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MGI 360 Ratings - Monexa June 3 2014 Billing Management Systems

We are raising our MGI 360 Rating of billing software supplier Monexa from 53 to 56 and re-iterating POSITIVE outlook. 
 
Background: In 2012 Monexa left the Vancouver stock exchance in a go-private transaction to focus exclusively on the billing solutions market. It is the only company of its kind with a strong channel focus (60% of revenues are from indirect channel partners), and it is willing to OEM its solution. The company has 50 people based in the Phillipines providing PCI fulfillment, a service it offers on request. With a background in enterprise software, Monexa is more open to applying its solution to unique use-cases e.g., a major retailer relies on Monexa to handle warranty tracking and returns management.
 
Competitors: Aria, MetraTech, and Zuora are direct competitors. The billing systems market is increasingly bifurcating into two major vendor groups: A. Companies that handle primarily subscription billing and B. Companies that handle sophisticated billing including subscription. Monexa is increasingly in the B group together with Aria and Metratech. See MGI Research's Market Rating Report for complete sector analysis and long-list and short-list competitors. Peer group made up of 14 companies.
 
Outlook: Monexa continues to improve its execution on all key elements of its business plan. There are a significant number of new capabilities such as for micro payments and international taxation, a clear technology roadmap and R&D investment to match the plan. Reference accounts cite sophisticated, granular billing capability, intelligent pricing with low or no upfront fees, product flexibility and company responsiveness. Management is focused on building marquee B2B accounts characterized by an intersection of high value transactions and low to medium transaction volume. Monexa has been particularly competitive when customer requirements call for sophisticated mix of usage and subscription billing. Building of critical mass, scaling of the marketing and channel efforts, increased visibility and brand equity all remain priorities for Monexa. Monexa is one of a few firms in billing to focus on a 3rd party channel strategy.
 
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 140 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 sytem 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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