SAS achieves record revenue with 15% growth in 2004
SAS achieves record revenue with 15% growth in 2004
-- Global revenues top $1.5 billion --
BRUSSELS (Feb. 3, 2005) - SAS announced continued financial and customer success for 2004, with annual revenue up 15 percent over 2003. Total revenue for the year reached $1.53 billion, clearly establishing SAS as the leading provider of business intelligence software. This performance marks the company's 28th consecutive year of revenue growth and profitability. The strong performance is attributed to the company's recent industry focus, the launch of the groundbreaking SAS®9 Enterprise Intelligence Platform and the release of a new generation of business solutions.
"In 2004, SAS generated more than $1.5 billion by selling a variety of data warehousing, integration and BI software applications, making it one of the largest software companies in the world and a serious competitor in the BI space," said Peter Goldmacher of SG Cowen & Co. "Its competitors would be well advised to remain wary of the company's commitments to product innovation and improving customer relationships."
"Our unique advantage is SAS' ability to deliver intelligence across organizations faster than anything else on the market," said SAS CEO Dr. Jim Goodnight. "We are committed to understanding the industry-specific challenges of our customers and providing them with rapid value. SAS offers customers not just visibility into their data, but also resolutions to emerging business issues that have made it to the top of corporate agendas. We made significant investments in hiring and new technology during a down market so that we'd be in a strong position when the economy rebounded. That shows itself in our results."
Customer intelligence revenue, including campaign management and marketing automation, more than doubled as a result of the fierce competition for customers in the financial, retail and telecommunications industries. Applications related to monitoring and managing organizational health - activity-based management, activity-based costing and performance management - increased by more than a third over 2003. The trend in business to get a better handle on costs drove up IT management applications revenue by nearly 30 percent and risk management applications by 20 percent. SAS core strengths - advanced analytics and data management - also grew by more than 20 percent in revenue.
From an industry perspective, financial services continues to be the leading source of revenue by industry, accounting for 35 percent of industry-specific revenue for the company. The company saw particularly strong growth in the financial services industry (22%), pharmaceuticals (20%), public sector (30%), telecommunications (18%), energy/utilities (18%), and retail (9%).
SAS'long-time global presence was reflected in strong revenue growth across all geographies. SAS saw 46 percent of revenue coming from Americas, 44 percent coming from Europe/Middle East/Africa (EMEA), and 10 percent for the Asia/Pacific region. Rapid sales growth in Asia-Pacific drove revenue up 20 percent in that region. In Latin America total revenues were also up significantly at 50 percent over 2003.
A year of innovation
In addition to leadership, quality, customer focus and regulatory compliance, globalization efforts and financial viability of investments were among the top challenges facing competitive organizations in 2004. According to Gartner Group, two-thirds of CIOs felt at risk in 2004 because they didn't deliver expected value on IT investments.1 SAS benefited from an increased focus on fast return on investment.
CIO Insight magazine again placed SAS in the top 20 of its annual ROI rankings.
Driving new business for SAS was a series of launches beginning with the SAS®9 Enterprise Intelligence Platform. This unique intelligence platform helps companies do more with the resources, data and systems that they already have, giving greater numbers of people within those companies access to the predictive analytics and data management capabilities of SAS. With its capabilities in the ETL, data quality, data warehousing, business intelligence and analytics space, this platform is the basis of reducing total cost of ownership (TCO) of IT investments. SAS shipped SAS®9 to nearly 20,000 sites in 2004.
Building on this platform, SAS launched a portfolio of seven enhanced software solutions including SAS Financial Intelligence, SAS Marketing Automation, SAS Risk Dimensions, SAS Web Analytics, SAS Activity-Based Management, SAS IT Management Solutions and SAS Supplier Relationship Management. Forrester Research noted that the new SAS Marketing Automation solution would provide SAS with the potential to disrupt the marketing automation software market.² Revenue growth for this solution validates Forrester's observation.
In 2004, SAS extended its commitment to the performance management space, allowing decision makers to form an accurate and insightful picture of which areas of an organization are performing well, which are behind target and need attention, and the causes of non-performance. Butler Group classified SAS as outperforming this market.Â³
SAS continued to expand its line of industry-specific solutions, combining its unparalleled analytic strength with the added value of domain expertise in such areas as banking, insurance, retail, life sciences, telecommunications and manufacturing. The company's dedicated financial services business practice has developed specific solutions to address the challenges created by new corporate compliance demands. SAS and Marketmax also continue to increase their commitment to the retail industry by enabling superior merchandising and faster marketing decisions.
"The SAS®9 Enterprise Intelligence Platform and solutions take customers beyond business intelligence as they know it and enable them to shape future results instead of merely tracking historical data," said Goodnight. "The rapid adoption of our enterprise intelligence platform and our continued revenue growth confirm our focus on consistently delivering unmatched quality and return on investment, and suggest ongoing success for SAS and its customers in the years ahead."
SAS will continue to extend its lead in the BI market by providing customers with The Power to Know®. On the strength of the SAS®9 Enterprise Intelligence Platform and a continuing stream of significant enhancements, SAS remains uniquely positioned to integrate data across an organization and make intelligence available to use as a strategic company asset.
New sales fuel success
In the fourth quarter of 2004, customers who licensed SAS solutions included: Aeon Credit Service Co. Ltd., Blyth Inc., Burger King Corporation, Duke University Hospital, Eskom Information Technology, European Anti-Fraud Office, Fingerhut Direct Marketing, GlaxoSmithKline Services plc, Hartford Life, HBOS plc, HSBC Bank plc, Kohl's Corporation, Ministero Dell'Economia E Delle Finanze, Nextel Communications Inc., North Carolina Office of Information Technology Service, ORANGE FRANCE, Poway Unified School District, Stage Stores Inc., U.S. Census Bureau, U.S. Coast Guard's Integrated Deepwater System Program, U.S. Dept. of Navy - Naval Computer Incident Response Team (NAVCIRT), Norwich Union Central Services Limited, South African Revenue Services, Vodafone Limited, UNEDIC, University of Washington, and Wisconsin Department of Revenue.
SAS received numerous accolades validating its business and employee strategies:
· Deemed an important milestone in the evolution of business intelligence applications, the SAS®9 Enterprise Intelligence Platform was named to the IndustryWeek Technology and Innovation Awards program, one of the five Technologies of the Year for 2004 as selected by the editors.
· CRM magazine inducted SAS CEO Dr. Jim Goodnight into the CRM Hall of Fame, and SAS customer AAA Mid-Atlantic won a CRM Elite award. In the CRM Analytics category, SAS was lauded as "the best vendor in terms of predictive analytics" and for having a large customer base that "remains among the most loyal in the category."
· For the seventh straight year, DM Review readers included SAS in the DM Review 100, a prestigious award recognizing the top 100 business intelligence software vendors.
· CMP Media's Intelligent Enterprise magazine named SAS the winner of three individual categories in its seventh annual Readers' Choice Awards for Best IT Products: Best Data Mining, Best Text Analysis, and Best Predictive Modeling and Planning.
· Maintaining its commitment to employees, for the eighth consecutive year SAS was among the top 20 companies in the Fortune Best Companies to Work For in America list and was included in the newly introduced Hall of Fame, a list of the 22 companies that have appeared on every list since 1998.
SAS is the market leader in providing a new generation of business intelligence software and services that create true enterprise intelligence. SAS solutions are used at more than 40,000 sites - including 96 of the top 100 companies on the FORTUNE Global 500® - to develop more profitable relationships with customers and suppliers; to enable better, more accurate and informed decisions; and to drive organizations forward. SAS is the only vendor that completely integrates leading data warehousing, analytics and traditional BI applications to create intelligence from massive amounts of data. For nearly three decades, SAS has been giving customers around the world The Power to Know ®.
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies.
Copyright © 2005 SAS Institute Inc. Cary, NC, USA. All rights reserved.
1 Gartner Survey of 1,300 CIOs Shows IT Budgets to Increase by 2.5 Percent in 2005, January 14, 2005, Gartner, Inc.
2 SAS Shakes up Marketing Automation, March 5, 2004, Forrester Research
3 Corporate Performance Management: A New Approach to Business Control and Planning, June 2004, Butler Group
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