TIE Kinetix (hereinafter “TIE”), the leading provider of cloud-managed Business Integration, E-Commerce, Demand Generation, and Business Analytics services today announces a further strategy update. Reference is made to earlier strategy updates on October 16th and March 14th, 2017 respectively.
The company announced on October 16th, 2017, following the successful development of FLOW - TIE’s latest suite of state-of-the-art supply chain solutions - the conclusion of a solid partnership network to bring FLOW to the market.
Today, the company announces an accelerated growth plan to further fuel the deployment of FLOW in the market. The accelerated growth plan calls for further growth of sales capacity and deeper investments in marketing, sales and support systems.
The accelerated growth plan assures maximum organic growth is achieved in the subsequent years. FLOW Partner automation modules are sold as a Software as a Service offering. This means customers pay a monthly access and usage fee of the platform. Therefore, the company guides investors not to expect significant top line growth this year or next year. However, since subscription contracts typically have a 36 month term, future revenue will be assured.
The company further announces that the accelerated growth plan calls for the deployment of the maximum amount of resources available. As such the plan leads to additional costs and expenses at the expense of operational EBITDA performance, which may be expected to decline between to 0-5% in the short term as a consequence. The effects of the accelerated growth plan, anticipated to double the company’s revenue in the mid-term, will be closely monitored and carefully evaluated in FY 2018 and FY 2019 to serve as a basis for a decision to continue with this plan in FY 2020 and beyond.
This strategy update has been pre-discussed with the company’s major shareholders in an Investor Relations Strategy Meeting on November 29th at 17.30.
About TIE Kinetix
TIE Kinetix transforms the digital supply chain by providing Total Integrated E-Commerce solutions. These solutions maximize revenue opportunities by minimizing the energy required to market, sell, fulfill, and optimize online.
Customers and partners of TIE Kinetix constantly benefit from innovative, field-tested, state-of-the-art technologies, backed by 30 years of experience and prestigious awards. TIE Kinetix makes technology to perform, such that customers and partners can focus on their core business. TIE Kinetix is a public company and has offices in the United States, the Netherlands, France, Germany, United Kingdom, and Australia.
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TIE EUR 9,70 -15ct vol. 152
