Strong Q3 and YTD revenue performance and cash position contribute to recent company debt repricing, and well-positions company for strategic innovation opportunities and continued operational success
SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- JDA Software Group, Inc. today announced its results for the third quarter of 2017. The company reported 30 percent product revenue growth (software, subscription/SaaS), total revenue growth of more than five percent and strong profit growth of more than 18 percent year-over-year (YoY). This also marks JDA’s seventh consecutive quarter of YoY product bookings growth. JDA’s strong operational performance and focus on combining edge technologies with its leading solution portfolio uniquely positions the company to power today’s digital transformations. These transformations are enabling JDA customers across all industries to shorten their supply chains, increase speed to market, and create superior customer experiences and competitive advantage.
“Closing our third quarter with such strong revenue and profit growth gives us the exact momentum we need to close a successful 2017, while delivering a top-notch customer experience. On the heels of a highly successful FocusConnect, with over 500 JDA customers and partners in attendance, there is palpable excitement as digital transformation creates new opportunities throughout the entire supply chain,” said Girish Rishi, chief executive officer, JDA. “Data is the new currency of the supply chain. JDA is committed to exposing this data and providing actionable insights to customers that turn their supply chain into a strategic weapon and competitive advantage.”
JDA Cloud Powers Revenue and Profit Growth; Strong Cash Position Leads to Reduced Cost of Long-term Debt
JDA’s subscription/SaaS offerings continued to demonstrate remarkable growth rates of 71 percent in the third quarter and 68 percent year to date.
During the third quarter of 2017, total product revenue grew by 30 percent versus the same quarter last year, and year to date product revenue is up 19 percent as compared with the first nine months of 2016. Solid growth in Services, combined with the product revenue growth, contributed to JDA’s overall revenue growing more than 5 percent, and contributed to 18.7 percent growth in EBITDA versus Q3 last year.
The company’s Q3 results and strong cash position also contributed to JDA successfully repricing its outstanding debt to a lower interest expense. JDA negotiated a further 50 basis point reduction to its annual borrowing cost. This is expected to save the company $6 million in annual cash interest expense.
Customer Wins Driven by Companies Pursuing Digital Transformations
Through its end-to-end solution portfolio, JDA is uniquely capable to help customers create a more connected and cognitive supply chain by tapping into the power of actionable data and insights, and leveraging them across the entire value chain. In the third quarter, JDA signed 51 net-new customers across a variety of solution areas. Some of the customers that selected or extended their footprint with JDA during the quarter include:
- APAC: ASM Technology, Changchun Fawsn-Volkswagen Logistics Co., Ltd., Honestbee, Lava International Ltd., Metcash
- EMEA: Boehringer Ingelheim Pharma GmbH & Co. KG, C.&J. Clark International Limited, Coca-Cola Peninsula Beverage Company, Colgate-Palmolive, Johnson & Johnson Poland, Mattel Poland, PEP, Pick n Pay, PSA Group, Samsung Electronics Polska, Sandvik Mining and Construction Logistics Ltd, Supergroup, Unicoop Firenze
- North America: Adient, Batory Foods, Chico’s, Coach, Constellation Brands, Cumins, Foot Locker, Ingram Micro Inc., Immix Technology, JCPenney, Kenco, L.L.Bean, Levi’s, Loblaw, Love’s Travel Centers, Marks, Metro Supply Chain Group, McKesson Canada, Nike, Pacific Sunwear, Paradies, Peavey, Pilot Travel Centers, Polaris, PVH Group, Rona, Sobeys, Starbucks, Tailored Brands, Talbots, ULTA Beauty
- Latin America: Boticario, Solistico
JDA Increases Digital Hiring Plans to Further Drive New Innovations Presented by Digitalization Opportunities
To continue to deliver the next-generation solutions that capture opportunities presented by the Internet of Things (IoT), machine learning, cloud and advanced analytics, JDA announced it plans to hire digital talent across product management and development, as it works to deliver new and enhanced value to customers with digital edge innovations. In the third quarter alone, JDA added more than 200 new associates who were attracted by company innovations, leadership, culture and career development programs.
JDA Named a Most Admired Company for Second Year in a Row
For the second year in a row, JDA was named a 2017 Most Admired Company in Arizona by Az Business magazine. This prestigious award further highlights JDA’s focus on associate engagement and commitment to its three core values - Results, Relentless and Teamwork.
JDA Again Named Leader in Retail Planning by Gartner and Forrester
JDA’s financial momentum and continued innovation were further validated by its recent recognition as a retail planning leader by two independent analyst firms (see release here).
- Join JDA at the NRF BIG SHOW 2018, January 14-16, 2018 in New York City
- Join JDA at SCM World Live Americas, February 4-8, 2018 in Miami
- Meet with JDA at RILA Supply Chain Executive Conference, February 25-28, 2018 in Phoenix
About JDA Software Group, Inc.
JDA Software is the leading supply chain provider powering today’s digital transformation. We enable companies to improve their ability to plan, execute and deliver by better predicting and shaping demand, fulfilling more intelligently and quickly, and improving customer experiences and loyalty. More than 4,000 global customers use our unmatched end-to-end solutions portfolio to shorten their supply chains, increase speed of execution and profitably deliver to their customers. Our world-class client roster includes 72 of the top 100 retailers, 71 of the top 100 consumer goods companies, and 13 of the top 16 3PLs. Running JDA, you can plan to deliver. www.jda.com
“JDA” is a trademark or registered trademark of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name “JDA” is a trademark and/or property of JDA Software Group, Inc.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171115005172/en/
JDA Software Group, Inc.
Jolene Peixoto, +1 978-475-0524
Senior Director, Corporate Communications
Source: JDA Software Group, Inc.