Expansion of Sitecore’s Cloud Portfolio Fuels Triple-Digit Increase in Subscription and Cloud Revenue
Sitecore, the global leader in experience management software, began its fiscal year for 2019 with growth momentum carrying forward from another year of exceptional market momentum and financial performance. Throughout fiscal year 2018, the company continued to capitalize on the strategic imperative for organizations to create, manage, and deliver personalized digital experiences, adding more than 300 net-new customers in the past year. Sustained growth worldwide was marked by record performance in North America in the fourth quarter of fiscal year 2018, as well as significant progress on the business model transition with a full-year increase in subscription and cloud revenue of more than 115 percent compared to fiscal year 2017. Overall, Sitecore grew annual recurring revenue more than 35 percent, representing strong double-digit growth ahead of the overall market.
“We’ve made significant strides across the entire business in the past year, starting with a clear strategy to focus our resources on customer satisfaction, expand our opportunity through strategic partnerships, and continuously deliver meaningful innovation to marketers,” said Mark Frost, CEO of Sitecore. “Coupled with strong go-to-market execution and an enthusiastic customer base, we’ve been able to gain share in both the web content management and commerce categories. We’re very excited to extend these gains in the year ahead, particularly following our acquisition of Stylelabs and the opportunity for Sitecore to sit at the strategic center of organizations’ martech stack.”
With organizations searching for new ways to out-maneuver their competition, research from Walker predicts that customer experience will overtake price and product by 2020 as the main brand differentiator. The resulting necessity for companies to digitally transform their business is driving adoption of the Sitecore Experience Cloud—an end-to-end content, commerce, and personalization platform that enables marketers to deliver engaging, personalized content across any channel, at every stage of the customer journey—which strengthened its market position in the past year via:
- Teaming with Salesforce to enable digital marketers to build personalized marketing campaigns: Shortly after announcing that it would integrate Sitecore Experience Manager and Sitecore Experience Platform (XP) with Salesforce Marketing Cloud, Sitecore delivered phase one of the Sitecore Connect software for Salesforce Marketing Cloud. The integration makes Sitecore content accessible within Salesforce’s Content Builder, streamlining the process for marketing teams to build smarter, more relevant campaigns.
- Expanding the depth and expertise of Sitecore’s digital agency partnerships: In October 2017, Sitecore announced a global strategic partnership with WPP, the world’s largest communications services group. The WPP-Sitecore Alliance brings together WPP’s existing Sitecore partners—AKQA, Cognifide, Globant, Mirum, Ogilvy, POSSIBLE, VML, and Wunderman—and creates a single team to work with Sitecore’s product, sales, and support teams to develop innovative, personalized customer experiences.
- Easing complexity for IT and marketers with new platform innovations: Version 9 of Sitecore (XP) introduced Sitecore xConnect, an API framework that allows users to integrate customer data from nearly any third-party system or channel, and Sitecore Cortex, an innovative machine learning engine with advanced algorithms to deliver real-time insights across both native and third-party customer data.
- Delivering the industry’s first net-new commerce platform since 2008: Released in January 2018, Sitecore Experience Commerce 9 is a highly extensible platform built on the latest ASP.NET Core 2.0 technology and the only cloud-enabled platform that natively integrates content and commerce functionality so brands can fully personalize and individualize the end-to-end shopping experience before, during, and after the transaction.