cache/3bb7a69ec741282f1c8c629d5ea3fc75bff17380b4f89b059a83db4c414e5674

COM:RELEXSOLUTIONS

RELEX

  • Privately Held
Pros and Cons

Strong revenue growth with 31.8% YoY increase in 2023

Consistent ARR growth for 66 consecutive quarters

High customer satisfaction with above-average NPS scores

Expanding customer base with 73 net-new customers in 2023

Successful expansion strategy with 31% increase in existing customer business

Negative EBITDA, although improving from -13.5% to -8.2% YoY

Relatively low gross margin at 19.2% in 2023

High operating expenses leading to negative EBIT

Summary
Competition
RELEX operates in a competitive retail technology and supply chain management software industry. Major competitors include Blue Yonder (15% market share), Manhattan Associates (12%), and Oracle Retail (10%). RELEX differentiates itself through its AI-driven solutions and strong customer satisfaction, but faces challenges from both established players and innovative startups in a rapidly evolving market.
Business
RELEX Solutions is a provider of unified retail planning solutions, leveraging AI and machine learning to optimize supply chain, merchandising, and operations for retailers and manufacturers. Founded in 2005, the company has shown consistent growth, with a strong focus on customer satisfaction and innovation in retail technology. RELEX has expanded its global presence through both organic growth and strategic acquisitions, such as the recent acquisition of Optimity.
Recent Acquisitions

Optimity

Date: 2024-01-03

Rationale: To enhance retail and supply chain platform by integrating daily production planning, optimization, and scheduling capabilities.

Impact: Adds over 80 customers in food, beverage, and complex manufacturing sectors, enhancing production planning and supply chain optimization.

Formulate

Date: 2022-05-12

Rationale: To advance promotional planning solutions as part of RELEX's unified platform.

Impact: Demonstrated a 15% profit improvement on promoted items for customers.

Athena Retail

Date: 2022-05-24

Rationale: To amplify space and category management expertise.

Impact: Strengthens RELEX's space planning solutions for retailers and CPG companies.

Galleria RTS

Date: 2019-11-20

Rationale: To enhance retail optimization software offerings.

Impact: Strengthens RELEX's capabilities in supply chain management.

Zenopt

Date: 2019-06-27

Rationale: To add workforce optimization and management solutions to RELEX's offerings.

Impact: Aims to optimize work shifts based on store-level demand.

Forecast Solutions

Date: 2018-01-11

Rationale: To enhance presence in the Spanish market and prepare for expansion into Latin America.

Impact: Will serve as RELEX's 11th international office, providing advanced forecasting, replenishment, space, and assortment solutions.

Assessment

Growth

Revenue Organic

42% YoY growth in subscription revenue and 66 consecutive quarters of ARR growth indicate strong organic growth.

Revenue Overall

31.8% YoY revenue growth from €173.6M in 2022 to €228.9M in 2023 demonstrates excellent overall growth.

Profile

Multinational

Global presence evident from diverse customer base including companies from various countries.

Clear Market Leader

Strong customer base including major retailers and consistent above-average NPS scores indicate market leadership.

Buy-and-Build Platform

Recent acquisition of Optimity shows potential for growth through acquisitions, but limited information on overall strategy.

Resilience

Non-cyclical

RELEX's AI-based supply chain solutions are essential for retail operations, providing stability across economic cycles.

Revenue Visibility

66 consecutive quarters of ARR growth and 42% YoY subscription revenue growth in 2023 indicate strong revenue visibility.

Profitability

Gross Margin

Gross margin improved from 17.8% in 2022 to 19.2% in 2023, showing positive trend but room for improvement.

EBITDA Margin

Negative EBITDA in 2022 and 2023, but showing improvement from -13.5% to -8.2% year-over-year.

Cash Conversion

-

Insufficient information to assess cash conversion.