Procurement news – vendor latest from Hubwoo and Emptoris


Hubwoo, "a leading global provider of Cloud Procurement solutions powered by SAP® software", and quoted on the Paris stock exchange, announced their annual results last week. Top line growth was 9% - respectable if not outstanding - with total revenue of EUR 37.6 million for 2010. Services revenue was up 27%, and EBITDA (at 4 million Euros) and earnings showed significant improvement. The second half of the year was particularly good - although a note  of warning was sounded about the first half of 2011:  "we remain cautious on Q1 2011 revenue expectations, as a consequence of the combination of seasonality in supplier revenues and delays in new projects signatures and their implementations".

The supplier community grew impressively by 85% over 2009 to 130,000; indeed, most of the metrics look like they should lead to a top line growth of rather more than 9%, so presumably some component was less impressive  - licence revenue rather than services I assume? 

Anyway, the firm appears to be operating from pretty solid foundations; with the cost base well aligned to the business performance. The challenge now is to push growth, and it looks like the US may be the main driver:  "During the year, Hubwoo signed 28 new technology contracts with buyers.  By the end of 2010, the total number of buyer technology customers amounted to 150, an increase of 25% during the year. Sales in 2010 were exceptionally strong in the Americas".


I'm off to Barcelona to participate in the Emptoris 'Empower Europe 2011" event for the next couple of days. The recent past has been good and exciting for the firm - except for this event last year being cancelled because of the Icelandic volcano! (Remember that?) I'm interested to meet their very top people (for the first time), see how the Rivermine (Telecomms Expense Management)  integration is going; and maybe get some hints about their future corporate plans (acquisitions? IPO? More VC funding?)

But I'm most interested in meeting some senior customers and potential customers and finding out what is top of their agenda in terms of both the wide Emptoris product offering - and procurement more generally. Is optimisation the thing that turns them on? Or getting procurement into non-traditional service categories? Category-specific intelligence and collaboration?  Or using spend analytics in new ways to drive value? Assuming wi-fi has come to Barcelona, I'll be writing a couple of blogs on the run as it were, so look forward to sharing experiences.

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