Document productivity software vendor Nitro has seen recurring sales soar 64% in the year ending 31 December 2020 versus the year before, exceeding prospectus forecasts.
Australian Stock Exchange-listed Nitro outperformed expectations for annual recurring revenue from subscription sales as well as operating EBITDA, with Sam Chandler, co-founder and chief executive officer at Nitro, highlighting its focus on customers’ rapidly evolving needs and building a platform for continued growth.
“The success of our subscription-only Nitro Productivity Suite and the demand for our new Nitro Sign product has enabled us to significantly outperform on key metrics in our prospectus forecast, with annual recurring revenue (ARR) growth of 64% and subscription revenue growth of 61%,” Chandler confirmed.
Subscription revenues of US$21.2 million were up 61% on the previous year, increasing to 53% of total revenue. Total revenue of $40.2 million delivered year-on-year growth of 13%. This was in line with the prospectus forecast, the company reported.
“We are also investing for the long-term. In FY2020, we evolved our go-to-market strategy, furthered our vision for a document productivity platform with the launch of Nitro Sign as a standalone product, and continued our transition to subscription, which is tracking ahead of our previous expectations and nearing completion for business customers,” Chandler said.
Nitro products can help customers digitise their document workflows as part of a digital transformation across their entire organisation with its document productivity products.
The transition to a subscription business model was most evident in the B2B sales channel, where subscription revenue comprised 72% of total business sales revenue, up from 50% in FY2019.
Some operational savings were made due to Covid, including delays in hiring during the year, the company reported.
Meanwhile the whole Nitro Productivity Suite experienced strong demand as work shifted to remote, digital-first and digital-only around the world.
In FY2021, Nitro will continue to focus on delivering its platform product strategy, driving increased adoption of PDF productivity, e-signing and analytics solutions across new and existing customers in its enterprise, mid-market and SMB segments.
The total addressable market is at $28bn and growing, according to Nitro.