Thomsons Online Benefits: Transformation Completed as SaaS Bookings Jump by 111%

LONDON, June 10, 2015 /CNW/ - Thomsons Online Benefits ("Thomsons"), the global benefits Management and Employee Engagement SaaS Group (Software as a Service), has published its full year results for the 12 months to 31 December 2014.

(Logo: http://photos.prnewswire.com/prnh/20150610/748352 )

Operational highlights 

  • Fully transitioned to SaaS subscription model, based around Darwin™ - flagship solution for global employee benefits management and engagement
    • Additional investment of £5.0m above and beyond significant annual technology spend, on further software innovation, technology infrastructure, partnership expansion and enterprise sales - will drive operating leverage
  • Established three routes to market - Global Enterprise, UK and Partners to add significant volumes to Darwin™
    • Made significant progress in acquiring new global distribution partners
    • 3 strategic global partnerships underway; one signed and two at contract stage
    • Shifted focus to international and large enterprise clients (60% of bookings) - notable increase in order book
    • Significant new contracted roll outs in additional territories for existing clients
  • Seven of top 10 global tech companies and six out of the top 10 global brands use Darwin™
  • Darwin™ software live in more than 70 countries

Financial highlights 

  • SaaS bookings up 111%
    • Clients contracted in 2014 driving 40% growth in SaaS subscription and recurring revenue in 2015
  • Recurring revenue up 18% and fee revenue up 19%
    • Total revenue £32.0m (2013: £36.7m) reflecting change in focus to fees and SaaS subscription based services from one-off implementation payments, coupled with focusing on larger UK and international clients
  • 97% client retention maintained
  • EBITDA £5.7m (2013: £12.8m) reflecting drop in one-off commission funded implementation revenue and increased investments across Group
  • Operating cash conversion rate 107%
  • Strong balance sheet with cash of £12.6m

Outlook 

  • Global Enterprise market valued at $10bn+
    • Total market growing annually at 7% over the last five years
    • Rest of World (non-US) grown at 22%  
  • Investments in Enterprise sales    has built a substantial pipeline of multi-national opportunities
  • New strategic global partners drive new sales, delivery and integrated client experience in both UK and Enterprise
  • Partner creating scale and opening up new channels to market, global benefits solutions being a key differentiator in the SaaS HCM market
  • Strong Partnership pipeline going into 2015 - expected to expand in 2015 to fuel further growth
  • Significant visibility for 2015 revenue and beyond - £118m over next five years, based on 97% average renewal rate

Michael Whitfield, Chief Executive Officer commented:

"In barely three years, we have completely transformed into a Software as a Service (SaaS) subscription business model, based around three routes to market - Global Enterprise, UK and Partners. We have also established Darwin™ as the leading global benefits management and employee engagement software.

"Our forward visibility has been transformed. We can now see some £118m of revenue over the next five years, with a strong average renewal rate of 97%, which of course will increase substantially each year as new opportunities are booked.

"The key indicator of the Group's underlying strength is the SaaS bookings growth of 111% driving +40% SaaS subscription revenue increase in 2015.

"Our partner channel strategy has been validated. It will enable us to scale the business and deliver wider international reach, as well as further accelerate our growth. As a result of a combination of all of these factors, and the strong appetite from new and existing clients, we expect to see significant further growth in 2015."

For the full press release please visit Thomsons website (https://www.thomsons.com/news-and-press ).

Note to Editors 

Thomsons is a global Software as a Service ("SaaS") supplier for global benefits management and employee engagement. Its mission is to use technology to revolutionise the employee benefits market.

The 400+ Thomsons People are committed to helping HR and reward professionals to deliver impactful, cost effective benefit schemes, whilst enabling their employees to engage with their benefits, throughout their lives.

The Group works with the world's leading employers to maximize the power of Darwin™ in 70 countries and 19 languages. Thomsons works with seven out of the top 10 global technology companies and six out of the top 10 global brands.

The success of the Thomsons is down to three main things: its market leading product, Darwin™; its ability to adapt in an ever-changing market; and the passionate and dedicated Thomsons People.

SOURCE Thomsons Online Benefits

For further information: Enquiries: Thomsons Online Benefits, Michael Whitfield, Chief Executive Officer, Paul Smolinski, Chief Financial Officer, +44(0)203-328-4000; Instinctif Partners, Adrian Duffield/Lauren Foster, +44(0)207-457-2020

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