Magento racked up record-breaking sales results in the 2nd Quarter of 2011 and made substantial progress on enhancing our product line, support and training. The quarter’s biggest news was the announcement that eBay has agreed to acquire Magento and make it a core component of the new X.commerce ecosystem.
Below are highlights of a quarter that marked the beginning of a new era for Magento and eCommerce.
Rapid growth in customer subscriptions for the Magento Enterprise Edition helped drive 2nd quarter revenue growth of 140% vs. 2nd quarter 2010. In addition, the recently-created Customer Success Group and expanded Support Team were instrumental in driving record-high renewal rates for the Enterprise Edition. In this quarter we also experienced a remarkable renewal rate of 92% from Magento Enterprise Edition subscribers who have chosen to stay with Magento year over year as their businesses have evolved.
This also marked the first full quarter of Magento Go revenues, which made a significant contribution to the company’s overall revenue growth.
On the morning of June 6th, we announced that Magento had reached an agreement to be acquired by eBay Inc. The pending acquisition – scheduled to close in the 3rd quarter – will enable Magento to accelerate our growth and extend our reach as part of eBay Inc.’s X.commerce platform. In the weeks since the announcement, customers, partners, developers and merchants have gained a better understanding of how the pending acquisition will help strengthen Magento and provide even greater opportunities for our ecosystem.
In May, we introduced Magento Answers, the latest addition to our web site’s portfolio of collaboration tools. Magento Answers is a simple yet powerful tool for exchanging ideas with other merchants, developers and eCommerce pros through an intuitive question and answer format. Not surprisingly, the Magento community has jumped right in, making this a “go to” resources for finding expert advice. We’ve gotten great feedback from the community and have already made improvements to Magento Answers based on user suggestions.
Choosing the right Solution Partner is key to the successful deployment of most large, robust Magento projects. That’s why we continue to build our global network of Solution Partners. We added 39 new Solution Partners in Q2, bringing the total to 271. Significantly, 27 of these are Gold or Silver level partners, capable of delivering larger, robust projects for customers. In fact, we’ve more than doubled the total number of Gold and Silver Solution Partners in the past year.
Magento Go continued to build marketplace momentum and attract merchants in its first full quarter of operation. The development team continued to enhance Magento Go with new features and updates, including support for multiple payment gateways in North America, Europe and Asia, and the ability to add on themes and pre-integrated technologies from our partners. You can find great examples of Go-powered sites at TrendyBelly (maternity clothing), Jules Seltzer (classic and contemporary furniture) and Dog Geeks (eco-conscious dog products).
Meanwhile, work continues at full speed on the Magento Go Platform, currently in closed Beta – watch for exciting announcements in the 3rd quarter.
Our development team moved forward on multiple fronts, preparing for 3rd quarter releases and plotting the longer-term future of the Magento platform. A few highlights:
Dozens of merchants, developers and designers took advantage of world-class training opportunities offered by Magento U, which just completed its first full quarter of classes. In the 2nd quarter, classes were held in Chicago, Berlin, London Los Angeles and Paris, with an even busier schedule of global course offerings planned for the 3rd and 4th quarters.
Feedback on the quality of Magento U instructors was particularly strong, with one student commenting, “Their through-and-through understanding of Magento and the inner workings of the application is truly amazing and something you just can't get anywhere else.”
Perhaps the most dramatic growth of all during the 2nd quarter occurred in the area of Magento Support. Demand – measured by the number of support tickets – grew by 300% vs. the same period one year ago, thanks to the rapid expansion of our Enterprise Edition customer base. Fortunately, the Support Team’s size grew by even more than 300% over that period. Performance improved as well: the team achieved a 40% reduction in average time to resolution, and a 90% increase in first call resolution for Enterprise Edition customers.
The 3rd quarter shows every indication of being another breakthrough period for Magento. Projected highlights include:
As always, stay tuned to the Magento Blog for updates.