24SevenOffice is Europe’s first 100% web-based ERP system delivered on Cloud Computing technology and SaaS (Software as a service). The company was born in the Cloud and established in 1997 by Stian Rustad and now have over 12.000 companies as customers.
The solution is based on modules and includes everything a medium-sized business needs to manage its business in one integrated system. In addition 24SevenOffice is integrated with over 200 third-party solutions including most banks, debt collection, disposal systems, online trading, production systems, industry solutions, pre-systems, etc.
The solutions are available through a browser, tablet or mobile. The functionality the customer gets access to is automatically adapted to the right device in which the solution is accessed from.
Finance and IR
The company was established in 1997, listed on the Oslo Stock Exchange in 2007 and was taken back into private ownership in 2013 in partnership with the entrepreneurs, key employees and the investment companies ICT Group AS and IP Group AS, and others. Today these investors currently control more than 2/3 of the company and they all have a long term investment strategy.
Heavy investement in technology
The company has invested heavily in technology and is the only SaaS ERP company in the Nordic region with a solution that is feature-rich and scalable enough for large enterprises. 24SevenOffice has clients such as PwC, KPMG, Høyer and HAB Construction turnover in excess of NOK 350 million. Read more about our case studies or read our blog for cases and news.
The company has invested a considerable amount in creating a scalable and solid technology. This provides extreme scalability, where other cloud-based systems that have not taken this investment will face bottlenecks in the future. The company has always focused on being a leader in technology and the total investment amounts to more than 20 million dollars.
The company’s business model is based on a subscription model that ensures the company recurring and predictable revenues, which in turn ensure good services for our customers going forward. After years of heavy investment in technology (the green area in the figure above), the company has now reached critical mass and has a subscription base in excess of the costs.
The company is controlled by long-term investors and its investment philosophy is to reinvest in new technology, growth and international expansion as long as the company has positive operational earnings (EBITDA). SaaS companies are valued mainly by growth and technology, hence this strategy gives our owners the greatest return, while ensuring our customers the best SaaS solution in the market year after year.
Growth in cloud solutions
We notice an increasing demand from medium-sized businesses preferring cloud-based solutions. Small businesses have for a period selected to simplify its operations with cloud-based systems while the midsized companies have kept their installed systems, often on their own internal servers. The majority of companies changing their systems today want a cloud-based business application. Analyses from respectable IT analysts such as Gartner and IDC expects explosive growth in cloud solutions in the future.
24SevenOffice had a turnover of approximately USD 6.1 million in 2015 and an operating profit before depreciation (EBITDA) for 2015 of USD 0.3 million. The company’s business model is based on a subscription model that ensures the company recurring and predictable revenue. The underlying growth in recurring subscription is in excess of 25% annually. At the end of Q1 2016, the company had annual subscription revenues of approximately USD 6.8 million and 12.000 companies.
Valuation SaaS companies
24SevenOffice AS is a privately owned company and there are no official share price of the company. The last known Nordic comparable transaction is at 11 times revenue. For 24SevenOffice, which are growing at approximately 25% – and has annual revenue of more than USD 7.5 million – this will give a comparable valuation of a market value in excess of USD 82.5 million.
Buying and selling shares
Around 30% of the shares are not controlled by the founders, key employees and long-term investors. The Company has a stock service that assist existing and new investors in the purchase and sale of shares. Are you interested in knowing more about investment opportunities or would like an IR presentation please contact ir@24SevenOffice.com or call +47 247 00 000.