HCM systems provider CatalystOne has reported its highest level of annual recurring revenue during the first half of 2021, on the back of a maturing market.
Annual recurring revenue passed 110 MNOK in the first half of the year, reflecting a 41% growth rate for the last four quarters.
When the pandemic kicked off in March last year, the company anticipated a struggle ahead as many businesses were forced to restructure and often downscale due to a slowdown in economies across the world.
However, the overnight switch to virtual and remote solutions, meant organisations suddenly required digital systems to more efficiently log and manage HR tasks such as absence, onboarding, offboarding and so on.
Hand in hand with an urgent need to reorganize and restructure for many, the importance of having systems with up-to-date real time overviews of core HR data was bought to the fore.
With change and volatility as the new norm, the lack of such a system has a significant impact on a company’s ability to be agile and to evolve at pace.
“Companies realised that they did not have a clear overview of headcounts and competencies of different teams and departments – and that to get one was often a manual process that could take days” says CatalystOne CEO Avtar S. Jasser.
“This makes it harder for them to respond to unanticipated events and rapid business developments. Today organisations must be able to quickly change their goals, direction, and utilisation of their workforce – and to be able to do this, HR and management need relevant and correct workforce data at their fingertips.
“I remember the days when HCM was nice-to-have for those who had the privilege to spend money on such a luxury. Today it has become a need-to-have when companies that have gone through financial challenges prioritise the investment.”
The company has also seen rapid growth among its existing customer base. In the first half of 2021, 74% of existing customers purchased additional licences and/or modules. Net retention revenue came in at 118% in the last four quarters, reflecting high customer satisfaction and loyalty.
The switch to more remote working and hybrid work environments has seen organisations looking for new ways to keep employees informed, engaged, and motivated. This has led to an increased interest in performance, competence, learning and engagement modules within CatalystOne which allow HR and team managers to promote organizational culture, openness, feedback, and recognition.
These tools provide automated processes, with accompanying steps and templates which not only save time and improve efficiency but can also act as a supporting guide for managers. At the same time, they can provide employees the opportunity to learn and develop along chosen paths remotely and at their own pace.
As these trends – which are only starting to pick up pace – continue to grow, CatalystOne expects to see its own continued growth, with a pipeline suggesting it’s in for its best year yet.
“Our success has not come over night,” says Jasser.
“We have had a consistent strategy for many years and have built on this step-by-step. This has accumulated to a strong market position where satisfied customers buy more and "sell" on our behalf to other customers.
“And just as importantly we have ensured we don’t lose focus of our greatest asset – our people. We have made very conscious decisions on ensuring we maintain a culture of transparency, trust and openness as well as continued focus on developing our employees – and our software has helped us to do this.”