Nimsoft CEO: Yes, We’re Profitable
We’re careful not to hype the managed services market. Not everyone succeeds. But anecdotal evidence reinforces the fact that the managed services industry continues to grow. The latest example comes from Nimsoft CEO Gary Read’s personal blog, and some follow-up emails with MSPmentor.
In a February 1, 2010 blog entry, Read (pictured) thanked Nimsoft’s customers and employees for making 2009 a “banner year” for the company. Among the anecdotes Read offered up, Nimsoft…
- had over 40% growth in new bookings
- broke the $50m barrier in total bookings
- generated 70% growth in recurring revenue
Growth is nice. But is Nimsoft profitable? I reached out to Read for more thoughts. As a privately held software company, Nimsoft doesn’t have to disclose exact details about its financial performance. But Read did reply with a few timely tidbits of info.
My questions and his replies:
- MSPmentor: Was Nimsoft cash flow positive in 2009?
- Read: Yes, very much so. Not only for 2009, but also for every individual qtr in 2009.
- MSPmentor: Did Nimsoft generate positive net income in 2009 or any of the quarters within 2009?
- Read: Yes, positive net income for 2009.
Most of the major PSA (professional services automation) and RMM (remote monitoring and management) software companies provide clues about their growth and financial performance, if you listen closely enough. And Read frequently comments about software industry IPOs.
In yesterday’s email exchange, I didn’t raise the IPO or exit strategy question. I plan to do some follow-up on that topic — with a range of executives — later this month. In the meantime, anecdotal evidence suggests the managed services market continues to grow.