Latest Study

Benchmarking Study (October 2019)

Microsoft ERP Partners in Europe and North America representing approximately
US$500m combined revenue were analyzed, with an overall revenue breakdown as follows:

Study participants were then broken into 3 distinct profitability segments, as follows:

  • Top Profitability Quartile
  • Bottom Profitability Quartile
  • Middle Profitability Half

Within each profitability segment, median values were calculated with respect to 18 key performance indicators, such as:

  • EBITDA
  • % revenue recurring
  • % revenue SaaS
  • Realized billable markup rates
  • Annual hours billed per billable resource
  • Hourly chargeout rates
$72,600,000
$25,000,000
$9,000,000
$7,350,000
$5,750,000
$4,500,000
$3,500,000
$1,300,000

Median = $6,550,000

Definitions

  • Median - the middle value of a dataset, with half the values higher and half lower
  • Top Quartile - the top 25% of the dataset
  • Bottom Quartile - all values between the top and bottom quartiles
  • Middle Quartile - the bottom 25% of the dataset

An example of some of the survey findings is below, relative to operating expenses across the 3 profitability segments.

Median OPEX % of Revenue

  • G&A Costs % of Revenue
  • R&D Expenditures % of Revenue
  • Marketing Costs % of Revenue
  • Sales Costs % of Revenue
Total = 18.6%
10.6%
1.2%
6.9%
Top Profitability Quartile
Total = 25.1%
12.7%
1.0%
2.0%
9.3%
Middle Profitability Half
Total = 39.4%
16.6%
10.8%
4.0%
8.1%
Bottom Profitability Quartile
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