasis on their after-sales service organizations. In the emerging servitization-centered economy, where a growing number of companies are shifting from selling products to selling access to and the outcome those products deliver, manufacturers are redefining the way they do business and focusing on their ability to maximize the uptime of the products they offer. This shift is placing after-sales service businesses in the spotlight, as this function is critical to manufacturers’ ability to deliver maximized product uptime as a service to their customers.
“As manufacturers around the world progress on the journey to servitization, they are increasingly investing in solutions like Syncron to enable this transformation,” said Anders Grudén, CEO at Syncron. “A growing list of leading manufacturers are optimizing their service organizations to focus on maximized product uptime, shifting away from a reactive, break-fix service model to one focused on predicting and preemptively repairing equipment before it ever fails. At Syncron, we’re honored to have the opportunity to enable some of the world’s most respected manufacturing brands to adapt and thrive in this changing environment. I attribute our attractive growth and phenomenal progress in 2018 to the significant value we’re delivering to these leading manufacturers and look forward to helping more companies around the world completely redefine their after-sales service businesses.”
In addition to the increase in subscription and support revenue, other significant achievements from 2018 include:
- Further improved revenue mix to 75 percent subscription and support, a four percentage point increase compared to 2017
- Welcoming new brands to the global Syncron customer portfolio, including some of the most respected leaders within the manufacturing industry, as well as strengthening partnerships with existing customers
- Reaching key milestones within the Syncron Service Cloud, including enhancements to Syncron InventoryTM, Syncron PriceTM and launching Syncron SparkTM– a completely new, enhanced user experience – as well as significant progress in the development of Syncron UptimeTM
- Increased investments in research and development by more than 40 percent to further strengthen the company’s product leadership position
- Supporting the company’s global expansion and IPO readiness journey with a $67 million minority investment from global growth equity firm Summit Partners
Grudén continued, “To maintain our growth momentum, we will deliver meaningful business value to our growing list of customers and enable them to accelerate their shift to servitization. We have exciting enhancements coming to the Syncron Service Cloud and will be expanding our team around the world to accelerate our global expansion and better serve our customers. We are looking forward to another exciting year.”
To learn more about Syncron, visit syncron.com.
Syncron empowers the world’s leading manufacturers to maximize product uptime and deliver exceptional after-sales service experiences, while driving significant revenue and profit improvements. From industry leading investments in research and development, to providing the fastest time-to-value, Syncron’s award-winning, cloud-based service parts inventory, price and uptime management solutions are designed to continually exceed customer expectations. Top brands from around the world trust Syncron to transform their after-sales service operations into competitive differentiators. For more information, visit syncron.com.