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MGI 360 TM RATINGS MARKET RATING REPORT (MRR) Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019 1 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644 SUMMARY This MGI 360 Market Ratings Report (MRR) provides ratings of leading suppliers of Agile Billing software and provides strategy and product selection recom- mendations for organizations evaluating providers in this market. The report summarizes MGI 360 scores of 16 leading suppliers using a quantitative rating (0 to 100) and a qualitative Outlook (Positive, Neutral or Negative). Vendors whose ratings are presented in this MRR include Amdocs (Optima), Aria Systems, BillingPlatform, ChargeOver, Chargify, Ericsson AB, Fusebill, Gotransverse, JustOn Gmbh, NetSuite (div of Oracle), OpenCell, Oracle (BRM), Recurly, RecVue, SAP SE, and Zuora. Several other suppliers covered by MGI Research but not yet rated (e.g., Salesforce.com, Apttus, Chargebee, Logisense, et. al.) are also dis- cussed. This MRR is aimed at helping users make better, more informed and timely strategy and purchasing decisions. The MRR details growth drivers and barriers to growth, key market segments, major requirements for billing software solutions, outlines a path to evolving legacy to agile billing solutions, and highlights strate- gies and best practices for success. This report is a licensed reprint that contains an extract of the original report. WHY RATE TECHNOLOGY SUPPLIERS Business technology investment decisions are complex processes involving large amounts of money, time, and risk. As is the case with the market for monetiza- tion tools, buyers face an ever-expanding roster of suppliers. Many are well funded and covered by press and industry analysts. There is no lack of information, but the challenge for business and technology decision makers has been to extract signal from industry noise, to separate fact from marketing hype, to get truly inde- pendent advice. Clarity is often a casualty of a well-funded technology market. Technology buyers are caught in a dilemma: spend too little time on evaluating a solution and one can put a business at risk, but spend too much time and one can put a budget and time-to-market at risk. The risks faced by buyers in this context are significant. No executive wants to be in a situation where a long-term technological and financial commitment is made, only to realize later that the company with which the executive made the commitment is a financial sham, or that its business practices reflect a nickel-and-dime approach to customer service, or that the company strategy leads to a technological dead-end. In 2013, to help technology buyers navigate intelligently through complex market landscapes MGI Research
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Page 1: MGI 360TM RATINGS · Agile Billing Solutions – A Buyer’s Guide (Licensed ... (Positive, Neutral or Negative). Vendors whose ratings are presented in this MRR include Amdocs (Optima),

MGI360TMRATINGSMARKETRATINGREPORT(MRR)

AgileBillingSolutions–ABuyer’sGuide(LicensedExtract) Jan 9, 2019

1 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

SUMMARY This MGI 360 Market Ratings Report (MRR) provides ratings of leading suppliers of Agile Billing software and provides strategy and product selection recom-mendations for organizations evaluating providers in this market. The report summarizes MGI 360 scores of 16 leading suppliers using a quantitative rating (0 to 100) and a qualitative Outlook (Positive, Neutral or Negative). Vendors whose ratings are presented in this MRR include Amdocs (Optima), Aria Systems, BillingPlatform, ChargeOver, Chargify, Ericsson AB, Fusebill, Gotransverse, JustOn Gmbh, NetSuite (div of Oracle), OpenCell, Oracle (BRM), Recurly, RecVue, SAP SE, and Zuora. Several other suppliers covered by MGI Research but not yet rated (e.g., Salesforce.com, Apttus, Chargebee, Logisense, et. al.) are also dis-cussed. This MRR is aimed at helping users make better, more informed and timely strategy and purchasing decisions. The MRR details growth drivers and barriers to growth, key market segments, major requirements for billing software solutions, outlines a path to evolving legacy to agile billing solutions, and highlights strate-gies and best practices for success. This report is a licensed reprint that contains an extract of the original report.

WHYRATETECHNOLOGYSUPPLIERS Business technology investment decisions are complex processes involving large amounts of money, time, and risk. As is the case with the market for monetiza-tion tools, buyers face an ever-expanding roster of suppliers. Many are well funded and covered by press and industry analysts. There is no lack of information, but the challenge for business and technology decision makers has been to extract signal from industry noise, to separate fact from marketing hype, to get truly inde-pendent advice. Clarity is often a casualty of a well-funded technology market. Technology buyers are caught in a dilemma: spend too little time on evaluating a solution and one can put a business at risk, but spend too much time and one can put a budget and time-to-market at risk. The risks faced by buyers in this context are significant. No executive wants to be in a situation where a long-term technological and financial commitment is made, only to realize later that the company with which the executive made the commitment is a financial sham, or that its business practices reflect a nickel-and-dime approach to customer service, or that the company strategy leads to a technological dead-end. In 2013, to help technology buyers navigate intelligently through complex market landscapes MGI Research

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

2 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

introduced the MGI 360 Ratings – a uniform 0 to 100 supplier rating system. Whether applied to new purchases or to an existing solution portfolio, MGI 360 is a consistent, clear supplier rating scale that helps business executives and IT organizations get a head start on supplier due diligence, speed up sourcing, reduce risks and improve supplier relationships.

KEYISSUESFORAGILEBILLING

§ What drives the business case for Agile Billing?

§ What are the emerging Agile Billing requirements?

§ What is the role of Agile Billing in Agile Monetization Platform (AMP)?

§ What is the relationship between Agile Billing and other AMP disciplines such as Configure-Price-Quote (CPQ), Automated Revenue Recognition (ARR), and Contract Lifecycle Management (CLM)?

§ What are the strategic priorities for Agile Billing in terms of investment, human capital, supplier partnerships, and business strategy?

§ What are the best practices for evaluating, adopting, and implementing Agile Billing?

§ What are the costs associated with evaluating, implementing, and operating an Agile Billing solution?

§ What are the different market segments of Agile Billing?

§ Which suppliers will emerge as leaders in Agile Billing?

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

3 Disclaimer: Information and opinion furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

About MGI Research MGI Research is an independent industry research and advisory firm focused on disruptive trends in the technology industry. The firm was founded in 2008 by a group of senior analysts and executives from firms such as Gartner, Soundview and Morgan Stanley. MGI Research analysts typically bring with them over twenty years of tech industry experience as IT and/or supplier executives, Wall Street professionals, management consultants, or academics. Through its research, ratings, advisory engagements, industry studies, and conferences, MGI Research helps clients identify opportu-nities for reducing IT costs and minimizing technology risks. Since its founding, MGI Research emphasized application of highly quantitative and structured methods in creating decision-support frameworks for its clients. MGI has since created a number of proprietary industry metrics, benchmarks, and indices such as the MGI 10KScore, MGI Cloud30 Index, and the MGI 360 Ratings. For additional information or to schedule a confidential consultation, call +1 888 801-3644 or visit www.mgiresearch.com

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

4 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

Product

Mgmt Team

Channels

Strategy

Finances

ABOUTMGI360RATINGS

MGI 360 Ratings is a comprehensive structured system for evaluating technology companies. The MGI 360 scores reflect analyst opinions based on a scale of 0 to 100 combined with an analyst outlook (Positive, Negative, or Neutral) across five key pillar scores: PRODUCT: How strong is the product competitive position? MANAGEMENT: How competent and experienced is the management team? CHANNELS: Does the company have a sales capability and channels needed to bring products to market? STRATEGY: Does the company have a realistic view of the opportunity and a compelling strategy for success? FINANCE: Is the company growing and profitable? Each of the five equally weighted pillar scores ranges from 0 to 20 points. Each pillar score is subdi-vided into numerous sub-categories – in total, over 147 criteria are combined to generate a single MGI 360 rating. We frequently emphasize that the MGI 360 scale is very demanding and companies need to be exceptional in their market in every aspect of their business in order to command higher scores.

MGI 360 ratings are revised continuously as important developments occur.

Companies can have multiple scores – one for each market as well as a history of scores. MGI 360 rating system is comprehensive but is not meant to be a predictor of company solvency, liquidity, absence of accounting fraud, or stock performance. It is not under any circumstances a recommendation or an offering to buy any securities of any supplier reviewed, nor is it an endorsement. Rating research in-cludes but is not limited to interviews with company executives, customers, investors, partners, competitors, product demos, site visits, etc. All MGI 360 Rat-ings undergo highly critical internal peer reviews. More information is available in Appendix A.

Figure 1 - MGI 360 Rating Dimensions

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

5 Disclaimer: Information and opinion furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

TableofContentsSUMMARY ........................................................................................................................................................................................................................ 1WHY RATE TECHNOLOGY SUPPLIERS ...................................................................................................................................................................... 1KEY ISSUES FOR AGILE BILLING ................................................................................................................................................................................ 2ABOUT MGI 360 RATINGS ............................................................................................................................................................................................. 4INTRODUCTION ............................................................................................................................................................................................................... 6MGI 360 RATINGS SUMMARY ...................................................................................................................................................................................... 8

CURRENT MGI 360 RATINGS FOR AGILE BILLING .............................................................................................................................................. 8FOCUS ON PRODUCT – ENTERPRISE SEGMENT ................................................................................................................................................ 10FOCUS ON THE MANAGEMENT TEAM – ENTERPRISE SEGMENT ................................................................................................................. 12FOCUS ON CHANNEL – ENTERPRISE SEGMENT ................................................................................................................................................ 13FOCUS ON STRATEGY – ENTERPRISE SEGMENT .............................................................................................................................................. 14FOCUS ON FINANCE ................................................................................................................................................................................................. 15

MGI 360 RATINGS DETAIL: Gotransverse, Inc. ........................................................................................................................................................... 16

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

6 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

INTRODUCTION

Agile Billing is an economic bridge between an organization and its customers. While not every organization may communicate with its customers regularly, it is likely to send every customer a monthly bill. This interaction provides a supplier with an oppor-tunity to either elevate or denigrate its own brand. Customers make judgments about a supplier based on bill accuracy, transparen-cy, match to original service level agreement, level of detail, ease of navigation, and readability, among other factors.

MGI Research defines Agile Billing as solutions that are inherently agile in the way they are designed, implemented, and operat-ed. The user experience (UX) is modern and intuitive and enables a business user to manage price, catalog and offering elements, to schedule changes, and test pricing models – in most cases without any IT involvement. Most, but not all, Agile Billing solutions are cloud based and are applicable to a wide range of industries and use cases. While most Agile Billing solutions are cloud based, not every cloud-based billing system is agile.

Billing was once considered to be a back-office function but, in its modern agile billing form, emerged as a link between the cus-tomer-facing front-end sales systems and back-office fulfillment, payment, collections, and financial reporting and management functions on the one hand and key strategic objectives of a company such as entry into new markets, gains in market share, and improved compliance.

A requirement for a robust billing capability cuts across all company sizes, geographies, business models (B2B/b or B2C) and dis-tribution channels (direct, OEM, reseller, et al.). An outdated or inflexible billing system can become a serious liability for enter-prises of any size. Billing disputes, decline in customer satisfaction, revenue leakage, and an inability to roll out and test new business models are just some of the symptoms for which companies should seriously consider a modern Agile Billing solution. Agile Billing evolved into a credible all-weather product category with increasing acceptance and increased recognition by both business and IT-focused buyers of technology. The growing number of Agile Billing implementations serves to build confidence among buyers and service providers.

Within the billing software space overall, there are literally hundreds of companies providing billing solutions – both horizontal and specialized by industry and/or geography, e.g., for water utilities in a specific geography. Of these, MGI Research currently tracks about 30 suppliers and actively rates 15 to 20 companies that we consider the most visible, active, and impactful in the cur-rent market.

Business Models Reference: B2B – Business-to-Business B2b – Business-to-Small Business B2C – Business-to-Consumer

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

7 Disclaimer: Information and opinion furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

Table 1 - Agile Billing Suppliers by Primary Market Segment (companies rated in this report are listed in BOLD)

Small & Medium Business (SMB) Enterprise Hyper-Scale • Fusebill • Chargify • Recurly • JustOn GmbH • ChargeOver • Chargebee • Cheddar • Chikpea • Salesforce.com • FinancialForce.com • Intacct • Stripe • Early Impact, Inc. / SubscriptionBridge • PaySimple • FastSpring • 2Checkout • Payolee • Zoho,com

• Zuora • Gotransverse • BillingPlatform • Aria Systems • RecVue • BluLogix • OpenCell • Cerillion • LogNet (MaxBill) • LogiSense • Technotree • Rev.io • Optiva (fka RedKnee) • Digital River

• SAP • Oracle BRM • CSG Systems International • Amdocs • Ericsson AB • NetCracker • Matrixx Software

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

8 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

MGI360RATINGSSUMMARY

CURRENTMGI360RATINGSFORAGILEBILLING We currently track over 50 suppliers in the billing management space and publish MGI 360 ratings on the top 16 products (see Figure 2 below).

Figure 3 - Current MGI 360 Ratings for Billing Management Suppliers

The Agile Billing suppliers with the Top 5 MGI 360 Rat-ings (starting with the highest absolute rat-ing) are Zuora, SAP SE, Gotransverse, Oracle (BRM), and BillingPlatform. We rated five out of 16 suppliers with a Posi-tive Outlook – Zuora, SAP SE, Gotrans-verse, BillingPlat-form, and Fusebill. The rest have a Neu-tral Outlook. At pre-sent, no supplier has a Negative Outlook. The scores range from 43.80 for RecVue (a new en-

Figure 2 - Current MGI 360 Scores for Agile Billing

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

9 Disclaimer: Information and opinion furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

trant in the Enterprise market segment) to 63.45 for Zuora against a maximum score of 100. Scores for both SAP and Oracle reduced recently. Other companies that have seen their ratings cut include Ericsson AB (MetraTech), Aria Systems, and Oracle-NetSuite. At the same time, stronger performance from BillingPlatform, Gotransverse, and Zuora pushed their ratings higher. A basic breakdown of current MGI 360 Rating component scores is contained in Fig 3 below:

The ratings reflect the still-evolving nature of products, channels, man-agement teams, and strat-egies for many compa-nies in this space. As we noted earlier, near-ly 150 unique data ele-ments contribute to the overall MGI 360 Rating across five major catego-ries. To maintain the in-tegrity of the rating pro-cess, the details of the rating model inputs re-main confidential. At the same time, a general de-scription of each compo-nent category is useful in helping organizations make an informed suppli-

er selection.

Figure 3 - MGI 360 Component Scores for Agile Billing

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

10 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

FOCUSONPRODUCT–ENTERPRISESEGMENT The Product component score focuses on product functional and operational capabilities, maturity, competitiveness in its primary market and breadth and depth of its ecosystem. In a supplier-selection context, we separate product ratings by market segments – SMB, Enterprise, and Hyper-Scale. Scale is 0 to 20.

Organizations with anywhere from $50 million in invoice volume to $10 billion (subject to the complexity of billing requirements) are the typical target for Enterprise Agile Billing Products. In this area, products pro-vide increasingly sophisticated capa-bilities that, in many cases, overlap with and exceed capabilities of prod-ucts in the Hyper-Scale segment. Any company with medium-to-high complexity and low-to-high volume would be a candidate for an Enter-prise product. Product scores for the Enterprise Ag-ile Billing segment are in Fig. 4. Gotransverse, BillingPlatform and Zuora are the strongest products in the Enterprise segment. There is a meaningful gap in scores between the top three products and the rest of

the pack.

Figure 12 - MGI 360 Product Scores for Enterprise suppliers

Figure 4 - Product Scores for Enterprise

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

11 Disclaimer: Information and opinion furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

We expect the Zuora product to undergo a significant technological renovation in the next 12-18 months. In part, this process is already underway, starting with micro-services architecture. Aria Systems is coming out of a transition triggered in part by a challenging migration to a new product version. RecVue and OpenCell are relatively new entrants into Agile Billing, with products that are promising but still lacking in maturity and sufficiently broad field data on actual implementations. Products from the Hyper-Scale segment are often considered in the same context as the Enterprise products and, in many cases, lose the competitive evaluations. Enterprise products offer a rich set of capabilities for companies that do not need true real-time rating and billing and do not have billions of rating events per day.

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

12 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

FOCUSONTHEMANAGEMENTTEAM–ENTERPRISESEGMENT Management team quality and track record (both historical and current) play an important role in the overall MGI 360 Rating. We look for teams with relevant ex-perience that have a broad and deep bench of talent, that act cohesively, have a strong built-in incentive system, and demonstrate a recent track record of results. We view the balance between the rating of the management team and rating of the product as one of the more significant indicators of supplier performance.

In the Enterprise segment, Zuo-ra, Gotransverse, and Billing-Platform are most proactive in building out their management organizations at both the senior and middle management levels. Aria Systems underwent a dif-ficult transition period, but the management team deserves good marks for staying disci-plined in the face of adversity and focused on items most crit-ical to company survival. OpenCell and RecVue teams are evolving rapidly as these are the most recent entrants into the Agile Billing market. Aver-age management score in the Enterprise segment is 12.53 – highest among the three Agile Billing market segments.

Figure 5 - Management Scores for Enterprise

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

13 Disclaimer: Information and opinion furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

FOCUSONCHANNEL–ENTERPRISESEGMENT For most cloud-based suppliers of Agile Billing, the breadth, depth, and efficacy of their sales channels holds them back from becoming meaningfully larger. Our Channel scoring reflects key attributes of a company distribution channel including but not limited to breadth, depth, productivity, consistency, and focus. The score accounts for companies selling their products across a spectrum of direct, indirect, online, and OEM sales channels worldwide.

In the Enterprise market segment, sales efforts are generally organized around direct sales force as well as channel and marketing part-ners such as systems integra-tors (e.g., Deloitte, Cogni-zant, et al, and other soft-ware suppliers (e.g., Work-day partnership with Gotransverse). The average Channel score in the Enter-prise segment is 8.04. Most Agile Billing suppliers in this segment rely on direct sales force and are growth-constrained by its size and reach.

Figure 20 - Channel Scores for Enterprise

Figure 6 - Channel Scores for Enterprise

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

14 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

FOCUSONSTRATEGY–ENTERPRISESEGMENT We measure strategy as both the effort of the company to generate interest in its brand and product as well as the efficacy of these campaigns in terms of market

reach, message impact, consistency, differentiation, and brand value. Does the messaging behind the product accurately reflect product strengths and capabilities? In the Enterprise segment, Zuora leads with the top score in Strategy, followed by Gotransverse. The av-erage Strategy score in the Enter-prise segment is 11.58.

Figure 7 – Strategy Scores for Enterprise Segment

Figure 24- Strategy Scores for Enterprise

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

15 Disclaimer: Information and opinion furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

FOCUSONFINANCE The Finance dimension of MGI 360 Rating measures key financial and operating aspects of a supplier. This includes traditional measure of revenue and profitabil-ity critical mass, growth and quality and (when applicable) measures of customer and revenue retention and churn. The leading companies in this market are grow-ing in excess of 60-120 percent per year. The middle of the market is generating growth in the 20-40 percent range. A number of companies are stagnating or even modestly losing revenue.

In the Enterprise market segment BillingPlatform leads with the top score of 12.07 reflecting hyper growth, high quality balance sheet, and high levels of revenue and customer retention. The company received a commitment of $18 million from Columbia Capital, drew its first tranche of $4 million, and barely spent any of that money while growing over 100 percent in 2018. Gotransverse follows with a score of 11.73. Zuora’s score of 9.20 reflects continued invest-ment into key areas of the company, translating into operating loss. The aver-age Finance score in the Enterprise mar-ket segment is 9.47. Figure 8 - Finance Scores for Enterprise

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

16 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

MGI360RATINGSDETAIL:Gotransverse,Inc.

Company Gotransverse We upgrade the MGI 360 Rating of Gotransverse in the Billing Management market from 60 to 61 and reiterate a Positive outlook

Market Billing Management

MGI 360 Rating 61 (out of 100)

Outlook Positive

Date 9/25/2018

RatingDetail ActualPeer

Average

Product 69% 56%

Management 71% 60%

Channels 42% 50%

Strategy 64% 55%

Finance 59% 51%

TotalRating 61% 54%

goTransverse,13.80

goTransverse,14.21

goTransverse,8.42

goTransverse,12.86

goTransverse,11.73

PeerAverage,11.11

PeerAverage,12.01

PeerAverage,9.98

PeerAverage,11.00

PeerAverage,10.27

- 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00

Product

Management

Channels

Strategy

Finance

MGI360RatingsCompanyvs.PeerGroupAverage

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

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Company Gotransverse We upgrade the MGI 360 Rating of Gotransverse in the Billing Management market from 60 to 61 and reiterate a Positive outlook

Market Billing Management Analysis: The most current MGI 360 Rating for Gotransverse is 61.01. The product score increased from 13.38 to 13.80, reflecting improved feedback from references. Management score increased from 14.12 to 14.21, mirroring better execution. Channel score is up slightly from 8.28 to 8.42 with longer sales tenure translating into higher sales productivity. The company had some rotation in its senior ranks and added experienced new resources in product management and sales. Strategy rating improved from 12.52 to 12.86. Gotransverse is benefiting from better overall market recognition and a more visible brand. The company is also benefiting from good relationships with major cloud suppliers such as Workday and Salesforce and expanding alliances with SIs such as Cognizant, Accenture, et. al. The Finance score remains unchanged at 11.73. The company win ratio remains high as it competes effectively versus its immediate peers and against larger players such as Oracle and SAP. The key challenge for the firm re-mains in broadening its channel and scaling up marketing.

MGI 360 Rating 61 (out of 100)

Outlook Positive

Date 9/25/2018

Target Complex recurring reve-

nue scenarios, A/R Automation

Best Use Case: Companies seeking sophisticated recurring revenue monetization capabilities across a mix of phys-ical and digital goods and variety of pricing modalities.

Customers Instacart, Engie, HPE,

Snowflake, Cloudflare

Company Description: Gotransverse is a cloud-based billing solution aimed at organizations with a wide array of billing scenarios, from B2C subscriptions to complex B2B usage scenarios involving a mix of digital and physical goods. The TRACT product can be configured as either a rating engine or a full A/R sub ledger. Senior manage-ment hails from the traditional on-premises, high-volume, complex telecom billing companies and brings domain expertise in billing, revenue recognition, and enterprise-scale processes and systems. The company has 41 custom-ers, eight of which are still in implementation. Gotransverse employs a staff of 134.

Revenue $16 Million

Rev Growth 50.00%

Profitability No Competitors: Aria Systems, BillingPlatform, BluLogix, Ericsson, Logisense, Netsuite, Oracle, Salesforce, SAP, Zuora

Founded 2008 Funding/Ownership: Gotransverse raised approximately $90 million in funding. The company is privately held with the control stake held by a Bremen, Germany-based private equity firm H. Siedentopf.

HQ Austin, TX Key Management: James Messer (founder and CEO), Michael Beamer (President), Paul Tindall (CTO).

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

18 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

Gotransverse Rating History

Figure 9 - Gotransverse Rating History

Page 19: MGI 360TM RATINGS · Agile Billing Solutions – A Buyer’s Guide (Licensed ... (Positive, Neutral or Negative). Vendors whose ratings are presented in this MRR include Amdocs (Optima),

MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

19 Disclaimer: Information and opinion furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644

Gotransverse Outlook Gotransverse has a strong position in mid-size and larger companies looking to automate complex billing scenarios and whose business models change frequently. The company offers a good combination of a strong product backed by a technology and management team with deep roots in billing technology. Customer feed-back remains consistently positive. The company demonstrates a strong ability to deploy complex billing configurations with flexibility, speed, and at competitive economics. Gotransverse carved out a niche in addressing complex billing requirements of companies with hybrid (physical+digital) business models and complex contractual arrangements aimed at B2B and B2C customers. Often, the winning customer context for Gotransverse involves tracking and physical and digital as-sets. Another strong use case for Gotransverse is within rapidly growing companies whose financial infrastructure is still evolving and which could take full ad-vantage of Gotransverse’s integrated monetization management approach. Gotransverse remains one of the top three options for Agile Billing for the Enterprise segment.

Strengths

• Success in tackling complex hybrid business models • Strong product capability • Tenured management team with a long track record of successfully working together • Focus on getting customers to go live in a short period of time • Ease of use of doing business with the company – this feedback comes up consistently in field research.

Challenges

• Gotransverse is constrained by the size and reach of its distribution channel • Partnerships with companies such as Workday and Salesforce as well as with a few private equity firms that own a large portfolio of tech companies, bore

fruit but not yet enough to scale the business up in a way that can support hyper-growth • The company management team had some turnover – small in comparison to other firms – but the company may needto bring in both fresh capital and

new management team participants to take the business to the next level of scalability

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MGI 360TM Ratings Market Ratings Report: Agile Billing Solutions – A Buyer’s Guide (Licensed Extract) Jan 9, 2019

20 Disclaimer: Information and opinions furnished on an as-is basis. No warranty, written or implied, as to the accuracy of the data. Not responsible for typographical or reproduction errors. Not an offering to buy or sell

securities of any kind. Does not represent investment advice in any form. © 2019 MGI RESEARCH, LLC www.mgiresearch.com +1 888 801 3644


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