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MGI 360 Ratings - Chargify in Billing Management SEP 25 2018

MGI 360 RatingRATING UPDATE: We upgrade the MGI 360 Rating of Chargify in the Agile Billing market from 50 to 52 and maintain a NEUTRAL outlook.
 
OPINION: Since its 2016 acquisition by PE firm Scaleworks, Chargify has undergone a complete overhaul backed by aggressive hiring in R&D, sales and support. Product score increased from 8.98 to 9.79. Management score is up from 11.71 to 11.75, and a new CEO is on board. Channels score increased from 7.96 to 8.45 reflecting higher sales productivity. Marketing score is down from 12.38 to 12.10 – brand visibility needs to improve. Finance score rose from 9.30 to 9.80. Company is evolving from its original focus on small business toward a more full-featured and higher priced solution aimed at mid-market buyers. Features include subscription management, invoice consolidation, light CPQ, and integration with payment, tax, and CRM products. The size of its sales channel is a limiting factor.
 
USE CASE: B2b and B2C subscription and “as a service” growth companies and SMEs with digital and light physical business models with medium levels of volume and complexity.
 
COMPANY DESCRIPTIONOriginally founded by the creators of the Grasshopper VoIP service and spun off in 2011, Chargify has about 60 employees and sells its Elastic Billing offering via a direct sales force. Most of the customer base is Small and Midsize Enterprises (SMEs). Chargify has sold small projects into a few divisions of large companies. The company processes around $3 Billion in subscription revenue from approximately 20 Million subscribers. Operations (sales, marketing, engineering, support) are centered in San Antonio, TX with an offshore development center in Krakow, Poland. We estimate that Chargify received $8 Million in funding to expand the business. The company generates $9-10 Million in revenues annually, and is growing nearly 30% at near breakeven profitability due to a fairly high rate of revenue retention. 
 
COMPETITORS: ChargeBee, Chargeover, Fusebill, NetSuite-Oracle, Recurly, Zuora
 
ABOUT MGI 360 RATINGS
 
MGI 360 Ratings is a comprehensive system for evaluating technology companies. IT organizations use MGI 360 to track suppliers, assess purchasing risks and identify promising new vendors. Vendors utilize MGI 360 to track their markets and evaluate partners. Institutional investors use MGI 360 for independent assessment of tech companies. MGI 360 ratings help lower costs, save time, reduce risks, and identify new opportunities. 
 
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:
 
* PRODUCT: How strong is the product competitive position
* MANAGEMENT: How competent and experienced is the management team
* CHANNELS: Does the company have a sales capability and channels needed to bring products to market?
* STRATEGY: Does the company have a realistic view of the opportunity and a compelling strategy for success?
* FINANCE: Is the company growing and profitable
 
Each of these key criteria is subdivided into numerous sub-categories. In total, over 149 criteria are combined to generate an MGI 360 rating in each specific market space. Companies can have one or more MGI 360 rating - one for each market. MGI 360 ratings are revised as important developments occur. While the MGI 360 rating process is comprehensive, this scoring system is not meant to be a predictor of company solvency, liquidity, absence of accounting fraud or stock performance. Access to MGI 360 Ratings is by subscription.
 
ABOUT MGI RESEARCH
 
MGI Research is an independent industry research and advisory firm focused on disruptive trends in the technology industry. Through ratings, industry benchmarks, best practices groups, subscription research, market forecasts, advisory engagements, industry studies and conferences, MGI Research helps clients identify opportunities for reducing IT costs and minimize technology risks. MGI Research analysts work closely with business and technology organizations to help make timely go/no-go IT investment decisions, optimize vendor relationships, and create practical strategies for new initiatives in agile billing, payments management, order management, CPQ, contract lifecycle management and other elements of agile monetization platform (AMP).
 
For additional information, to purchase a subscription or to schedule a confidential consultation, call +1 888-801-3644 or visit www.mgiresearch.com 
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