WANTED Technologies Accelerates Focus on Direct Sales; Announces the Termination of a Reseller Agreement
Company will focus on direct sales to achieve revenue growth for "big data" solutions in the Human Capital Management sector
QUEBEC, March 27, 2014 /CNW Telbec/ - WANTED Technologies (the "Company") (TSX-V: WAN), announces that it will be expanding its sales organization to focus on direct sales efforts in the market for "big data" analytics in the Human Capital Management sector. Additionally, the Company, which also sells its products through resellers, is announcing the termination of one of its reseller agreements, effective June 22, 2014.
The termination of the reseller agreement, which the reseller initiated, will reduce the Company's recurring revenues in the short to medium-term until the WANTED sales organization establishes a direct business relationship with new, direct clients. In the latter part of 2013, the Company began to add sales reps, and it will continue to add to the direct sales staff in the coming months.
Historically, the majority of WANTED's revenues has been derived from its direct sales channel. Since 2010, however, the Company has licensed portions of its proprietary big data asset to resale partners, some of which have incorporated WANTED's data into their own products. As the market for human capital analytics has heated up, features in some of the products incorporating WANTED's data have begun to conflict with WANTED's own products.
"We are seeing demand accelerate in the market," said Bruce Murray, WANTED's President and CEO. "It makes sense for us to work with partners and resellers in some contexts, but in others, we would prefer to work directly with the client rather than through an intermediary."
The increase in staffing with four additional sales reps in the direct sales organization and the end of one reseller agreement reflect both the increasing opportunity in the market and the recognition of potential for channel conflicts. Revenues from the terminated reseller represented $1.0 million (US) of the Company's recurring revenue base reported at the end of the most recent reported quarter ending December 31, 2013.
The Company has a diversified customer base and reported record revenues during the second quarter. In that quarter, the recurring revenue base achieved a year-over-year growth of 25%. The year-over-year growth rate of the terminating partnership was only 4% of that growth, while other direct and reseller segments represented 21%.
For the first two quarters, WANTED's revenues from all reseller partners represented 36% of total revenues, while revenues from direct sales represented 64% of the total. The reseller agreement which is terminating represents approximately one-third of the revenues associated with resellers.
WANTED provides data analytics in the Human Capital Management sector. Its products draw upon its proprietary database of more than one billion records that provide Supply and Demand metrics to support decision-making in the US and Canadian Staffing and Corporate HR sectors.
About WANTED Analytics™
WANTED Analytics™ helps recruiting organizations make better decisions faster with real-time business intelligence on jobs, employers, and talent. Analytics™ brings together, for the first time, years of hiring demand and talent supply data to create a true talent intelligence platform for hard-to-fill positions.
Clients in the staffing, HR, RPO, media, and government sectors use WANTED Analytics™ to find sales leads, analyze employment trends, gather competitive intelligence, forecast economic conditions, and source hard-to-fill positions.
About WANTED Technologies Corporation
WANTED Technologies (TSX-V:WAN) provides real-time business intelligence for the talent marketplace. Founded in 1999, the company's headquarters are in Quebec City, Canada, and it maintains a US-based subsidiary with primary offices in New York City. WANTED began collecting detailed Hiring Demand data in June 2005, and currently maintains a database of more than 1 billion unique job listings. For more information or to sample WANTED's services, visit www.wantedanalytics.com.
WANTED is also the exclusive data provider for The Conference Board's Help Wanted OnLine Data Series®, the monthly economic indicator of Hiring Demand in the United States.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Any statement that appears prospective shall not be interpreted as such.
SOURCE WANTED Technologies Corp.For further information:
Mr. Bruce Murray, President and CEO
Tel: (212) 242-6140
Mr. Martin Auclair, VP Finance and CFO
Tel: (418) 523-6663, ext. 337