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Monday, Jun 01st

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MGI 360 Ratings - cleverbridge in Commerce and Payment Platforms June 18 2019

MGI 360 Rating LogoRATING UPDATE: We are reducing the MGI 360 Rating of Cleverbridge in the Commerce and Payment Platforms market from 51 to 45 with a Neutral outlook.
OPINION: The company is on a modest growth trajectory below 5% p.a. amid some C-level churn. Cleverbridge introduced API-driven functionality in the Salesforce ecosystem with a focus on CPQ in the B2B space, an area where we see a lot of movement in terms of automation and optimization of processes. In January 2019 the company received an EU Payments Institute license thus significantly increasing its total addressable market. Still there does not seem to be a realistic plan for entry into a Payment Facilitator (PayFac) business or a fully functional subscription management capability. Cleverbridge pricing remains focused on revenue share and limits expansion into larger enterprise accounts. Sales and marketing are opportunities for improvement as sales headcount shrunk.
USE CASE: Companies with $5Mil-$50Mil in sales of digital goods, looking to expand globally, and seeking a full-service (Merchant-of-Record) model.
COMPANY DESCRIPTION: Cleverbridge is a full-service commerce platform including payments, marketing, subscription and fraud prevention services. The number of clients -300, is modest compared to competition, but the client retention rate is > 90% 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 company is run by a mix of original founders and managers recruited externally.
COMPETITORS: Digital River, 2Checkout, PayPro Global, FastSpring, Nexway
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.
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