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Billion-Dollar Unicorns: Will Apptio Expand Internationally?

Mar. 08, 2018 2:15 PM ETApptio (APTI)4 Comments
Sramana Mitra profile picture
Sramana Mitra


  • What other capabilities and players is Apptio looking to add to its arsenal?
  • Both Apptio and its acquisition Digital Fuel were vendors of choice for North American enterprises.
  • Is Apptio looking at international acquisitions to help expand its geographic reach?

Researchers estimate the global

IT Business Management (ITBM) sector will grow at more than 20% annually over the next few years. The industry was estimated at a $2 billion market back in 2016. IT Business Management includes the IT Financial Management and Technology Business Management services. Bellevue, Washington-based Apptio (NASDAQ:APTI) is a leading vendor in the space.

Apptio's Financials

Apptio recently announced its fourth-quarter results that beat market expectations. Revenues for the quarter grew 18% over the year to $52.4 million, ahead of the Street's forecast of $49.7 million. Adjusted net loss of $0.06 per share also was better than the market's expected loss of $0.09 per share.

By segment, subscription revenues grew 21% to $42.6 million and accounted for 81% of total revenues. Services revenue grew 6% over the year to $9.8 million.

The company ended the year with revenues growing 17% to $188.5 million. Subscription revenues grew 19% to $155.4 million and services revenues increased 9% to $33.1 million. Non-GAAP net loss per share was $0.24 compared with a loss of $1.08 per share a year ago.

For the current quarter, Apptio forecast revenues of $51-52 million with a net non-GAAP loss of $2.5-3 million. It expects to end the year with revenues of $220-225 million and a breakeven non-GAAP operating income. Analysts estimate revenues at $51.65 million for the quarter and $223.08 million for the year.

Apptio's Acquisitions

Apptio recently announced the acquisition of Digital Fuel from global investment firm Skyview Capital for an estimated $42.5 million. Founded in 2000, Digital Fuel was a service level management provider that expanded in 2008 to IT financial management solutions. In 2011, Digital Fuel was acquired by VMware (VMW) and integrated with VMware's cloud management and infrastructure products to help provide customers with transparency and control

This article was written by

Sramana Mitra profile picture
Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual accelerator that aims to help one million entrepreneurs globally to reach $1 million in revenue and beyond. She is a Silicon Valley entrepreneur and strategy consultant, she writes the blog Sramana Mitra On Strategy, and is author of the Entrepreneur Journeys book series and Vision India 2020. From 2008 to 2010, Mitra was a columnist for Forbes. As an entrepreneur CEO, she ran three companies: DAIS, Intarka, and Uuma. Sramana has a master’s degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Full bio can be found at http://www.sramanamitra.com/bio/

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Comments (4)

rahulkapoorca profile picture
Nice article, Sramana.

Is'nt SNOW the big gorilla in this market. I was expecting the article to talk about market, competition, and risks a bit more.
Mark David profile picture
Agreed.....APTI is overbought, over valued and looks like its topping out at $30ish. Insiders keep selling as well.
D-inv profile picture
SNOW? Don't think so. SNOW is the symbol for Intrawest Resorts Holdings, Inc. SA profile on the company reads, "Intrawest Resorts Holdings, Inc. is a mountain resort, adventure, and real estate company which delivers distinctive vacation and travel experiences to guests for over three decades. It operates its business through the following business segments: Mountain, Adventure and Real Estate. The Mountain segment includes mountain resort and lodging operations at steamboat ski & resort, winter park resort, mont tremblant resort, stratton mountain resort and snowshoe mountain resort as well as interest in blue mountain ski resort. The Adventure segment includes Canadian Mountain Holidays and aviation businesses that support CMH and provide services to third parties. The Real Estate segment includes real estate development activities, as well as real estate management, marketing and sales businesses, including intrawest resort club group, intrawest hospitality management and playground. Intrawest Resorts Holdings was founded on August 30, 2013 and is headquartered in Denver,"

Could be that Sramana didn't address competitors because there really aren't any effectively.
24 Mar. 2018
SNOW - ServiceNow
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