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MGI 360 Ratings - cleverbridge in e-Commerce Platforms JAN 25 2017

MGI 360 RatingINITIAL RATING: 

We initiate coverage of cleverbridge in the eCommerce Platforms market with an MGI 360 Rating of at 51 with a Positive outlook. 

 

OPINION:

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.

 

USE CASE: 

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.

 

COMPANY DESCRIPTION:

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.

 

COMPETITORS:

Digital River, Avangate, PayPro Global, FastSpring and best of breed Agile Monetization tool suppliers. 

 

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 subscription research, advisory engagements, industry studies and ratings, MGI Research helps clients identify opportunities for reducing IT costs and minimize technology risks. MGI Research analysts work closely with user organizations to create practical strategies for new technology initiatives such as mobile, virtualization, SaaS and cloud computing and make timely go/no-go IT investment decisions. 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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