WebCT Announces Record 2001 Financial Results
Lynnfield, MA, March 15, 2002 — WebCT, the world’s leading provider of integrated
e-learning systems for higher education, has announced record financial results
for the year ending December 31, 2001. The highlight for the privately held
WebCT was a substantial increase in total revenue: 2001 total revenue increased
292 percent year-over-year.
The Company also announced triple-digit year-over-year increases in every significant
revenue category, including license revenue, which rose 334%; publisher content
revenue, up 869%; and sales and support revenue, which increased 158%. WebCT’s
record 2001 financial results underscore its continued dominance of the higher
education e-learning category.
Two decisive factors contributed to WebCT’s explosive revenue growth in
2001. First, the company continued to add new higher education customers at
a record pace, winning an extraordinary 72 percent of all competitive new business
evaluations in the past year. As a result the Company grew its customer base
by more than 40%, adding more than 750 new institutions to its global customer
network. WebCT, which already had the world’s largest installed customer
base in higher education, now has a course management system network of more
than 2500 institutions in 81 countries around the world.
Leading institutions around the world that have chosen WebCT over the past
year after carefully evaluating two or more course management systems
include: Auburn University; Boulton Institute of Higher Education; Dublin Institute
of Technology Emerson College;e-Cornell; Indiana State University; Monash University;
St Andrews University; San Jose State University; South Dakota Board of Regents;
Tennessee Board of Regents; University of Southern Queensland; University of
Sunderland; and University of Western Sydney.
Internationally, WebCT’s 2001 customer acquisition was particularly strong:
the company signed on over 500 new international customers in 2001 alone. This
growth was fueled by the company’s continued expansion of the localization
program of its platforms in 10 major world languages, and the increase of its
global re-seller network. Notable international institutions that signed new
license agreements with WebCT in 2001 include: City University of Hong Kong,
Ritsumeikan University (Japan) and the India Institute of Technology in Asia;
Heidelberg University (Germany), Neptuno (Italy), Universidad Politecnica de
Madrid (Spain) and Centre National de l’ Education a Distance Francaise (French)
in Europe; Universidad Nacional de Colombia – Bogota, Universidade de Sao Paulo
and Universidad Central De Chile in Latin America; and Rand University in South
Africa.
“WebCT has the strongest international presence among e-learning firms
and distinguishes itself as the most focused provider of e-learning technology
solutions,” notes education industry analyst Adam Newman of Eduventures.*
Newman also notes that “WebCT demonstrated strong revenue growth during
2001.”
Eduventures estimates the 2001 higher education e-learning industry at $310
million, and projects it to grow to 1.0 billion in 2005. Eduventures also states
that “e-learning – the tech and related academic services directly involved
in the process of teaching and learning — is the fastest growing component
of the digital campus.”
At the same time that WebCT grew its customer base in 2001, the company also
successfully expanded existing customer relationships, thanks in large part
to the successful rollout of WebCT Campus Edition. In the first nine months
of its availability, WebCT has over 180 campuses that have purchased its Campus
Edition software product. The majority of these sales came from existing customer
upgrades, reflecting the strong commitment WebCT’s customers have made
to supporting their institutional goals of improving academic performance and
access through their campus’ course management system.
“Our significant revenue and customer growth in 2001 demonstrates the
power of WebCT’s business model, which is focused exclusively on e-learning,”
said Carol A.Vallone, president and chief executive officer of WebCT. “Building
on the momentum of last year, we are excited to continue to lead the higher
education e-learning industry, as we prepare to deliver a truly breakthrough
product that will enable institutions to achieve their goals, and take e-learning
to a whole new level.”
“We’re growing our revenue base more quickly than our closest competitors,
and we’re doing so very efficiently, by staying focused on e-learning,
and closely managing our operations and expenditures,” commented John Giordano,
WebCT’s chief financial officer. “We expect a strong 2002, thanks
to a continued strong volume of customer upgrades to our Campus Edition product,
plus the incredible response we’ve already gotten to our next generation
product.”
About WebCT
WebCT is the world’s leading provider of integrated e-learning systems for
higher education. More than 2,500 colleges and universities in over 80 countries
worldwide are using WebCT’s products and services to transform the educational
experience of their students. Consortia in 23 American states, four Canadian
provinces, the Association of Jesuit Colleges and Universities, the French National
Center for Distance Learning and the Japanese National Institute of Multimedia
Education (NIME) have licensed WebCT for their member institutions, making it
the de facto standard in higher education. More information about WebCT can
be found at www.webct.com.
For more information, contact:
Karen Gage
781-309-1147
Sandy Baird
WebCT Wheeler Baird Group
203-637-8614
