Autonomy on Track to Break $400 Million in Revenue in 2008
April 24, 2008
Autonomy announced on April 24, 2008, its first quarter financial results. You can read the highlights and the details here.
The key part of the announement for me is that the company’s revenues for the first quarter of 2008 were $105.1 million, up 61 percent from $65.5 million for the first quarter of 2007. The turbo booster was strong organic growth and the contribution from ZANTAZ, the email and eDiscovery unit of Autonomy. In the first quarter of 2008, revenue from North America was $63.9 million, representing 61 percent of the company’s total revenues. Autonomy’s adjusted gross profits were $93.5 million, up 56 percent from $60.0 million in the first quarter of 2007. Gross margins were 89 percent in the first quarter of 2008. In the first quarter of 2007 gross margins were 92 percent. Gross profits for the first quarter of 2008 were $88.2 million, up 52 percent from $58.1 million in the first quarter of 2007. Gross margins for the first quarter of 2008 were 84 percent, compared to 89 percent in the first quarter of 2007. The company said that its gross margins decreased in the third quarter of 2007 following the acquisition of ZANTAZ in July 2007, but have increased as planned in each subsequent quarter as a result of the integration of ZANTAZ and the transition of the core ZANTAZ business to higher margin sales.
A financial analyst might niggle the company about its earnings. For me, the big news is that if my estimates of Google’s revenue from its enterprise division are on target, Autonomy may beat or exceed the estimated $400 million Google generated in calendar 2007 from its enterprise search and enterprise applications sales. Google, according to my sources, became the number one vendor of enterprise search and retrieval systems on the strength of its more than 8,500 installations of the Google Search Appliance, the Google enterprise geospatial business, and expanding uptake of its cloud-services for organizations.
One question is, “Can Autonomy surpass Google to regain the crown as the leader in enterprise search?” An equally intriguing question is, “Will Google’s strong growth continue and keep its lead as the number one vendor of enterprise search?”.
Stephen Arnold, April 25, 2008
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