GlobalWise Investments yesterday reported its financial results for the quarter ending June 30th, 2013.
The company's total revenues for the quarter were $581,164. This represents a 35% decrease from last year, when total revenues were $887,285. GlobalWise attributes this to decreases in revenues from software licenses with professional services and consulting services.
Second quarter gross profits were $398,801 this year compared to $597,123 for the same period last year, representing a decrease of 33%. This was primarily a result of the decrease in revenues.
GlobalWise's costs of revenues were $182,363 in 2013's second quarter and $290,162 in 2012's second quarter, representing a decrease of 37%. The lower cost of revenues is primarily attributable to a decrease in third-party costs. As a result, gross margins were 69% and 67% for 2013 and 2012, respectively - an increase of 2%.
Total operating expenses for this year's second quarter were $766,481. Last year, they were $680,062 during the second quarter, representing an increase of 13%. As a result, GlobalWise reported a net loss of $408,907 for the second quarter of 2013 compared to a net loss of $155,250 for the second quarter of 2012.
Matthew Chretien, President and CEO of GlobalWise, stated, "While there continues to be much room for improvement, I'm very pleased with certain aspects of our operational performance during the quarter ended June 30th, 2013. We continue to develop and expand our software as a service revenue stream through our expanding network of channel partners. As we continue down that path, we expect to continue to see fluctuations in revenue that reflect the net impact of channel partner-specific sales plans and priorities. While subscriber growth through software as a service delivery is a key strategic goal, our channel partners also are able to sell premise-based solutions. Thus, quarter to quarter variations in revenue sources are expected and reflect different channel partner-specific strategies and results."
"Over the long term, we expect software as a service will continue to increase as a percentage of total revenue," he continued. "As an indication of the anticipated change in our revenue stream, at December 31, 2011, we had eight customers subscribing to software as a service and at December 31, 2012, we had 231 customers subscribing to software as a service, with an increase to 357 customers subscribing to software as a service by June 30, 2013."
For more information, visit GlobalWiseInvestments.com
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