After my post on Procuri this morning (scroll down for the entry), Tim Minahan sent along some numbers and additional background. I've posted them as a follow-up comment to the original entry, but I thought I'd put them here with a bit of additional analysis so that everyone had a chance to see them. Tim wrote that: "Procuri signed 149 contracts in 2005. The break out is as follows:
- 51 net new customers (i.e., neither Procuri nor CMSI had done business with these customers previously.)
- 40+ renewals
- 20 cross-sells/up-sells to existing customers
I should also note that Procuri deals are typically 3 years in length … And Procuri has a 95%+ customer renewal rate ... adoption and usage are the key metrics in a SaaS model. The reason? They are closely aligned with customer satisfaction, stickiness, and renewals."
I appreciate that Tim took the time to clarify the figures. In my view, the net new customer count figure is the most important metric to look at from a growth standpoint. Adding 51 new customers is impressive, but it's important to understand the order of magnitude growth Procuri will need to put itself in the Salesforce.com league (which is what they should shoot for). Currently, Salesforce is advertising that it has 20,500 customers (and nearly 400,000 users). That's a big difference. But I know Tim is up for the challenge.