Breakaway Solutions: B2B for the Rest of Us
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The new acronym is FSP, which stands for "full service provider." As the name implies, an FSP is a one-stop consulting firm -- providing services that range from e-business development to application hosting. In fact, services may even include the outsourcing of a company's chief technology officer or chief information officer.
Breakaway went public last October raising approximately $42 million. The company's share price tripled on its first day of trading. Since then the stock has been strong. And expect the strength to continue.
The company's financials have been tremendous. In its latest quarter, total revenues were $10.6 million, an increase of 324 percent from the $2.5 million reported in the prior year's fourth quarter.
Loyal customer satisfaction and retention parallels this awesome customer growth rate. A promising 90 percent of its fourth quarter customers who have engaged Breakaway Solutions to build their e-business applications are also hosting or planning to host their sites through Breakaway Solutions.
Interestingly enough, it was the savvy B2B incubator, Internet Capital Group, that invested in Breakaway. This relationship has provided access to many customers. For example, Breakaway has developed a variety of sites for VerticalNet.
Key to the success of Breakaway has been speed. For example, it took a mere eight weeks for Breakaway to launch the RealtyIQ.com site. This was essential for the company to get additional venture capital funding.
Breakaway is also highly creative. The company recently announced Breakaway Capital LCC, which will make investments primarily in customers' businesses.
According to Forrester Research, the midsize business market will account for 53 percent of e-business spending in 2000, which is up from 15 percent in 1998. It's definitely very good news for Breakaway, which is dominant in this rapidly growing market segment.
------------ Backed by Internet Capital Group with Q4 revenue growth of 324 percent, Breakaway Solutions looks attractive. Will the stock soon "break away" to higher levels? Discuss it here