With WebEx's earnings announcement this week, we come to the end of the reporting period covering the fiscal year for many companies. I decided to root through the financial reports for some of the significant web conferencing vendors to see how performance looked on an overall basis. In summary, the market is healthy and companies are increasing their spend on webcasts, web conferences, and webinars.
I should make a standard disclaimer here at the start, since I'm going to be talking financial results.
- I hold no stock or financial interest in any web conferencing technology or company, whether mentioned here or not.
- All reported figures come from public earnings announcements or SEC filings. I did not use any personal interviews and I do not have insider access to any financial information from these companies.
- I left out some significant names in the industry. Adobe, Microsoft, and West Corporation (owners of InterCall) all have too wide an array of products and revenue sources to easily track the performance of their web conferencing products. Many other vendors (such as ON24 and Vcall) are privately held and do not announce financial performance.
- I do not imply any endorsement or recommendation related to investment or financial condition of the companies mentioned. I am not a financial analyst and I'm omitting anything related to the companies' net income or other financial health. This is just a simple look at top line revenues.
So much for legal protection. Here's my quick summary of revenue performance (in alphabetical order). Any mention of "years" or "quarters" in these figures refers to each company's own fiscal calendar. All numbers are reported in millions of US dollars.
2006 Q4 revenues were $321, a 19% increase from $269 in Q4 of 2005
2006 FY revenues were $1134.3, a 25% increase from $908.7 in FY 2005
Citrix groups GoToMeeting, GoToWebinar, GoToMyPC, and GoToAssist into a reported "Online Services" category. The revenues attributed to this category were:
2006 Q4: $43 (13.4% of total), an increase from $28.7 (10.7% of total) in Q4 of 2005
2006 FY: $148.8 (13.1% of total), an increase from $99.1 (10.1% of total) in FY 2005
Corvent offers services for webinars and webcasts and also resells other vendors' technologies. They aren't public and didn't release absolute figures, but they did issue a press release claiming an 89% increase in revenue from web seminar services, with sales of registration and reporting services more than tripling.
2006 Q3 revenues were $3.65, a 12% increase from $3.3 in Q3 of 2005
2006 9-month revenues were $10.7, a 20% increase from $9.0 in the first 9 months of 2005
2006 Q4 revenues were $2.3, an 18% increase from $1.9 in Q4 of 2005
2006 FY revenues were $8.4, a 3% increase from $8.2 in FY 2005
Onstream breaks out results for its Webcasting Group, which reported approximately 4,500 webcasts for the fiscal year (down from 4,800 the prior year). Revenues for the Webcasting Group increased 3% for the fiscal year and continued to represent approximately 45% of the company's total revenues (unchanged from the prior year). These revenues are primarily production and distribution fees.
2006 Q4 revenues were $101.9, a 22% increase from $83.7 in Q4 of 2005
2006 FY revenues were $380.0, a 23% increase from $308.4 in FY 2005
Some additional statements from their earnings call:
The company reported record growth in new registered web collaboration users in Q4 of 2006. They now have 2.2 million registered users - the largest subscriber base in the on-demand world for on-demand applications.
Indirect channels represented 17% of revenue in Q4, a percentage that has been steadily increasing throughout the year. Key channel partners such as Verizon, AT&T, British Telecom, Premier, and InterCall were major contributors.