GAINESVILLE, FL / ACCESSWIRE / July 17, 2019 / SharpSpring, Inc. (NASDAQ: SHSP), a leading cloud-based marketing automation platform, secured 290 new customers for its core marketing automation platform during the second quarter of 2019. The new customer additions are expected to generate approximately $2.1 million in annual recurring revenue. At quarter-end, the company had 1,854 agency partners using and reselling its marketing automation platform.
"In the second quarter we successfully grew our year-over-year agency partner sales once again, reflecting the consistent, strategic focus of our business as this group represents our highest value customer segment," said company CEO Rick Carlson. "As for non-agency, or direct, customers, in Q2 we updated contract terms from a monthly to annual model with the goal of addressing early attrition observed for this segment. Annual contract terms ensure direct customers initially commit to a term that allows them to realize the full benefit of our platform before coming up for renewal. While this change had an impact in the near-term sales in this segment, it should lead to higher long-term value for each of the direct customers that we did sell.
"In addition, we experienced a softness in sales activity within our international partner channel, specifically in Brazil, which has historically been an additional source of new business for us, but one that represents lower MRR and lifetime value. The lower lifetime value of these partner channel sales means they are not a primary growth driver for our business and will have minimal impact on our long-term revenues. Overall, units sold were lower for the quarter due to these changes outlined, but the quality of sales during the quarter has improved, and we therefore expect long-term revenues from these sales to be largely in line with previous quarters.
"Going forward, we expect to continue growing our business at recent levels and believe that the quality of customers we're bringing on will continue to improve thanks to heightened focus in this area. Taking a step back, SharpSpring remains in its strongest position in company history. We have been recognized with three major industry awards in the last month alone, which speaks to the quality of our offering and the service we provide. Additionally, with the new premium offerings we recently began rolling out, we have additional vectors for growth beyond our current business. We're confident that the measures we're taking to ensure greater customer success on our platform will ultimately lead to significantly higher revenue retention and lifetime values as a result."
SharpSpring plans to report its complete financial results for the second quarter of 2019 in August. The conference call details will be announced prior to the call.
About SharpSpring, Inc.
SharpSpring, Inc. (NASDAQ: SHSP) is a rapidly growing, highly-rated global provider of affordable marketing automation delivered via a cloud-based Software-as-a Service (SaaS) Platform. Thousands of businesses around the world rely on SharpSpring to generate leads, improve conversions to sales, and drive higher returns on marketing investments. Known for its innovation, open architecture and free customer support, SharpSpring offers flexible monthly contracts at a fraction of the price of competitors making it an easy choice for growing businesses and digital marketing agencies. Learn more at sharpspring.com.
Company Contact:
Brad Stanczak
Chief Financial Officer
Phone: 352-448-0967
Email: IR@sharpspring.com
Investor Relations:
Gateway Investor Relations
Matt Glover or Tom Colton
Phone: 949-574-3860
Email: SHSP@gatewayir.com
SOURCE: SharpSpring, Inc.
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