There’s been a flurry of activity across all aspects of the business in the second half of the financial year.
Right now we’re in a phase of bedding down important processes and systems. These form our foundation from which we’ll expand and mature over the next decade. Our organizational infrastructure helps to guarantee our focus is on the value of our software offering and the satisfaction of our customers and our own people as we grow.
Group revenue rose to US$17m. We had significant growth across all of the operating divisions: UK and Europe 12%, US 31% and Australasia 10%. Australasia was the most profitable division but weakness in the Australian dollar in relation to the pound had an impact.
Subscription revenue grew rapidly and now represents 85% of total income providing a secure financial position for expansion.
People and culture
Our people and culture team, led by Karen Hailwood is now established with representatives in each region executing programs that are refining our people practices. We’ve always cherished the people who work at Phocas, and we are excited to fortify a company and culture to attract, engage, grow and retain the best mix of Phocas talent.
In March 2016, Karen instigated our first ever HR Review including a ‘pulse check’ and global culture measure. Karen remarked on the outstanding engagement levels shown by staff. Our people scored us on average 8/10 in every country when rating their employment experience at Phocas. They said: “a great place to work - I love the people, the product, my job and the place.” The results confirm we have a healthy constructive culture and compare very favourably to other global tech companies.
Product and platform
The Phocas 2016 software release was delivered on-schedule in April. The big tickets of this release include (in addition to hosted and on-premise options) a fully multi-tenanted cloud environment which delivers improved security, scalability, speed of release and economy to customers. Already, more than 10% of our global customer base have moved to multitenant provisioning. With the smarts of Database Designer now available, customers are building their own databases and extending their use of Phocas independently.
Customers are excited about the 35 new features and 100 plus improvements to the grid, menu, collaboration, analytics modes and graphics and charts within the software. As a cloud offering, the releases are much more regular and benefits of new features and maintenance keep flowing. An online training academy was also launched to support the use of Phocas across the base.
The e-commerce system was released in Australia in June, with plans to go live in the US and UK for Q2 2016/2017. This represents an important component of our new product offering, providing all new customers with the ability to sign up, pay and self-manage their subscription all within our fully integrated platform.
Our new branding was brought to life in a desktop website and website designed for mobiles and tablets. The online Phocas experience reflects our go to market strategy aligning with typical buyer-profiles and the associated ERPs, industries and job functions we specialise in. Our marketing team has ramped up the volume and quality of BI-related content we are promoting. Site visits, engagement and lead generation metrics are up significantly on the same period last year.
A growing global customer community is apparent with popular user events that cover: what’s new, ideas sharing and training in Chicago (USA), Sydney, and Melbourne (Australia) with more to come in Birmingham (UK), Nashville (USA) and Perth and Brisbane (Australia).
We continued to concentrate on attracting new partners and developing the channel across the spectrum from integration partners through to complete independent reseller partners.
An agreement was finalised towards the end of the financial year for a very significant strategic technology partnership between Epicor and Phocas. The availability of Epicor Data Analytics, based on Phocas software, was announced to Epicor P21 customers in Phoenix on 25 September.