The ERP Minute Episode 67: December 6, 2022

Hi and welcome to episode 67 of The ERP Minute. I am your host, Rebekah McCabe. 

Last week, a number of vendors announced financial results for the fiscal third quarter of 2023 and end-of-year results for 2022. 

First, Workday announced results for the fiscal 2023 third quarter, which ended October 31, 2022. Total revenues were $1.60 billion, an increase of 20.5% from the third quarter of fiscal 2022. Subscription revenues were $1.43 billion, an increase of 22.3% from the same period last year. 

Next, Salesforce released results for its third quarter fiscal 2023, ending October 31, 2022. Salesforce’s revenue was $7.84 billion, up 14% year-over-year. Subscription and support revenues were $7.23 billion, an increase of 13% year-over-year. 

Then, Intuit Inc., the global financial technology platform that makes TurboTax, Credit Karma, QuickBooks, and Mailchimp, announced financial results for the first quarter of fiscal 2023, which ended October 31, 2022. Intuit grew its total revenue to $2.6 billion, up 29%. Specifically, within its QuickBooks offering, QuickBooks Online Accounting revenue grew 29% in the quarter, driven primarily by customer growth, higher effective prices, and mix-shift. 

Finally, UKG announced its fourth quarter and fiscal year 2022 results, ending September 30, 2022. Fourth-quarter revenue grew to $960 million, with full-year revenue increasing to approximately $3.66 billion. Subscription revenue grew 15% in fiscal 2022 compared with the prior year. 

These financial results announcements further cement the position of ERP in the overall software market. Despite murmurs surrounding the bleak outlook for the economy, the ERP market continues to increase at a rapid rate, with billions of dollars being invested in the market, a trend that is very likely to continue firmly into 2023. 

In ERP acquisition news, Aptean announced its acquisition of Mistral Group, a French provider of enterprise resource planning solutions designed for dealers and distributors of agricultural and construction equipment. 

Aptean continues acquiring ERP solutions to build upon its current technology stack, following the trend of other vendors across the industry. Many vendors are acquiring niche ERP solutions to build out their platforms while enhancing the viability of these niche ERP solutions for the future of their customers. Changes and acquisitions like this will require analysis from legacy customers and those on these niche platforms to determine the impacts on their systems moving forward. 

Finally, AWS debuted AWS Supply Chain, a new application that helps businesses increase supply chain visibility to make faster, more informed decisions that mitigate risks, save costs, and improve customer experiences. AWS Supply Chain automatically combines and analyzes data across multiple supply chain systems so businesses can observe their operations in real-time, find trends more quickly, and generate more accurate demand forecasts that ensure adequate inventory to meet customer expectations. 

AWS itself provides value chains and value networks with operational, very detailed level information that is not present in enterprise systems. AWS leveraging this information and the addition of tools surrounding the application to assist customers in utilizing the system is going to be extremely helpful to users. We expect other technology providers, including cloud, data, network, and service providers, to develop similar solutions to drive down costs. These micro-value-chain networks have been developed through customers running on AWS, driving these web service providers to deliver enhanced features within these networks. 

Thanks for tuning into The ERP Minute. We are always looking for newsworthy material to share with our listeners, so send us breaking ERP news! Be sure to subscribe to our Apple Podcast, Spotify, and YouTube channels so you never miss an episode. We’ll see you next week.