AVG continued to tout the success of its SMB segment during its Q4 2013 earnings call, pointing to the acquisition of Level Platforms in June 2013 as a contributing factor to year-over-year revenue growth.
AVG Technologies CEO Gary Kovacs says the company was "successful in selling CloudCare and AVG Managed Workplace solutions" into its MSP channel in Q4.
AVG Technologies (AVG), owner of the Managed Workplace MSP platform, continued to tout the success of its small and medium-sized business (SMB) segment during its Q4 2013 earnings call yesterday, pointing to the acquisition of Level Platforms in June 2013 as a contributing factor to year-over-year revenue growth.
The company said its Q4 2013 revenue hit $101.9 million, up 7 percent from $95.2 million in Q4 2012. Additionally, net income was $12.8 million, up sharply from $4.9 million in Q4 2012.
During an earnings call with analysts as transcribed here on Seeking Alpha, AVG CEO Gary Kovacs suggested that the Level Platforms acquisition, which focused the company on the SMB market, is performing well.
"In the small and medium business segment in the fourth quarter, we completed the integration of Level Platforms and are focused on execution and integration of our channel partner relationships," he said.
Kovacs added that AVG was "successful in selling CloudCare and AVG Managed Workplace solutions" into its MSP channel throughout the quarter, adding that this contributed to year-over-year revenue growth.
He said AVG laid the foundation for the transition of its business to a cloud-based security model in 2013 in the SMB segment.
"We started with the internally developed product CloudCare and because we firmly believe in the SMB opportunity. We added Managed Workplace later in the year," he said.
He added: "This gave us access to a larger and much more sophisticated customer base, and as we exit 2013 we have $13 million in annualized monthly recurring revenue from our cloud business alone, and we believe that we will steadily grow this business in 2014 and beyond."
During last quarter's earnings call, which we reported on here, some analysts expressed concern over the rate of revenue growth from AVG's search relationships. But AVG continues to point to the success of its SMB and MSP-oriented Managed Workplace business.
The industry witnessed several major acquisitions of MSP software providers in 2013, including AVG buying Level Platforms; Insight Venture Partners buying Kaseya; and SolarWinds buying N-able Technologies.
Each of these companies have claimed to be performing well since the deals were announced.
Follow CJ Arlotta on Twitter @cjarlotta for further updates on the story above.