Strategic sourcing provider signed 43 new agreements in 2003, maintained 100 percent renewal rate
Atlanta — February 20, 2004 — e-Sourcing specialist Procuri this week reported a record fourth quarter in 2003 and pointed to a significant year-over-year increase in revenue and customers as evidence of the company's solid footing in this competitive market segment.
Privately held Procuri said that its 2003 revenue increased 80 percent year-over-year from 2002 levels. At the current level of prospective customer interest and pilot conversion rates, the company is forecasting similar revenue and earnings growth for 2004.
Procuri said it signed 43 new customers to long-term agreements in 2003, with 22 companies tapping the solution provider for its strategic sourcing offering during the fourth quarter of 2003 alone. These new customers included AMCOR, Cox Enterprises, Food Lion and Marathon Ashland Petroleum LLC. With more than 100 customers in total, Procuri said it currently ranks among the largest global strategic sourcing providers.
Since its inception, Procuri has yet to lose a customer that was previously signed to a long-term agreement, according to the provider. In 2003, 15 long-term agreements were scheduled to expire, but all these customers elected to extend their contracts with Procuri, including the Naval Supply Systems Command (NAVSUP) and PolyOne. Many of those renewals covered multi-year agreements, according to Procuri.
In addition, Procuri said it gained significant customer traction in Europe in 2003, equating to more than 25 percent of Procuri's total revenues. The provider said it plans to invest more resources in the international markets, with expansions eyed for sales and customer support efforts in Germany and France in 2004. Additionally, Procuri will support simplified Chinese, Japanese and Dutch languages this year.
The e-sourcing market has been broiling recently, with Ariba buying FreeMarkets at the end of 2003 (see related story) and Verticalnet buying Tigris Consulting earlier this month (related story). Procuri itself acquired SupplierInsight, a supplier management software and services company, last November (related story).
But in an interview, Mark F. Morel, Sr., Procuri's president and CEO, said that the much-anticipated — and perhaps over-hyped — consolidation in this market segment has not slowed his company's pace. "We're adding customers right and left, and we're adding new sales and support people to handle that," he said. "We think people have seen us as being very stable. Customers are aware of what we deliver in terms of [return on investment], they want it, so they're acquiring it in this 'on-demand' model [that Procuri offers]."