This last February here in the USA, President Obama delivered the annual State of the Union speech. In that same vein, we hereby present a State of Sawtooth Software.
Annual License Strategy Driving Strong Growth: So far in 2013, corporate annual subscription licenses have accounted for about 50% of software revenues. Frankly, we have been surprised by the uptake in the corporate annual subscriptions over the last three years. We knew it would be strong; but not this strong. The shift from single-user perpetual licenses to 10-user annual subscription licenses has led to a surge in the number of users across the world of our software tools. Now, rather than focus a company's Sawtooth Software talents within just one or a very few people, with the flexible 10-user license firms are training more people on our tools to develop broader expertise.
Training Events Habitually Selling Out: We cap our workshop courses at 25 because we've found that trying to train any more than that at a time becomes too much and degrades the experience for all involved. We recently sold out our workshops in Florida (January 2013), Berlin (April 2013), and Chicago (May 2013). We think that the growing attendance at our events is directly related to the success of the corporate annual licenses. Firms are increasing the number of Sawtooth Software users due to the flexibility of the 10-person license and are sending more folks to our events to receive training. Not surprisingly, we're now scheduling more events. Our next CBC workshops are in July and October. We also will be holding an MBC workshop in October.
Software Development Team Strengthening: The core of our software development team has been together for more than 10 years. (We have extremely low turnover within our organization.) We have increased our hiring over the last two years to add some new and talented developers as well. Porting SSI Web to the C# platform recently has led to further efficiencies.
Academic Strategy: For decades now, we've reached out to the academic community with steeply discounted student lab systems and a generous grant program. Professors have encouraged us to make it even easier for their students to use Sawtooth Software in the classroom. As a result of this feedback, we have revamped our academic licenses. We now sell annual student lab subscriptions ($1,000/year per school) that include hosting and access to our online simulator. We are offering (for existing academic student lab customers) this annual license for free until June 30, 2014. This is making it much easier for students to execute studies and collect data! We are also investigating ways for students (many of whom use Apple devices) to use our flagship CBC software via a simplified "software as a service (SaaS)" approach.
Sawtooth Analytics Consulting Business: With the recent hire of Keith Chrzan, we got a big infusion of experience for our consulting wing. Not only is Sawtooth Analytics generating new revenue, but importantly our consultants are bringing new ideas for product improvements (including finding bugs before our users can find them!).
Improved Website Coming Soon! Our website has exceptional content, but it's in serious need of a style makeover. Within the next month or so we hope to move to our new website. Same exceptional content; more modern look and feel.
In sum, we cannot think of a time when both the recent performance of the company and the future prospects were brighter. Not, to mention, we are having a great deal of fun executing our strategy and working with our excellent customers. You are such fine people and we love interacting with you!