Demandware Announces Fourth Quarter And Year End 2012 Financial Results

Demandware®, Inc. (NYSE: DWRE), the industry’s leading provider of enterprise cloud commerce solutions, today announced financial results for its fourth quarter and year ended December 31, 2012.
  • Live customers reached 151 at year end, an increase of 50% from 101 at year end 2011
  • Live sites reached 579 at year end, an increase of 60% from 361 at year end 2011
  • Fourteen customers generated more than $100 million in gross merchandise value over the Demandware Commerce platform in 2012, up from seven customers in 2011
  • Contract backlog (consisting of committed minimum subscription plus deferred revenue) reached $208.2 million as of December 31, 2012, an increase of 47% over $141.8 million as of December 31, 2011
  • Subscription dollar retention rate exceeded 100% in 2012 and customer churn was less than 5%

Subscription revenue in the fourth quarter was $22.9 million, a 40% increase over $16.3 million in the fourth quarter of 2011. Total revenue for the fourth quarter was $26.3 million, a 41% increase from $18.6 million a year ago. On a comparable basis, excluding the $162,000 and the $1.8 million in subscription revenue in the fourth quarters of 2012 and 2011, respectively, from Neckermann GmbH, a Demandware customer that filed for insolvency proceedings on October 1, 2012, subscription revenue for the fourth quarter grew 56%. Excluding the $1.3 million and the $2.3 million in total revenue from Neckermann in the fourth quarters of 2012 and 2011, respectively, total revenue grew 53%.

Total subscription revenue for 2012 was $67.9 million, an increase of 44% over $47.2 million a year ago. Total revenue for the year ended December 31, 2012 reached $79.5 million, an increase of 41% over $56.5 million in 2011. Excluding the $4.3 million and the $7.1 million in subscription revenue from Neckermann in 2012 and 2011, respectively, subscription revenue grew 59% in 2012. Excluding the $6.8 million and the $9.1 million in total revenue from Neckermann in 2012 and 2011, respectively, total revenue grew 53% in 2012.

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