Qumu Reports Fourth Quarter and Full Year 2020 Financial Results
2020 Revenue Up 15% to $29.1 Million and Subscription ARR Up 29% to $11.6 Million;
Management Reaffirms 20%+ Revenue Growth Target for 2021
MINNEAPOLIS – March 4, 2021 – Qumu Corporation (Nasdaq: QUMU), a leading provider of cloud-based enterprise video technology for organizations of all sizes, today reported financial results for the fourth quarter and full year ended December 31, 2020.
Q4 2020 and Recent Operational Highlights
•Hosted 32 million viewers on Qumu Cloud during the quarter, up 6% from Q3 2020 and up 880% from Q4 2019.
•Implemented a “Work from Wherever, Forever” policy for Qumu employees, phasing out dedicated office space in Minneapolis, London and Hyderabad and significantly reducing financial overhead in future years.
•Leveraged new geography-agnostic policy to attract major executive talent, strengthening and diversifying leadership team across sales, marketing, and customer success.
•Named a leader in 2021 Aragon Research Globe for Enterprise Video for the sixth time.
•Launched new Diversity, Equity and Inclusion Committee focused on increasing internal and third-party diversity and helping ensure a fully inclusive work environment.
•Solidified the balance sheet with the closing of a public offering of common stock on January 29, 2021, which provided approximately $23.1 million in cash to accelerate the company’s strategic roadmap.
•Secured a $10 million revolving credit facility with Wells Fargo Bank with availability determined by recurring revenue, maturing January 15, 2023; the company received an advance of $1.8 million and repaid the face amount of the note payable to ESW Holdings, Inc.
•Reiterated financial guidance for 2021 of at least 20% revenue growth compared to 2020.
Q4 2020 Financial Highlights
•Subscription, maintenance, and support revenue in Q4 2020 increased 23% to $5.4 million, compared to $4.4 million in Q4 2019.
•Total revenue in Q4 2020 increased 10% to $6.9 million, compared to $6.2 million in Q4 2019.
•Gross margin improved to 76% in Q4 2020 from 69% in Q4 2019.
Q4 2020 Key Performance Indicators
•Subscription Annual Recurring Revenue (ARR) increased 29% to $11.6 million in Q4 2020 from $9.0 million in Q4 2019.
•Software-as-a-Service (SaaS) customer retention:
◦Gross Renewal Rate (GRR): 94% at end of Q4 2020 compared to 90% at end of Q4 2019.
◦Net Renewal Rate (NRR): 128% at end of Q4 2020 compared to 115% at end of Q4 2019.
◦Dollar Value Retention: 103% at end of Q4 2020 compared to 90% at end of Q4 2019.
“In a transformative period for our business and the world, we finished the year strong and are well-positioned to meet our long-term growth goals,” said Qumu President and CEO TJ Kennedy. “Our improved quarterly and annual financial results demonstrate traction that is driving high-margin subscription ARR, which increased 29% to a record $11.6 million in 2020. Growing this valuable revenue base is a key priority within our long-term strategic roadmap, which is designed to position Qumu as a leader in cloud-first enterprise video. Combined with our healthy increase in gross and net renewal rates, we are setting the course for sustainable growth and high-margin, recurring SaaS
The following information was filed by Qumu Corp (QUMU) on Monday, March 8, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.