Content business growth
Virtual workspace operator Citrix Systems (CTXS) has gained from growing demand for both its hybrid and public cloud systems. In 4Q17, the company reported strong growth in its Content Collaboration business.
In 4Q17, Citrix’s Content Collaboration business grew nearly 23.0% YoY (year-over-year) to $45.6 million, posting its highest growth compared to the company’s other product categories..
In the graph above, we can see the revenue growth of the Content Collaboration segment during the last five quarters. During this period, it grew at a CAGR[1. compound annual growth rate] of 5.2%. It also witnessed the highest CAGR growth among Citrix’s other product groups.
What’s driving CTXS’s Content business?
The bulk of Citrix’s overall SaaS business is composed of its Content Collaboration products. Growing demand for ShareFile services in the enterprise space, coupled with the higher adoption of cloud computing within the industry, acts as a strong catalyst for the company.
US-based healthcare service provider Health First selected Citrix Cloud over its competitor’s VDI solution due to Citrix’s strong connection with Microsoft (MSFT). Citrix delivers reduced cloud consumption storage costs by combining Azure and Intune in the platform environment and Office 365 at the app level.
Citrix inked about 107 deals in 4Q17 with a ticket size of more than $1.0 million, an increase from 96 transactions converted in 4Q16. These strong pipelines, as well as the higher transition of data centers from on-premise to cloud technology, could drive Citrix’s Content Collaboration business going forward.