The British digital signage software developer Screencloud was acquired by private equity investor Tenzing in April this year. invidis spoke with co-founder and CEO Mark McDermott about building a global company that generates 70 % of its revenue in the USA.
Screencloud is firmly established in the digital signage market, not only as a close Google partner but also as a software specialist for large enterprise projects. The ISV generates $30 million in ARR revenue with 110,000 SaaS licenses – and more than two-thirds of that come out of the USA. With 25 % annual growth, Screencloud is performing far better than the market.
The British company is globally positioned, and not just on the customer side: With 125 employees worldwide – from its headquarters in London to its own development teams in Bangkok and Belfast to sales offices in Charlotte and Los Angeles – Screencloud is one of the few truly international software providers.
The strong focus on enterprise customers has paid off in recent years – whether employee-facing screens in offices, screens in manufacturing, or digital signage in education and hospitality. Screencloud’s growth is particularly eminent in areas where screens serve as the primary employee communication channel.
“We have been able to grow particularly well in the US, where businesses usually operate more locations than in Europe. While in Europe individual national subsidiaries decide independently of each other to use digital signage in employee communication, US roll-outs are a central decision,” says CEO Mark McDermott.
“North America also has a different communication culture: US and Canadian companies have a general desire to share and celebrate employees publicly,” McDermott explains. Across the old continent, employee communication tends to me more private: “In Europe, GDPR regulations and culture limit the communication of private information in public spaces.”
“We wanted to remain independent”
Mark McDermott is fully committed to the acquisition by Tenzing (invidis report). “We wanted to remain independent as a company and not be merged with a competitor,” he says. Screencloud has fought for its leading position in the market and is gaining new major customers. “We have the right to win.”
The new owner structure puts Screencloud in the driver’s seat of market consolidation. “We are looking for bolt-on acquisitions that complement our existing digital signage offering.” The search is on for businesses that will enable Screencloud to grow revenue and EBITDA. Not so much another Screencloud look-alike. The goal is clearly set: to double revenue and profit in 4-5 years.
