In the current digital era, clients have different expectations from a local POS aka Point of Sale. The software is expected to handle the connection of payment, smart interactions, elaborate data analysis, and customer communication.
Like many other industries, restaurants also use POS to manage their business successfully. A new fiscalisation law called Kassensicherungsverordnung, which is a cash register security regulation is all set to go into effect in Germany from January 1, 2020. As a result of this law, only the POS systems certified by the Federal Office for Information Security can be used by restaurants and retailers.
Founded in 2011 by Jakob Schreyer, Bastian Schmidtke, Artur Hasselbach and Patrick Brienen-Lucius, orderbird is a POS solution for restaurants based in Berlin. This tech startup focuses on making independent restaurants more successful.
While it offers POS solutions, the payments-related business of orderbird is playing a larger role. It operates with the objective to enable customers to accept any type of payment. Recently, the company announced its unaudited financial results for the first half of this year. Here are the key takeaways of the announcement.
Achieves 13% growth in revenue!
Over the first six months of this year, orderbird has witnessed a growth of 13% in the total revenue. It is trailing the high growth rate of software and payments revenue. After having achieved this growth rate, the team has started focusing on the business besides low-margin and commoditised hardware. Eventually, the company is selling relatively lesser units of hardware in 2019 as compared to the previous year. Notably, in the second quarter, the German company almost reached a breakeven with a burn of just 1.7% of revenue.
orderbird CEO, Mark Schoen explained, “Balancing cash burn and growth is always an important consideration. We have decided to conserve cash this year so that we can deploy significantly more resources next year when buying activity is dramatically higher and customer acquisition costs are lower.”
Increase in Annual Recurring Revenue
ARR (Annual Recurring Revenue) consists of SaaS licenses, recurring fees, and card-processing commissions from partners for data and API access. During the first half of 2019, orderbird achieved an ARR of €3.9 million, which is 32% higher than that achieved in the first half of 2018. With this ARR, the annualised run rate is greater than €8.4 million.
Schoen stated, “Our key financial metric is Annual Recurring Revenue. Our software-as-a-service business model keeps us focused on growth and sustainability as we know our long-term ability to provide innovative products and excellent service to our customers are key differentiators in this market.”
No. 1 iPad POS solution!
It is an award-winning iPad POS system for restaurants. orderbird’s POS solution serves over 10,000 clients including cafes, restaurants, bars, clubs, beer gardens, and ice cream shops across Europe with over €3 billion gross transaction volume. To get to this position, the Berlin-based POS startup raised over €33 million. Of these, €20 million was raised in 2016 and the other €10 million in 2014.
Talking about future plans, Schoen added, “We believe that demand for new point-of-sale systems will be four or five times this year’s level. Because of our brand, market-leading services, and our ease of on-boarding, I am confident that we’ll sign on double the number of new customers in Germany as our closest competitor next year.”
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