Company Shows Strong Sales Momentum On Heels of Funding Infusion,
Adds Four New Fortune 1000 Customers
Mountain View, CAAugust 1, 2003Ketera Technologies, a provider of on demand' spend management solutions, announced today that the company registered a record quarter in terms of the value of contracts signed and solution adoption during the second quarter of 2003. The company's sales success comes on the heels of a $10 million round of funding from Kleiner Perkins, Foundation Capital and the company's founder, American Express.
Ketera's strong traction in the market, particularly with Fortune 1000 companies, speaks to the value of on demand' spend management, said Steve Savignano, Chief Executive Officer, Ketera Technologies. Our customers see clear value and a compelling ROI in the on demand' model and the Ketera Spend Management solution.
'On demand' means supply management solutions can be deployed 60% faster and at 40% lower cost than typical software solutions, said Tim Minahan, Vice President, Research, The Aberdeen Group. Ketera is among the pioneers of the on demand' movement, delivering hosted, web-native solutions in the areas of procure-to-pay automation and spending analysis. Strategic alliances with IBM and American Express and proven success with large enterprises make Ketera one to watch in the burgeoning on demand' supply management sector.
Record Quarter for Sales
Over the past quarter, five companies, all public companies with annual revenues in excess of $2 billion, have signed agreements to utilize the Ketera Spend Management Solution. This represents the strongest quarter for Ketera both in terms of customer acquisitions and in terms of booked revenue. Customers signed include a major financial services company (Capital One), a well-known airline, a commercial appliances company, a global transportation firm and a prominent media company.
Record Quarter For Solution Adoption
Use of the Ketera solution also hit record levels during the quarter. Ketera now manages the catalog maintenance process for more than 5 million products on behalf of its enterprise customers. An increase in users and suppliers, and an increase in adoption, was reflected in a 70% increase in the number of transactions conducted over the solution and a 145% increase in spend volume since the beginning of 2003.
Customers that rely on Ketera to handle the heavy lifting' tasks of spend management, such as supplier enablement, see a tremendous boost in the value and use of their solution, said Savignano. Such usage translates into savings and an even more rapid ROI. It says something that companies of the caliber of CapitalOne and Universal Studios trust Ketera to manage their supplier relationships.
Funded for Growth
During the second quarter, Ketera also closed its Series B round of funding led by Kleiner Perkins Caufield & Byers, Foundation Capital and American Express. The series was oversubscribed, with Ketera raising $10 million. The funding will be used to expand operations and the solution footprint to meet growing demand.
The quarter also saw the company expand and solidify its leadership team, with Steve Savignano being appointed Chief Executive Officer, after serving [in an interim capacity], and Rick Gustafson being appointed Chief Financial Officer, after serving as a financial consultant to the company. Ted Schlein, General Partner with Kleiner Perkins Caufield & Byers and Paul Holland, General Partner at Foundation Capital, joined the Ketera board of directors following their firms' investments in the company.
Savignano brings extensive enterprise application and supply chain experience to his position, having led product development for Manugistics, Inc., and served as SVP and general manager for the Application Products Division of Netscape Communications. Schlein is well-known for his experience in enterprise software business management, specifically for establishing Symantec Corporation in both the utilities and antivirus markets. Holland previously served as senior vice president of worldwide sales at Kana Communications and as general manager of Pure Software. His expertise in sales and operations will help guide Ketera through its burgeoning growth.
Recognized with iSource 100 Award
Ketera also was named to the iSource 100, a listing honoring those companies that stand out from the competition with their customer-driven solutions and services. iSource Business Magazine publishes the iSource 100 as a listing of the leading consultants and software/solution providers that are helping to transform companies' supply and demand chains.
We're honored to be named to the iSource 100 - it's another demonstration of the traction and attention Ketera is gaining in the market for our on demand' spend management solution, said Ruby Sahiwal, Chief Executive Officer, Ketera Technologies. Sahiwal himself was recently named to the iSource 'Pros to Know' listing.