2023 ended with a stagnant third quarter for mdf Commerce Inc., a provider of e-procurement applications and services. The corporate serves a growing variety of primarily U.S. state and native government agencies.
For the third quarter of fiscal 2024, which ended Dec. 31, Vancouver, Canada-based mdf posted revenue of $30.2 million. That represented a decrease of $1.5 million — or 4.6% — from $31.7 million in Q3 fiscal 2023. Net loss was $4.2 million for the third quarter of fiscal 2024 compared with net earnings of $15.1 million in 2023, which included a $22.9 million gain on the disposal of InterTrade, an electronic data interchange (EDI) and B2B integration program for ecommerce platforms.
InterTrade was acquired by SPS Commerce in October 2022.
Public sector e-procurement priorities at mdf
“Over the past two years, we’ve got consolidated our product offering to supply a totally digitized government – sorry, procurement platform that gives buying agencies reminiscent of states, counties, cities, et cetera, the flexibility to achieve efficiencies related to implementing our technology,” CEO Luc Filiatreault told analysts on a recent earnings call, based on a transcript from In search of Alpha.
Chiefly, Filiatreault pointed to the impact this move has had on mdf’s revenue.
“This has shifted annual recurring revenue from tens of 1000’s of dollars to tons of of 1000’s and even tens of millions for larger organizations,” he said.
Moreover, mdf financial metrics reported for its Q3 include:
- E-procurement platform revenues were $20.7 million, a rise of 4.5% in comparison with $19.8 million in Q3 fiscal 2023.
- The year-to-date revenues from the e-procurement platform were $61.2 million, a 7.4% increase from $57.0 million within the prior yr.
- The procurement platform represents 69% of total consolidated revenues in Q3.
Forward-looking priorities for mdf
Specifically, Filiatreault outlined a comprehensive focus that mdf has applied to its offerings with an overall priority placed on capturing opportunities throughout the public sector as digital transformation progresses.
“Our fully integrated end-to-end suite of e-procurement products are offered in modules, source, contract, procure, connect and shop – these solutions enable a whole transformation program for public sector procurement,” Filiatreault told analysts. “Our suite of products uniquely supports digital transformation in the general public sector.”
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