Day Boasts License Revenue Jump in Q3 2009

2 minute read
Irina Guseva avatar

Day is Shining Again on the Financials Front

Gotta admit, we are about to run out of the (semi-) witty headlines for Day Software (news, site) that continues to build on the momentum and report brightfinancial results quarter after quarter. That is, let's not forget, following the not-so-bright period a bit of time ago.

After reviewing and changing their accounting policies, doing a bit of a re-org in the upper echelons and shedding some extra weight, Day continues to deliver positive numbers in Q3 2009. The highlight of Q3 (interim results) is a considerable increase in license revenue -- a 37% growth over the same period in 2008 and a 26% increase over 1H 2009.

Day attributes these revenue numbers to “global demand for CQ5” and “major new customer wins.” We have reviewed different re-incarnations of CQ5 WCM (including CQ5.1 and CQ5.2) as they came out, and do tend to agree that the product is starting to look more and more compelling.

The shareholders might alsobe (cautiously) pleased with Day's aggressive product release schedule. As we mentioned before, CQ 5.3 -- the newest version of their Web CMS -- is scheduled to come to the masses some time in Q4 2009.

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At the same time, while there aren't many detailsyet on the interim Q3 results out there, we suspect that R&D (and associated sales and marketing, etc.) spendings are sky-rocketing to get CQ 5.3 to the market. That's just something the shareholders may have to live with.

At this time, we don't know much about how the license revenue increase correlates to, for example, consulting, training and overall Professional Services (Does Day even have PS?) revenues. Someone's got to implement all those sales deals... 

Globally, Day says it saw a revenue surge in the U.K. operations, led by Trevor Salmon (part of the recent re-org, see above), VP of UK and Northern Europe. However, the U.S. market still remains the number one cashcow for the Q3 2009 balance sheet.