- Demandware's recent financial performance has been impressive. From 2009-2013, revenue grew at a CAGR of 48.4% while gross margin increased 45.4 percentage points.
- In 2014, Demandware has been able to increase their customer base, deal size, and ARPU. Although, management did noticed some deal slippage in both Q1 and Q2.
- Large deal slippage has impacted revenue growth. Yet deal slippage isn't the biggest issue, the company will be facing in the enterprise market.
- A significant portion of enterprise customers still manage their own ecommerce platform. This will limit the potential enterprise market. Additionally, Demandware is falling behind several large ecommerce vendors.
- Demandware's investors are expecting a significant amount of growth. However, the company is going to have a difficult time competing, closing, and converting customers in the enterprise market.