Article | November 6, 2019

9 Steps To How "One Subscription System Of Record" Helped Create A Unicorn

Source: Sage Intacct, Inc.

By David Appel, Sage Intacct


“Billionaire Robert F. Smith’s Vista Equity Partners has agreed to acquire a majority stake in Acquia Inc. in a transaction valuing the enterprise software company at close to $1 billion, including debt, according to people with knowledge of the matter.” 

What did Acquia, the leading provider of cloud-based, digital experience management solutions, do on the financial front to gain this kind of attention?  

Let’s go back in time several years. They were expanding internationally with a land-and-expand billing model, and every day the finance team was manually managing the complex MEA transactions with siloed billing, revenue in spreadsheets, and cash-based accounting. Until one day, they had to deploy ASC 606 at the same time as they managed over 1,600 customer contracts. In order to scale, they decided to deploy Sage Intacct to be the single source of financial truth for subscription billing and revenue management that automates forecasting on billings, cash, and revenue.

Since that day, with a single subscription system of record, they natively integrated the order from Salesforce directly to subscription billing in Sage Intacct, cutting order to bill processing time by 50%. This led to reducing DSO by 20% and reducing their deferred AR balance by one third. All of this led to an operational cash flow increase of tens of millions of dollars.