TOTVS Strengths, Domain Expertise, and Key Differentiators
Buoyed by the explosive economic growth in Brazil, TOTVS has emerged as one of the largest software companies in Latin America through a series of acquisitions as well as a highly scalable franchise model. In fact, more than half of the 11,500-strong organization are employed by its franchisees.
With more than 26,000 customers and 80,000 enterprise contracts, TOTOVS has enjoyed an enviable position in the fragmented Brazilian market. The ubiquity of TOTVS as a business software leader has eclipsed other well-known consumer brands in Brazil. As a result, TOTVS is well represented across many parts of the Brazilian economy, selling into some of the country’s biggest companies, law firms, schools, and hospitals.
Because of its inside track into the public and private sectors in Brazil, TOTVS is expected to exert considerable influence over the IT direction of one of the world’s most vibrant countries over the next five years.
TOTVS Recent Developments
TOTVS is present in 41 countries. In Brazil, it has 15 branches, 52 franchises, 5000 distribution channels, and 10 development centers. Abroad, it has over 7 branches and 5 development centers (US, Mexico, China, and Taiwan).
In mid-2019, TOTVS launched new applications involving its artificial intelligence interface (AI), Carol.
TOTVS Mergers and acquisitions (M&A) Activities
In October 2019, TOTVS acquired Supplier, a B2B credit fintech. This was followed after TOTVS raised more than $250 million in May the same year. The idea is to leverage the capillarity and the sheer volume of data that passes through Totvs ERP systems toward financial services.
TOTVS Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying TOTVS 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 TOTVS 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 TOTVS ERP, customers.
Ownership: - BVMF:TOTS3
Number of Employees: 6971
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction, Real Estate, Consumer Packaged Goods, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith Based Nonprofit, Youth and Elderly Care Nonprofit, Special Cause Nonprofit, Oil and Gas, Professional Services, Retail, Transportation, Utilities,
TOTVS Key Cloud and HCM Applications
TOTVS HCM and Cloud HCM Applications Revenues, $M:
|Type/Year||2018||2019||YoY Growth, %|
|Total Revenues, $M||Subscribe||Subscribe||Subscribe|
|HCM Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
|Cloud HCM Applications Revenues, $M||Subscribe||Subscribe||Subscribe|
* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
TOTVS Revenue Breakdown by Type:
|Type||License||Services||Hardware||Support & Maintenance||SaaS|
|% of Total Revenues||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe|
TOTVS HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets
2019 HCM Revenues, By Sub-Functional Markets, $M
TOTVS HCM Applications Revenues By Verticals, $M:
TOTVS Total and HCM Applications Revenues by Region:
|Region||% of Total Revenues||2019 Total Revenues, $M||2019 HCM Applications Revenues, $M|
TOTVS Direct vs Indirect sales
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TOTVS Customers - Breakdown by Geo, Size, Vertical and Product
No. of TOTVS Customers: 40000
No. of TOTVS HCM Applications Customers: x
No. of TOTVS Cloud HCM Customers: 2500
No. of TOTVS Cloud HCM Subscribers: x
Of the 30,000 customers that Totvs has in its portfolio, 2500 already use their cloud services and at least half of them are running Totvs ERP applications and others using industry-specific solutions and middleware products.
Its key customers include: Laticinio Scala, Pacheco Neto Sanden Teisseire Advogados, Argo Construtora, Badesul, Blue Ville, Bonanza, EADI Sul, Golden Cargo, Groupo Teckma, Transportadora Americana, Uniao, Urbano, Usina San Jose, and Vereda.
TOTVS Market Opportunities, M&A and Geo Expansions
TOTVS has acquired Brazilian rival Bematech SA. The union will extend the presence of TOTVS in domestic retail and add hardware solutions and sales software currently used by establishments such as restaurants, hotels, and electronics stores.
In November 2015, TOTVS and Bematech launched together with its first offerings for retail, directed to the subsegments of clothing, supermarkets. The expertise of TOTVS in developing business solutions added to Bematech, with experience in hardware and software solutions for the point of sale, and resulted in deals that include integrated solutions for hardware and software. The offer oriented to the supermarket includes an ERP specialist in the food retail and adds the CRM (Customer Relationship Management), in addition to full compliance with the inventory control demands, pricing, logistics, and tax.
TOTVS Risks and Challenges
Any further slowdown in the Brazilian economy could hurt TOTVS's near-term prospects.
In addition, it may have to expand beyond Latin America more rapidly. TOTVS started operating in Argentina and Mexico in the 1990s while expanding into Portugal, USA, and 11 additional countries across the region more recently. With 300 employees and 13 distribution partners in more than a dozen countries, sales outside of Brazil remain a small part of its business.
At the technology level, it is not clear how TOTVS can expand in the Cloud by using a hodgepodge of proprietary middleware, along with technologies from IBM, Novell, Oracle, and Progress. The good news is that TOTVS already spends 12% of its revenues on R&D, a respectable amount of outlay compared with that of other key ERP vendors.
In 2019, TOTVS sold its hardware division-Bematech to Elgin. The transaction concluded at a value of US$6.25 million. Only 4 years prior, TOTVS bought Bermatech for $137 million, and in 2018 the hardware revenue accounted for 9% of total revenue.
TOTVS Ecosystem, Partners, Resellers and SI
Direct and Indirect sales. Expect in Sao Paolo, Totvs has offices in the rest of Latin America, Portugal and US.
TOTVS Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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- TOTVS Public Cloud and Infrastructure (IaaS)
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- TOTVS Private Cloud and Data Centers
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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