2010 Financial Results: Green Fields, Blue Sky
2010 was an exceptional year for Intralinks, our employees, our customers and our investors
17 February 2011
Today marks our first time as a public company that we’re releasing full year financial results. Investors, analysts, customers and employees are either eager or simply curious to see how we’ve performed both in Q4 and for the full year 2010. In many ways, it feels like just another year has gone. However, this year is clearly different as we’re now a public company and have the opportunity to tell the world about our financial performance in 2010.
2010 was an exceptional year for Intralinks, our employees, our customers and our investors. Highlights from our full year financial results include:
- Strong growth in our Enterprise and M&A principal markets drove record revenue of $184.3 million in 2010, up 31% over 2009.
- Non-GAAP operating income was $45.6 million, up 36% over 2009 and yielding an operating margin of 25%.
- Non-GAAP adjusted EBITDA was $62.6 million, up 39% over 2009, and yielding a best in class 34% EBITDA margin compared to other SaaS companies.
Our Q4 results were also stellar. Total revenue for Q4 came in at $52.1 million, up 33% year-over-year. This was highlighted by Enterprise revenue of $23.0 million, up 39% year-over-year, and M&A revenue of $20.0 million, up 46% year-over-year.
In 2010, we experienced strong momentum across our Enterprise and M&A principal markets. Our nearly 50% growth in the Enterprise business was driven by both 461 new customers and over 1,000 existing customers, as they continue to move from the old way… fax, overnight courier, paper and email… to the Intralinks way.
Coming out of the worst financial crisis in my lifetime, 2010 was a banner year for our M&A business, with revenue growing 35% over 2009. We signed 2,467 new M&A customer contracts in 2010, a new high water mark for Intralinks.
The renewal rate on our subscription contracts, in dollar terms, was 104% in 2010 compared with 93% in 2009, indicating customer loyalty, customer commitment and the broader adoption of enterprise use types.
We expanded our vertical and horizontal offerings in 2010, providing additional fuel for our future growth. Our General Counsel (GC) and Chief Financial Officer (CFO) solution suites are examples of expanding our horizontal use types in 2010. We migrated our safety reporting, study startup and study conduct offerings to our new ILP platform enhancing each of these offerings significantly. As a result, we grew our Life Sciences revenues 72% year over year. We signed multi-year, multi-million dollar contracts with two of the largest biotech and pharmaceutical companies in the world.
So, after announcing positive results for Q4 and for the full year 2010, “What’s next?”
Though we accomplished a lot in 2010, there is much opportunity ahead of us in 2011 as we continue to expand our market opportunity and drive the broader adoption of Intralinks in the Enterprise.
I’d like to highlight 6 key initiatives and priorities that will drive our business in 2011 and will position Intralinks for further growth in 2012.
Our First key initiative is focused on ramping the adoption our GC and CFO solution suites we launched in 2010. The GC solution suite use types include:
- Intralinks Legal Repository
- Intralinks for Contract Management
- Intralinks for Regulatory Filing
- Intralinks for Legal Collaboration
- Intralinks for Board of Directors Communications
CFO use types include:
- Intralinks for Audit Management
- Intralinks for Corporate Finance Repository and
- Intralinks for Corporate Development
I expect our GC and CFO solution suites to gain momentum in 2011 and contribute to Enterprise revenues in 2011.
Our Second key initiative is to continue to drive the impact of Intralinks adoption within the Life Sciences community both within existing Life Sciences clients as well as winning new Life Sciences clients. We look to continue the momentum we built in 2010 into 2011 on the back of expanding our sales resources.
Our Third key initiative is to continue our focus on winning M&A market share. We had a great year in winning market share from the financial printers in 2010 and we have programs that position us well to continue doing so in 2011.
Our Fourth key initiative is to expand our markets by identifying new horizontal and vertical use types and validating those with key initial customers.
Our Fifth key initiative is to make our Intralinks platform, which we call ILP, more “Partner Ready”. Our goal is to make it easier for partners to leverage the Intralinks platform in support of our Enterprise selling initiatives to further enable our customers to integrate Intralinks into their existing IT infrastructure. Our primary area of focus in 2011 is to leverage the partner ecosystems of Microsoft SharePoint and Salesforce.com.
Lastly, we are focused on leveraging our strong market position in Debt Capital Markets. We will begin the migration of our DCM customers over to the Intralinks Platform or ILP in the latter half of 2011. Our DCM clients will benefit from the rich and expanded capabilities in ILP.
I’m pleased with our 2010 performance and excited about the initiatives for the year ahead. I truly believe that we’re in a strong position as we head into 2011 and beyond. All I see is green fields and blue sky!