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MGI 360 Ratings - Financialforce in Automated Revenue Management

MGI 360 LogoSUMMARY: Initiating coverage of Financialforce in the Automated Revenue Management (ARM) market with an MGI 360 Rating of 48 and a NEUTRAL outlook.
OPINION: The core strength of Financialforce (“FF”) lies in its native use of the Salesforce platform. The ARM functionality and broader monetization capabilities have shown improvement over the past 24 months. FF ARM customers highlight the ease of use and ability for a small finance team to stand the system up quickly. However, in our view, the investment into the overall financials solution has not kept pace with the market, in part due to the far greater success of FF’s PSA product. Among the integrated financials and ARM products, FF is one of the only ARM products that can be run stand-alone (i.e., without the financials being used). This is attractive to business units of larger entities that are heavy Salesforce users and require ARM functionality to connect into a global finance infrastructure. 
USE CASE: Lower mid-market enterprises ($25Mil - $250Mil) seeking an integrated financials and ARM solution running natively on the platform.
COMPANY DESCRIPTION: Founded as the only financials package native to the platform, Financialforce primarily develops and sells two distinct solutions: financials and professional services automation. The financials product targets small to midsize enterprises: the PSA product fits mid to very large size services organizations. Originally a division of Netherlands-based Unit4, the company has raised close to $200 Million in funding from investors including Advent International, Technology Crossover Ventures and Salesforce Ventures
COMPETITORS: Billing software suppliers with ARM functionality like BillingPlatform, Gotransverse, Just.On, as well as ARM suppliers such as Oracle-NetSuite, SaaS Optics, Sage Intacct, Softrax, Zuora
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.
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).
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