Insight
Subscription software transformed ERP customer lifetime value into a 10-year relationship
“It replaces the need to have to spend to write a check for six figures to buy the license upfront, like the old model was some three, four or five years ago. And, you know, it shifted the lifetime value of the customer from that, just that first year where it …”
Insight
Learning a new ERP product requires three to four years and $500,000
“Starting from zero and trying to learn a new ERP product is a long, long road. It's a good three, four years. And Half a million dollars of learning. So it's a lot easier to acquire.”
Prediction Not checkable as stated
Ativo Group projects approximately $3.6 million in 2021 revenue
“We'll probably do 3.6, I would think.”
Disclosure
Ativo Group currently generates about 60% of its income as recurring revenue
“We're about 60% there. We need to get to say, 80, 90% recurring revenue without any large, without any one large customer being, you know, the driving force behind that number.”
Disclosure
Ativo Group's largest single customer accounts for up to $700,000 annually
“Probably Six, 700,000 a year.”
Disclosure
Ativo Group operated at roughly breakeven EBITDA on $3.8 million revenue
“It was basically break even.”
Disclosure
Ativo Group is fully bootstrapped without outside venture capital
“It's a hundred percent bootstrapped.”
Disclosure
Ativo Group targets $2M to $30M businesses for first ERP implementations
“We work with small manufacturers and wholesale distributors, as well as certain types of service companies, and by small, I mean, two million to thirty million in revenues, those that are on their first Real true ERP implementation journey.”
Disclosure
Ativo Group targets complex regulated industries like pharma and medical devices
“When we go to market, we focus specifically on complex industries food and beverage pharma, medical device, metals manufacturing. Anything where there's a high degree of quality control traceability of product production scheduling and supply chain complexity …”
Disclosure
Ativo Group charges $16,000 to $20,000 annually for 10-user ERP implementations
“Well, a 10 user implementation. Typically ranges about 16 to 20,000 dollars per year. It's all subscription software. So, you know, a 10 user system is really about 1500 dollars per month.”
Disclosure
Ativo All-in-One is built upon adapted SAP Business One
“Our product Ativo all in one is the SAP business one application as adapted for ease of implementation by our team.”
Disclosure
Ativo Group serves approximately 240 active customers
“We currently have about 240 active customers.”
Disclosure
Ativo Group generated roughly $2.9 million in 2019 revenue
“I think we did about 2.9.”
Assertion Supported
SAP Business One has approximately 700 to 800 global resellers
“There's approximately 700 or 800 SAP resellers for the product line that we work with around the globe.”
