COMMODITY TECHNOLOGY ADVISORY LLC
ANALYST BRIEFING NOTE
EKA
Analyst Note Update
February 2017 Update
Eka recently announced their 2016 year end results , providing the opportunity to review the company ’ s progress in developing and marketing its Commodity Analytics Cloud , a new product announced in 2015 . Additionally we will also review the company ’ s overall performance since our last full update , released in November of 2014 .
For a more complete coverage of Eka , see our analyst briefing note released in July 2015 for detailed review of the company ’ s Commodity Analytics Cloud . Also see our ComTech Analyst Briefing Note released in November 2014 , for a complete corporate overview , strategy discussion and products overview by ComTech analysts .
2016 Announced Results
In a recent Eka press release ( dated January 30 , 2017 ), the company announced a 35 percent increase in sales and an increase of 80 percent in EBITDA in 2016 .
Additional highlights of the year ’ s results noted in the announcement include :
� Eka grew new name agricultural customers by 23 percent . � Four out of the five of the top global agriculture companies have licensed some portion of Eka ’ s platform . � Eka ’ s energy business added 25 percent new name customers . � Analytics Cloud customers grew by over 400 percent . �
The company opened three new offices in the US , Europe and Canada , and staff numbers increased by 19 % overall . It has plans to open another office in the US in Q1 2017 � It added a number of key executive management positions during 2016 � Eka reported numerous go-lives and upgrades in 2016 including Agrex , REG , Boliden , ENMAX , Just Energy and Rio Tinto .
It should be noted when reviewing these results that the 2015 baseline comparison was not available ; nonetheless , the improvement in financial and sales activity versus 2015 do indicate solid market momentum for the business at the end of 2016 .
ComTech Review
Though Eka markets a number of software products and service offerings supporting business activities across many different commodities and market categories , given the company ’ s recent announcements and activity , we will focus on the following topics :
Commodity Analytics Cloud As described in ComTech ’ s Analyst note of July , 2015 , Eka have introduced its Commodity Analytics Cloud , an application “ to accelerate information flow and analysis for commodity trading and commodity management companies . The solution crosses several technology and software categories , including integration solutions , BI tools , analytics , Big Data solutions , data cubes , and cloud offerings ; and as such , it ’ s a product that is difficult to slot into any single existing solution category . It uses preconfigured and / or user definable apps to provide rapid analysis and insights into the critical issues facing business users , including physical / financial positions , P & L , risk exposures , supply chain performance , forecasting , and more . Utilizing some of the tools of a Big Data solution , including the use of NoSQL , the product aggregates data from any number of sources , including CRM solutions , spreadsheets , E / CTRM applications ( Eka ’ s and / or others ), bespoke solutions , data feeds , and ERP / accounting systems .”
Since its initial release , market adoption ( despite decreased spending for IT in the commodities space in 2015 & 2016 ) has been fairly robust , and the company has continued to invest in new capabilities . It has released seven additional Commodity Analytics Cloud apps in 2016 , providing analytics coverage that includes position consolidation , risk , supply chain , P & L evaluation and attribution , procurement , margin analysis , and plan performance .
© Commodity Technology Advisory llc February 2017 1