Contract evidences growing SaaS acceptance
Sopheon has received a contract from Doosan Bobcat North America to deploy its Accolade software to manage Doosan Bobcat’s portfolio of projects across a number of corporate groups. The implementation went live in August. In its recent interim results announcement, Sopheon noted that it had signed a number of Software-as-a-Service (SaaS) deals and extensions including a major new win. Our estimates already reflect that backdrop. Doosan Bobcat’s decision to go with a SaaS contract is another example of the growing acceptance of the SaaS model within the market for enterprise innovation management solutions. In the results announcement, Sopheon also said that it planned to make specific investment in product, people and processes to further extend Accolade. This will provide impetus to the Group’s focus on expanding its “lifetime value” opportunities across a number of blue chip clients through extending the business application areas addressed by Accolade. It recently released Accolade version 12.1. Sopheon produced a strong performance in the first half of 2018 and the Group retains both good momentum and excellent revenue visibility. We look forward to further updates.