Annual Recurring Revenue Up 24% Y/Y for Veeam in 3Q19

Veeam Software, Inc. announced results from 3Q19 and yet again outpacing the market.

In an aggressive market that is seeing both legacy and newcomers falter, it has reported another quarter of double-digit growth with an annual recurring revenue (ARR) increase of 24% Y/Y (Y/Y) and uptake in its new Veeam Universal License (VUL) subscription pricing model which saw a 108% rise in bookings for the same period.

Veeam also reported that in its annual customer satisfaction survey it scored a Net Promoter Score (NPS) of 75; this score sees Veeam exceeding the market average, and is the 6th consecutive year the company has achieved this result.

“2019 has been a massive year for Veeam; not only have we surpassed $1 billion in annual bookings, we are also innovating the customer experience through new Veeam Universal License (VUL) subscription models and continued new product releases,” said Ratmir Timashev, co-founder and EVP sales and marketing Veeam. “In our last fiscal quarter, we saw tremendous growth across all markets, particularly our subscription business, taking our customer count to more than 365,000. As we enter 4Q19, we will be announcing a number of new solutions that will continue our market leadership, and as we have shown with our NPS score, we are exceeding customer satisfaction at every point.”

Customer, Product and Partner Highlights

• Enterprise business grew 20% Y/Y, with the company counting 81% of the Fortune 500 and 66% of the Global 2000 as customers, such as ABM, United Healthcare, Carmax and Micron. With more than 365,000 customers worldwide, new customers include Reynolds, Bahrain Credit, British Columbia Forest Practices Board, LCR Group, Azzurri Group, KPN, Vancouver Canucks, and Sydney Living Museums.

Backup for Microsoft Office 365, reported 113% growth Y/Y. It has now been downloaded by more than 84,000 organizations, representing over 9 million user mailboxes.
The Veeam Cloud & Service Provider (VCSP) program has more than 24,500 partners with over 4,000 of those also qualified to provide Cloud Backup & DRaaS using Veeam Cloud Connect.
Technology alliance resell agreements with HPE), Cisco, NetApp, and Lenovo reported 92% Y/Y growth, and a 28% Q/Q increase
For the 4th consecutive year, the vendor was named to the Forbes 2019 Cloud 100, the ranking of the top 100 private cloud companies in the world, published by Forbes in partnership with Bessemer Venture Partners and Salesforce Ventures.

“Over the past several years, Veeam has solidified itself as a leading provider of backup and recovery solutions for virtual, physical and cloud environments. Veeam’s partner-centric strategy and ability to adapt to the market with a focused approach have been cornerstones of its ongoing success, and have enabled Veeam to deliver consistent, double-digit revenue growth in a mature market segment that typically experiences low, single-digit growth,” said Andrew Smith, research manager, IDC infrastructure platforms and technologies group.

“If we can’t recover data quickly for our customers, the societal impact could be huge. One of our customers provides public-transportation planning information. If their data isn’t available millions of travelers won’t have the information they need to plan their itineraries and execute travel. Veeam helps us keep customers’ data available, so they can focus on adding value to society,” said Thing Zhu, technical director at KPN.

“Having point-in-time analytics at our fingertips is vital because it lets us proactively resolve issues at our restaurants. If one of our restaurants is off on labor costs, we’ll run an additional report to investigate further. If we notice a dip in sales, we’re able to identify the cause quickly and make informed decisions that improve operational efficiency, helping each brand maintain a leading position in a highly competitive market. Our legacy backup just wasn’t able to meet our business needs and was failing us. Veeam Backup & Replication takes Azzurri’s BC and DR strategy to the next level. Veeam protects data analyzed by IBM Cognos, a BI analytics solution that provides Azzurri with detailed sales, food cost, labor cost and financial reports. Veeam reduces recovery time from days to minutes, making data continuously available to Cognos so Azzurri can undercover hidden insights into daily restaurant operations,” said Jon Lee, IT infrastructure manager, Azzurri Group.

“If we were to put a monetary figure onto what value Veeam has added to this organization, it would be millions of $s. Our old data center could have burned down and we would have lost all our data and be absolutely nowhere today. If anything were to happen to the company, Veeam would be our savior,” said Ashlen Naicker, ICT executive, LCR Group.

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Annual Recurring Revenue Up 26% Y/Y in 2Q19 for Veeam
25 Jul 2019 | Press Release