Revenue rises at Ariba, but falls at Hubwoo

29 July 2011

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31 July 2011 | Adam Leach

E-procurement providers Ariba and Hubwoo had contrasting performances in terms of revenue over the past three months, according to financial statements published by both firms.

Total revenue at Ariba rose to $121.9 million (£74.4 million), compared with $83 million (50.6 million) during the same period in 2010. This increase was mostly caused by a 74 per cent rise in revenue from software subscriptions to $76.4 million (£46.5 million) - up from $44 million (£26.8 million) in 2010 - and an increase in money from its supplier network, which increased to $37.5 million ($22.8 million).

Ariba attributed the improved performance to investment in sales and marketing and the company’s acquisition of Quadrem, which the company bought for $150 million at the end of 2010. This has allowed Ariba to sell in new markets.

But total revenue at Hubwoo fell by 3 per cent compared to the corresponding three months of last year. The company made €8.8 million (£7.7 million), slightly down on the comparable figure of €9.1 million the company made in 2010. However, revenue for the first half of the financial year was actually up by €100,000 overall compared to last year.

Hubwoo blamed the slow rate of new orders in Europe and the Americas, and contract delays with customers that reduced sales. In response the company has renegotiated existing contracts to take account of current economic circumstances.

Ariba was reporting financial results for the company’s third quarter, and Hubwoo for the second quarter.

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