We initiate coverage of cleverbridge in the eCommerce Platforms market with an MGI 360 Rating of at 51 with a Positive outlook.
We estimate 2016 revenues of $45 Million growing steadily at 17% p.a. The company has been late in adopting support for API-driven subscription sales capability as well as with entry into a Payment Facilitator (PayFac) model. The firm significantly increased its sales staff only in 2014 and its marketing efforts have been modest to date. The company services are priced commensurate with other full-service models.
The sweet spot for cleverbridge offerings is in companies that are $5Mil-$50Mil in e-commerce sales, looking to expand globally, selling only virtual goods and seeking a full-service (Merchant-of-Record) model. The use case for cleverbridge is not based around excellence in any one specific area but centers on a solid value combination of e-commerce capabilities, a methodical approach to product development, on great support, highly satisfied customers and on a client-friendly economic model.
In addition to an e-commerce platform, the firm offers design, marketing and fraud prevention services. The number of clients (300) is modest compared to competition, but the client retention rate is > 95% and the first client is still a client. The firm is conservative and focuses on e-commerce revenue streams of $5Mil to $50Mil with a minimum threshold of $250K in monthly recurring revenue. US headquarters is in Chicago, IL. R&D is in Cologne, support is in US, Europe & Japan. The founders still run the company and are industry veterans who held senior positions at Element 5 before it was acquired by Digital River in 2004.
Digital River, Avangate, PayPro Global, FastSpring and best of breed Agile Monetization tool suppliers.
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The MGI 360 ratings are on a scale from 0 to 100 and reflect company opinions of MGI analysts in five key areas on a scale of 0 to 20:
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