Aconex: revenues up but expansion increases losses

Aconex reports growing revenues, but expansion increases losses for year to June 2013.

Melbourne, Australia-based Software-as-a-Service construction collaboration technology vendor Aconex reported revenues up 18% in the year ending 30 June 2013. The business, now increasingly establishing itself in the USA, grew from Au$44.3m in 2012 to global revenues of Au$52.6m (£28.4m or US$46.8m). The company’s EBITDA showed a loss of Au$8.89m (c. £4.8m or US$7.9m) compared to 2012′s $3.27m loss (post).

This was the second successive increase in revenues following the Global Financial Crisis ‘plateau’, though the rate of growth is clearly less steep than before the recession. The loss is the biggest in Aconex’s reported history, though subsequently restated losses have been higher.

Aconex Revenues Profit/Loss December 2013


According to Aconex’s annual report, the revenue increase was a result of continued business expansion across key customer markets and new product offerings (including Aconex Field for mobile field inspections and issues management [post], and Aconex Smart Manuals for the handover of operation and maintenance documentation at project completion [post]; there was no significant mention of its e-tendering operation Bidcontender – post). The company reports that it is now developing a BIM (Building Information Modelling) solution to help customers manage big data in processing multi-dimensional models and data files in a collaborative project environment. This BIM solution is being beta-tested by several key customers before its official launch in Q4 FY14 (April-June 2014).

Operating expenses increased by 36%, from $34.0m in 2012 to $46.1m in 2013 – reflecting, Aconex said, continued investments in product development, as well as sales and marketing for key customer markets, particularly the Americas region. This contributed to the EBITDA loss, while cash flows from operations and investment activities were (Au$6.9m) compared with Au$1.1m for 2012.

“The year-over-year change in EBITDA loss and cash flows primarily reflected the Company’s initiatives to increase sales and marketing activities in key growth markets. In addition to the Americas, these include Asia, the Middle East and Australia and New Zealand (ANZ).”

No breakdown of revenues by region is reported this year (in 2012 revenues were heavily dependent on Aconex’s domestic market in Australasia, which accounted for roughly half of its income).

To put Aconex’s revenues in context, its 2013 total is almost double that of German and UK-based SaaS vendor Conject, which in May this year asserted it was the second largest SaaS vendor in the architecture, engineering, construction and operator space.

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