Once again, in 2016 our focus laid on business performance. Following the implementation of its digital platform strategy, Pentalog has strengthened its pyramid of services and obtained impressive results: a 70% contract renewal rate and a 20% average increase of the sales figure for our existing clients. The conversion rate also increased from 35 to 50%, whereas our recommendation rate remained the same (95%). More good news: we acquired 50 new clients!
After integrating RevSquare, the Pentalog Group reached a global sales figure of over $32M in 2016 (a 45% annual growth) and a staff of 1 000 persons.
Geographical areas, sectors and technologies
In 2016, we had 200 active clients from various sectors:
- 40% software publishers,
- 15% web or mobile application publishers,
- 15% e-traders,
- 8% industry players,
- the Internet of Things, banking and medical fields.
and of different types:
- 50% startups,
- 25% grownups,
- 15% large caps.
The number of mobile application development projects has increased by 20% (especially those projects using React native or Angular JS front end frameworks), and we can identify a similar trend for our .Net and Python projects.
In terms of geographical data, the USA now make up for 10% of the group’s sales figure, with several fruitful startup collaborations that started 2 or 3 years ago (see Sharalike success story and Bitgym success story) and great new innovative projects coming from the Silicon Valley and East Coast that perform very well. Several of our US clients won one or more business prizes in the past couple of years. France, the company’s headquarters, is the first on the list, with a sales figure of over 60% in 2016. The rest of Europe makes up for the remaining 20%. Despite the events the United Kingdom went through in 2016, our number of British clients has more than doubled. This is quite amazing in absence of a physical unit across the Channel! The Pentalog dedicated team working for Made.com since 2014 reached a size of 20 persons, with 4 different projects! New projects for clients such as Vizolution enjoyed rapid ramp-up to 12 people and more (20 team members for another UK client in financial services). And our 2017 backlog in this country is quite promising. We predict a growth of at least 50%. Our German subsidiary, Pentalog Deutschland, has reported an increase of 20% regarding its number of clients, positioning itself third behind the USA.
Our vertical IT service integration strategy has paid off
Our platform strategy, implemented a year ago, has brought us new consulting missions (Big Data, etc.) via Pentalog’s IT consulting department, the recruitment of Product Owners and especially the quick recruitment and availability of one Scrum Master per delivery center thanks to SkillValue. We are now able to ramp up an entire team in just a 4 weeks’ time and to launch your project in only 2 weeks following contract signature.
The platform’s “strategic design” layer will be developed together with RevSquare, the NYC agency specialized in marketing content and automation strategies and which reinforces our digital marketing offer: “Customer traction & acquisition“. This evolution should help us extend our activity on the US market but also reach new clients in Europe.
Pentalabbs’ excellent performance
Pentalabbs, the Group’s financial armed wing, made 3 successful investments: Fred de la Compta, Fanster by Byzon Media and Bluefox (a double investment in 2016), 2 reinvestments (Sharalike, SkillValue) and participated in RevSquare’s acquisition by Pentalog.
Also, 300 startup projects were analyzed and 15 events organized (afterworks at Château des Hauts and tech meetups in partner accelerators) in 2016.