Bronto Posts Strong 2006 Results with Profitable Revenues and Expanded Management Team
Email marketing software company achieves 76% revenue growth
Durham, NC - January 09, 2006 - Email marketing provider Bronto Software, Inc. today announced that the company continued its pattern of profitability recording the fifth profitable year in five years of business. In 2006, the company generated $3.1M in annualized revenue from its subscription model business, a 76% increase over the previous year. The fourth quarter of 2006 was an especially productive period for Bronto as 73 new customers were added and annualized revenues increased 52% over the same quarter in 2005.
Fueled by explosive growth in the online retail and interactive agency markets, in particular, Bronto's customer base grew 32% in 2006, boosting its count to 644 active clients. In addition, Bronto noted growth in the size of new customers signing up for their services. The average annualized revenue per customer increased over 30% in 2006 versus 2005.
New clients included online retailers such as Lake Champlain Chocolates and Blooms Today, as well as Coakley Heagerty, an integrated marketing communication agency. Other notable clients include Alliance Atlantis* Motion Picture Distribution LP, Mauri Pro Sailing, and TransAmerican Auto Parts.
Mauri Pro Sailing has seen great success this year since incorporating Bronto's email marketing solution, with open rates that are 105 percent higher than the industry average and clickthrough rates are 288 percent higher. "Bronto's program has given us the ability to see what works and what doesn't. We are able to refine and continually improve our communications based on user reaction and response," said Juan Mauri, owner of Mauri Pro Sailing. "We've seen tremendous benefits from using Bronto's technology."
Bronto marked 2006 by instituting a number of changes designed to support their stellar growth, particularly in technology and the management team. The product software was entirely re-architected to provide a stable, scalable technology for the present and the future. In addition, a new data center was utilized to take best advantage of the capital investment in the company's infrastructure. A steady stream of product updates throughout the year ensured that clients always maintain the benefits of Bronto's continuous improvement philosophy.
In order to maintain and further improve its exemplary level of customer service, Bronto expanded its management team by adding Carolyn Sparano as director of client services and Susan Russo as director of marketing. Prior to Bronto, Carolyn served for four years as vice president of global technical support at Red Hat. Susan comes from VisionPoint Marketing, an interactive agency where she served as COO. Her prior experience includes founding partner of @plan and marketing director of The New York Times.
"We are very proud of the Bronto team accomplishments this past year as well as the continued success of our customers," said Joe Colopy, Bronto CEO. "It has always been our goal to continually innovate our product and services to meet the demands and needs of our diverse customer base. With a strong management team in place and the support of our growing infrastructure, we look forward to propelling our company into a prosperous 2007."
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