Breakaway Solutions, the full service provider, has reported revenue for the third quarter of $34.6 million, an increase of 230% from the $10.5 million in the third quarter of 1999.
“The needs of the marketplace are continuing to evolve at a dramatic pace,” said CEO Gordon Brooks. “We believe that the multi-partner delivery model is inherently weak and inefficient. More than ever, customers are demanding a full service provider that enables them to collaborate with other businesses. With our new service offerings such as ASP enablement, and enhanced managed services, we believe we are in a position to benefit from this market shift.”
Application hosting revenue grew 46% from $5.2 million in the second quarter of 2000 to $7.6 million in the third quarter of 2000. It made up 22% of total revenue as compared with 15% in the previous quarter.
For the quarter ended 30 September:
• revenue per billable consultant was $203,000.
• average billing rate was $186 per hour
• average monthly revenue per application hosting customer was $34,000.
Twenty-seven new customers were added in the third quarter, including NYCE Corporation, Press Access, Prophet 21, Webmedx, Morningstar, Acurion, FOL Networks, Ontrack Data, PacifiCare, ArsDigita, Green Zebras, The Hartford, Icor, Applix, Capital Newspapers, PRI Automation, Hoening Group, and Data Translation.
The company launched an ASP enablement offering that allows independent software vendors and vertical ASPs to leverage Breakaway Solutions to develop and host a version of their software. This one-to-many distribution model will help to support incremental services sales for future revenue growth.
Breakaway acquired Dublin-based Zartis.com and built European operations to 77 employees during the quarter.
Headquartered in Boston, Massachusetts, Breakaway has a network of regional offices and Internet Solutions Centers in major cities across the US and in Europe, as well as 11 application hosting facilities in North America, Europe, Asia and Australia.