UNIT4 Named Top-Tier Software Vendor by APPS RUN THE WORLD in the APPS and CLOUD TOP 500 Market Report

UNIT4 Strengths, Domain Expertise, and Key Differentiators

Unit4 concentrates its efforts on four strategic industry verticals: professional services organizations, higher education, public services, and not-for-profit sectors. It provides both back-office ERP solutions and domain-specific front-office functionalities tailored to these verticals. Its expansion initiatives include the acquisitions of Intuo, a Talent Management Solution, Prevero, specializing in Corporate Performance Management and Business Intelligence apps, and 3 Rivers, which bolsters Unit4's offerings in student information systems. With these endeavors, Unit4 is poised to emerge as the go-to destination for customers in these four verticals, which collectively contribute to over two-thirds of its revenues and bookings.

The next-generation ERPx experienced immediate success, securing 24 new customers even before the product's General Availability (GA). Analysts acclaimed it as the most advanced ERP platform on the market. Unit4's fusion of mid-market industry expertise, a keen focus on people-centric businesses, and a leading-edge cloud platform resulted in the delivery of unified ERP, finance, and HR solutions that are industry-specific or 'Right for Your Business' straight out of the box. These efforts bore fruit, as evidenced by Q3 results: Cloud subscription revenue surged by 27% (YTD) compared to the same period in 2020, accompanied by a 26% growth in Annual Recurring Revenue (YoY). Cloud bookings increased by 14%, with a total bookings growth of 11%, and the acquisition of 34 new customers, including notable names like North Sea Port, The Volvo Dealers' Association, Amplit, Necto AS, Punch Consulting, Simcoe Muskoka Catholic District School Board, and Durham Catholic District School Board. The ERPx momentum gained traction with 62 new customers onboarded by the end of Q3 and 55 successful go-lives during the quarter. Additional highlights include a remarkable net revenue retention rate of 104%, a 29% growth (YoY) in the value of contracts via partners, and an 8% increase in EBITDA (YoY).

UNIT4 Recent Developments

In January 2023, Unit4 introduced the Unit4 Marketplace, a novel platform designed for ISV, Reseller, and Service partners to exhibit their innovative, tailored industry and vertical Apps that integrate with Unit4’s ERP solutions. The Unit4 Marketplace will initially feature offerings from nine of Unit4’s global partners, facilitating customers in swiftly discovering partner innovations and exploring supplementary functionalities to enhance their existing Unit4 solutions. Beyond enhancing customer return on investment (ROI), the Marketplace offers additional toolsets to facilitate growth and allows customers to leverage pre-built integrations, thereby reducing in-house development efforts.

In the past half-year, Unit4 has undergone significant shifts in its leadership roster, welcoming a cadre of pivotal executives to its ranks: Tania Garrett as Chief People Officer, Matt Bagley as CFO, Tom Ascroft as CISO, Dave Dyer as President of North America, and Adam Bastin as EVP Global Head of Strategy and Corporate Development.

In April 2021, Unit4 unveiled the General Availability (GA) of ERPx, its cutting-edge intelligent Enterprise Resource Planning (ERP) solution tailored for mid-market, people-centric organizations. This milestone followed closely on the heels of the strategic growth buyout announcement by TA Associates exceeding US$2 Billion. Unit4 had previously signed a definitive agreement in March 2021 to secure a majority investment from TA Associates, a prominent global growth private equity firm. Partners Group, a leading global private markets firm, joined TA in investment endeavors on behalf of its clients. Mike Ettling, CEO of Unit4, remains at the helm, supported by the existing management team, as Advent International, the then-majority shareholder, exited its stake in the company.

Unit4 has launched Onboarding4U, a novel program designed to offer customers a smooth, repeatable, and systematic process for implementation. This initiative harnesses industry-leading practices and models, enabling our customers to expedite the realization of value from their investment.

Unit4 disclosed on June 30, 2021, its decision to divest its student information system (SIS) business. This move comes after the strategic expansion acquisition of its global ERP lines of business by TA Associates. A distinct SIS business, operating under the brand Thesis, has been inaugurated with a focus on SIS innovation aimed at facilitating the success of global Higher Education clientele.

Amidst a series of structural and ownership alterations, Mike Ettling persists in his role as Chief Executive Officer, a position he assumed in 2019. After his appointment, Unit4 designated Julie Knight as its Chief Marketing Officer, Brad Everett as VP of Corporate Marketing, Beata Wright as EVP/Global Head of Partner Ecosystems, Lisa Dodman as Chief People Officer, Billy O'Riordan as SVP of Professional Services, and most recently, welcomed Mike Slater as COO and Jeremias Jansson in the CSO capacity.

UNIT4 Mergers and Acquisitions (M&A) Activities

In June 2022, Unit4 completed the acquisition of Scanmarket, a worldwide provider of cloud Source-to-Contract software. This acquisition of Scanmarket, a privately-held Danish company, enables Unit4 to furnish organizations with a cohesive Source-to-Pay journey, augmenting its current ERP and Procure-to-Pay offerings.

In November 2021, Unit4 made another acquisition, this time acquiring Compright, a robust compensation planning solution with a client base spanning over 40 countries. This acquisition enhances the functionalities of Unit4's ERPx, facilitating organizations in automating their entire compensation process through smooth data integration and embedded analytics. This integration encompasses all essential factors necessary to compute equitable and logical total rewards across various geographical regions.

In March 2021, TA Associates, a prominent buyout firm, announced its acquisition of Unit4 NV from private equity firm Advent International in a transaction exceeding $2 billion. Collaborating closely, Unit4 and TA aim to advance the company's vision of "people-centric ERP" (Enterprise Resource Planning) tailored for mid-market enterprise organizations. As a pioneering force in innovation within people-based services industries such as professional services, public sector, nonprofit, and higher education, this partnership with TA will enable Unit4 to effectively tackle the distinct challenges and demands faced by organizations in these sectors worldwide.

Previous acquisitions encompass Intuo, specializing in Talent Enablement solutions to bolster the HCM focus; 3 Rivers, renowned for delivering tailored Student Management solutions tailored for higher education industries; and Prevero, acclaimed for its AI-based forecasting capabilities in Financial Planning & Analysis solutions tailored for the office of the CFO.

UNIT4 Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying UNIT4 applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of UNIT4 and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Unit4 Business World, Unit4 Financials, Unit4 Prevero (CPM), Unit4 Student Management, Unit4 PSA Suite, Unit4 Compright customers.

UNIT4 Key Enterprise and Cloud Applications

Unit4 Business World, Unit4 Financials, Unit4 Prevero (CPM), Unit4 Student Management, Unit4 PSA Suite, Unit4 Compright

UNIT4 Revenues, $M:

UNIT4 Revenue Breakdown By Type, $M:

UNIT4 Enterprise Applications Revenues By Functional Markets, $M:

UNIT4 Enterprise Applications Revenues By Verticals, $M:

UNIT4 Revenues By Region, $M

UNIT4 Direct vs Indirect sales

UNIT4 Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified UNIT4 Customers

No. of UNIT4 Customers: 6126

No. of UNIT4 Enterprise Applications Customers: 6126

No. of UNIT4 Cloud Customers: 500

No. of UNIT4 Cloud Subscribers: 3 million

Unit4 boasts a customer base exceeding 6,000, with over a million users globally. The majority of these customers operate within the professional services organizations and public services sectors. Furthermore, Unit4's core ERP is employed by over 2,700 organizations worldwide.

Since the announcement of ERPx's general availability in April 2021, Unit4 has garnered 126 customers who have opted to utilize ERPx, spanning various regions and industries. Among these are Fost Plus and Stichting Christelijke Hogeschool Windesheim.

During Q2 of 2022, the company welcomed 18 new customers across pivotal markets, all opting for Unit4's suite of people-experience solutions. Notable additions include Elizabeth Glaser Pediatric AIDS Foundation: A leading advocate in the global battle against HIV and AIDS, dedicated to ensuring every child lives a healthy life into adulthood. Dogs Trust: The UK's largest dog welfare charity, responsible for the care of over 15,000 animals annually, primarily funded by individual donations and legacies. Norwich City Council: The local governing body of the historic city of Norwich in the East of England. Gemeente Bergen op Zoom: A municipality in the Dutch province of North Brabant, home to approximately 68,000 residents. Agora Strategy Group: A boutique consultancy specializing in geopolitical advisory, political risk analyses, and business diplomacy. Kronoby Kommun: A municipality situated in Western Finland with a population of 6,439. Oslofjord Convention Center: One of Europe's largest conference and leisure centers, located in Norway. Malax Kommun: A municipality in Finland's Ostrobothnia region, housing 5,486 inhabitants. Kvarnen: A venerable 130-year-old Folk High School situated in Finland's Kronoby municipality. Among these new customers, a significant trend was observed towards cloud solutions, with 8 embracing ERPx. Moreover, Q2 of 2022 witnessed the successful deployment of Unit4 products for 91 existing customers.

UNIT4 Market Opportunities, M&A and Geo Expansions

Unit4 unveiled a significant opportunity in March 2022 with the appointment of Dave Dyer as the Regional President of North America. With Dyer at the helm, Unit4 aims to leverage his leadership to drive growth in this expanding market. His strategic focus on scaling operations, fostering excellence, and nurturing long-term customer connections promises to propel Unit4 forward in North America.

In early 2022, Unit4 revealed its efforts to fortify its operations in Lisbon, Portugal, with ongoing plans for expansion. Since 2006, Unit4 has maintained a presence in Lisbon, and the establishment of a multi-disciplinary hub allows it to oversee essential business functions and provide exceptional service to its global clientele from a centralized location. This initiative is reinforced by access to a diverse talent pool in the region.

Towards the conclusion of 2021, Unit4 introduced Industry Mesh, a novel multi-tenant cloud service integrated into the ERPx cloud platform. This offering provides mid-market organizations with industry-specific ERP solutions and pre-packaged integrations.

In March 2020, Unit4 made a notable announcement, declaring the provision of its employee engagement tool and pre-configured FP&A solutions to companies free of cost amidst the COVID crisis. This initiative aimed to aid companies in maintaining connection with their workforce and facilitating professional planning during challenging times. Additionally, Unit4 unveiled partnerships with Arribate and later on, Raven Intel.

Previously, Unit4 introduced Smart Automation Services for its Unit4 Business World ERP clientele, marking a significant stride in perpetually advancing next-generation automation. This initiative aims to create a workplace where individuals find greater satisfaction as processes self-operate. Concurrently, Unit4 unveiled new cloud extensions in the same timeframe, swiftly augmenting the functionality of Unit4 applications. These microservices-based extensions developed utilizing Unit4's Extension Kit and accessible on Github, afford customers and partners the flexibility to craft distinct front-end applications leveraging critical data from their back-office systems. These enhancements underscore Unit4's commitment to bridging process-centric ERP systems with people-oriented attributes, catering to the evolving needs of agile enterprises and a new generation of workforce and work patterns.

Unit4 has forged a robust partnership with Microsoft and its ecosystem, aligning closely with the Microsoft platform. This alignment is evident in the adoption of products such as Azure, SQL Server, Power BI, and natural language interfaces to empower its Wanda digital assistant. A pivotal factor driving growth is the People Platform, which capitalizes on Unit4's domain expertise to address people skills challenges through user-friendly and readily deployable software solutions.

There are significant opportunities for improving the capabilities of service industries through enhanced corporate insights, streamlined processes from expense management to reporting, and the integration of digital assistants. These assistants excel at reducing friction in tasks such as search, discovery, and matching, as well as eliminating redundant business records and transactions. The acquisition of Prevero and the introduction of the Wanda digital bot play a crucial role in addressing these needs.

Within the professional services sector, Unit4 FP&A has excelled in aiding organizations to optimize value through project-based planning endeavors. The Wanda chatbot, developed on Unit4's People Platform with support from Microsoft's Language Understanding Intelligent Service, provides a conversational user interface. This interface assists Unit4 ERP customers in accomplishing tasks like submitting absence requests for employee self-service and generating timesheets. It leverages various data streams, including GPS and beacon location data, to accurately track time.

UNIT4 Risks and Challenges

Preceding the SIS spinout, Unit4 under CEO Mike Ettling's leadership had divested several divisions. These divestments were counterbalanced by a few acquisitions in recent years. However, this year saw no new acquisitions, a move that might be deemed prudent given the potential disruption stemming from structural changes, as witnessed in 2021. Nonetheless, for evaluating Unit4's continuous growth trajectory, conducting like-for-like comparisons will be imperative.

In July 2020, Kerridge Commercial Systems (KCS) acquired Unit4 Wholesale, an ERP solution tailored for automating trading companies and distributors in the Benelux region. Unit4 Wholesale traces its roots back forty years when Unit4 commenced its journey with the wholesale package Omnivers, later rebranded as Agresso Wholesale and eventually marketed as Unit4 Wholesale. Under the leadership of CEO Mike Ettling, Unit4 has divested certain segments while also engaging in strategic acquisitions in recent years. The company aims to concentrate on delivering business software to the global professional services sector while maintaining a Dutch branch focused on providing solutions for accountancy, education, non-profit organizations, and government entities, often tailored to local needs.

The consecutive acquisitions of Intuo and JSKS indicate that Unit4's investors are reinforcing its product development and Human Capital Management (HCM) strategies, potentially laying the groundwork for more substantial transformations within the company. While the commitment appears steadfast and unequivocal, the lingering question revolves around its capacity to actualize its vision.

UNIT4 Ecosystem, Partners, Resellers and SI

In May 2023, Unit4 announced a strategic partnership with Phase 3, a provider of professional and managed services for HR, Payroll, and Finance technologies. By partnering with Phase 3, Unit4 customers will benefit from an accredited reseller partner who has nearly 20 years experience of in implementing people-focused technology, creating the potential for customers to do even more to support their people. With extensive knowledge of the Public Sector, Professional Services, and Nonprofit industries, Phase 3’s expertise means that the company can easily interpret Unit4's customer requirements and translate these into efficient implementations.

In October 2022, Unit4 unveiled a strategic collaboration with BDO USA, LLP, a prominent accounting and advisory firm in the nation. Together, Unit4 and BDO will assist organizations in enhancing their management of enterprise resource planning (ERP), human capital management (HCM), and financial planning and analysis (FP&A) requirements. The partnership will offer specialized guidance in areas such as systems integration, change management, finance optimization, digital transformation, compliance, and business consulting, ultimately aiming to achieve greater mission impact through people-centric processes.

Unit4's ecosystem consists of three categories of partners: Go-To-Market (GTM) Partners: These partners serve as an extension of Unit4's organization, handling sales, implementation, and support of Unit4 solutions. Service Partners: These partners undergo thorough training in Unit4 solutions to facilitate swift implementation, integrate solutions, and provide support services. Technology & Innovation Partners: These partners enhance the functionality and performance of Unit4 solutions through software extensions and integrations.

During Q3 2021, Unit4 recorded a 29% year-over-year growth in the value of contracts through partners. Additionally, the company expanded its dynamic and expanding partner ecosystem by welcoming five new service and GTM partners, namely Carahsoft, Omnitell Tech (OTT), Softsensor.ai, Marques Business Solutions, and Profitega Consultores S.C. Partners serve as an extension of Unit4, tasked with selling and supporting the company’s solutions. They undergo comprehensive training to facilitate rapid implementation, integrated solutions, and continuous service and support.

In July 2021, Unit4 disclosed that RSM US LLP (RSM) had renewed its contract with Unit4 for an additional five years. Under this agreement, Unit4 remains the exclusive provider delivering Unit4 Professional Services Automation (PSA) in the cloud to half of RSM's workforce, expanding its user base from four thousand to six and a half thousand employees.

In March 2021, Unit4 introduced the Partner Developer Program, Developer 4U, tailored to aid partners in constructing extensions to ERPx, thereby enhancing value for customers and fostering new revenue avenues for partners. Additionally, Unit4 intends to unveil its inaugural App Marketplace, Marketplace 4U, later this year, allowing customers to implement value-added applications. Developer 4U partners will benefit from access to development environments, extension kit training, and a certification program.

During Q3 2020, Unit4 disclosed a remarkable 65% year-to-date growth (compared to 2019) in the value of contracts through partners, showcasing the effectiveness of its revitalized global partner program. Alongside welcoming three new global strategic partners—Avalara, Immedis, and Pagero—Unit4 forged a partnership with groupelephant.com. This collaboration empowers Unit4 to harness groupelephant.com's extensive global presence and expertise in crafting, developing, and implementing ERP, HR, and Payroll systems—whether cloud-based, hybrid, or on-premises—for both private sector enterprises and public sector agencies.

Unit4 offers local access to sales, service, and support through its operations spread across numerous countries, including Australia, Austria, Belgium, Canada, Denmark, Estonia, Finland, France, Germany, Hungary, Indonesia, Ireland, Malaysia, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden, the UK, and the United States.

UNIT4 Cloud Infrastructure Insights

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Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

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