Demandware Increases Revenue By More Than 50% In Q3

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Financial growth, customer rollouts and new insights regarding its acquisition of CQuotient all came to the forefront during Demandware’s quarterly results call. 

In Q3 2014, subscription revenue reached $34.3 million, and total revenue increased to $38.2 million, a year-over-year increase of 52% and 56%, respectively.

Retailer implementations also surged, with up to 250 clients going live on Demandware  — a 32% increase over the same period in 2013. Now, more than 1,000 sites are live with the technology, according to the company.


Several notable retailers joined the Demandware client roster during the quarter, including Cambridge Satchel Company, John Hardy, Kenneth Cole and Norbreeze Group. Existing clients, such as Carter’s, Lacoste and L’Oreal, expanded their use of the platform by either launching new sites in different geographies or expanding the technology to different brands.

In October 2014, Demandware announced its acquisition of CQuotient, a personalization solution provider. Although financial terms of the deal were not disclosed, Demandware revealed plans to expand the depth and breadth of its solutions using CQuotient technology.

With the CQuotient acquisition, Demandware will focus on converting the valuable data collected across its community of brands into actionable insights that empower retailers to improve the omnichannel shopping experience. CQuotient applies advanced predictive science to customer and product data, promotions and content across channels.

“Fundamentally, retail success is about building customer value, and that requires understanding and anticipating the needs, wants and motivations of the customer,” said Elana Anderson, SVP of Worldwide Marketing at Demandware. “Predictive intelligence is a crucial vehicle toward this success; it’s all about understanding the customer from a historical perspective and the contextual perspective of the moment, then finding the best product, offer or message to share with that customer in the moment of interaction.”

CQuotient will help support the Demandware vision to add even more value to the Commerce Cloud platform, helping retailers “deepen customer engagement and differentiate the customer experience across every channel and device,” Anderson explained in an interview with Retail TouchPoints. “With this acquisition, we’ll accelerate our efforts to leverage the extensive data captured by the Demandware Commerce Cloud to deliver dynamic shopping experiences, and enhance our Big Data and retail insights initiatives to provide retailers with a competitive advantage.”

Rama Ramakrishnan, Founder and CEO of CQuotient, will act as Chief Data Scientist at Demandware and will lead the company’s data-driven research and development. Graeme Grant, President and COO of CQuotient, will help Demandware define and execute go-to-market strategies related to these initiatives.


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