Day Gets ROI on CQ5, Reports License Growth

Day Sotware (news, site) released their 2H 2009 and end of year financial results. Major brags from the Basel-land include 27 new customers, increase in licensing revenue (yet again), regional markets expansion -- and most of that thanks to CQ5.

CQ5 = Money (In and Out)

For those of you who might’ve been living under the rock lately, check out our coverage of CQ5 releases -- 5.1, 5.2 and 5.3 -- that Day has been churning out since November 2008.

CQ5 is really what’s keeping Day’s days brighter. Installed base re-orders for CQ5 are growing, and Day’s investment in innovation in Web CMS is paying off. According to the vendor, CQ5 has the fastest rate of adoption compared to any other prior release version.

Financial Highlights

Some number for financials geeks:

  • Total license revenue of CHF 9.2M for 2H 2009, representing a 65% increase compared to 2H 2008
  • Total license revenue for 2009 was CHF 16.5M against CHF 11.3M in 2008
  • Total revenue for 2009 of CHF 36.3M, an increase of 31% over 2008
  • Services revenue was at CHF 8.3M compared to CHF 6.8 in 2008
  • Product support revenues were up to CHF 11.5M in 2009
  • Cash went up 72% from a total of CHF 12.8M at the end of 2008 to CHF 22.0M in 2009
  • Operating income in 2009 was CHF 4.2M, equal to an 11% margin
  • Earnings per share are at CHF 1.82 compared to a sad per-share loss of CHF 4.55 in 2008
  • Sales and marketing expenses grew to CHF 11.4.M from 9.4M a year before.
  • Day is no longer in the red in the Income (loss) from continuing operations and Net Income (loss) lines.

Business and Partner Highlights

Even though Day is slowly moving towards a native Professional Services model, a lot of business in 2009 went to partners. Their channel-led sales model and a worldwide partner program for several interactive agencies, system integrators and regional partners account for about 60% of 2009 customer transactions.

In addition, Day continued its investment in new geographies in 2009, expanding operations in the U.K. and opening new Paris and Milan offices. Day is also paying much attention to the North American market with opening of a new North America headquarters in Boston, MA.

The Board of Directors saw some changes as well, as we told you last year.

Day's Plans for 2010

According to the company’s CEO Erik Hansen, Day plans to continue investment in CQ5 products. People-wise, the vendor also plans to continue investing in recruiting in sales, marketing and partners in both North America and Europe to grow license income and maintenance revenue.

Looks like more bright days will be coming up for Day. We’ll continue to watch them and report back to you.