SAN FRANCISCO, Nov. 6, 2018
Expansion of Sitecore's cloud portfolio fuels triple-digit increase in subscription and cloud revenue
SAN FRANCISCO, Nov. 6, 2018 /PRNewswire/ -- 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 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:
Coinciding with the increased expectations for marketing organizations to deliver a consistent and personalized digital experience across channels of customer engagement, the market opportunity for Sitecore is staggering. Gartner predicts that "for end users, differentiated value and day-to-day operational excellence start with a satisfying digital experience. Resulting demand will drive end-user spending for digital experience platforms (DXPs) at a compound annual growth rate (CAGR) of 14% to reach a size of $18.5 billion in 2021."i Sitecore believes its market strategy, pace of innovation, and ability to ensure customer success is why the company earlier this year was positioned as a Leader in the Gartner Magic Quadrant for Web Content Management—for the ninth consecutive year—and also was positioned as a Leader in the Gartner Magic Quadrant for Digital Experience Platformsii.
i Gartner, Forecast Snapshot: Digital Experience Platforms, Worldwide, 2017; Bianca Granetto, Yanna Dharmasthira, Fabrizio Biscotti; 6 November 2017
ii Gartner, Magic Quadrant for Web Content Management, Mick MacComascaigh | Jim Murphy, 30 July 2018. Gartner, Magic Quadrant for Digital Experience Platforms, Jim Murphy | Gene Phifer | Gavin Tay | Mike Lowndes, 17 January 2018. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Sitecore is the global leader in digital experience management software that combines content management, commerce, and customer insights. The Sitecore Experience Cloud™ empowers marketers to deliver personalized content in real time and at scale across every channel—before, during, and after a sale. More than 5,200 brands––including American Express, Carnival Cruise Lines, Dow Chemical, and L'Oréal––have trusted Sitecore to deliver the personalized interactions that delight audiences, build loyalty, and drive revenue.
Sr. Director, Public & Analyst Relations at Sitecore
Sitecore Media Relations
Sitecore, Own the Experience, Sitecore Experience Cloud, Sitecore xConnect, Sitecore Cortex, Experience Platform, and Experience Manager are registered trademarks or trademarks of Sitecore Corporation A/S in the USA and other countries. All other brand names, product names or trademarks belong to their respective holders.