In today’s uncertain economy, cash is tough to come by.
Particularly for startup ventures. But with a little help from
Ariba, Inc. (Nasdaq: ARBA), the world’s business commerce network,
many smaller enterprises are getting access to the capital they
need to support their operations and drive growth through the
Ariba® Network.
“The cost of capital today is high for startups. Even with
strong revenue growth, when you haven’t been in business for a long
period of time, you often won’t have a balance sheet or P&L
that can be levered to get competitive rates from traditional
financing sources,” said John Evarts, Chief Operating Officer and
Chief Financial Officer of Mediafly, a Chicago-based company that
delivers a cloud-based platform and applications for content
management and distribution on mobile devices to Fortune 500
companies.
Mediafly has found a solution to this problem in the Ariba
Network, the world’s leading and largest global supply network
which is used by companies around the world to transact more than
$300 billion in commerce on an annual basis.
“One of our clients – a major entertainment company - came to us
and said that we needed to transact business on the network,”
Evarts recalls. The company began sending all its invoices to this
customer electronically. And it proved to be a game-changing
move.
“We did a test run with a purchase order and were able to go
from quote to settlement in 14 days,” Evarts said. Generally, this
cycle takes Mediafly anywhere between 30 and 90 days to
complete.
“With most of our clients it’s a black box as to when we are
going to see payments,” says Mediafly CEO Carson Conant. “With
Ariba it’s very predictable because we send it through the network
and we know where we stand and can make decisions based on
that.”
And by taking advantage of a dynamic discounting program that
this customer offers via the Ariba Network, the company can tap
into the cash it needs to fund its daily business needs and drive
growth.
Fueled by Ariba Invoice Management and Ariba Discount
Professional™, the program allows buyers and sellers to fully
automate the process of offering, negotiating, and agreeing on
early payment terms. Buyers can accelerate payments for approved
invoices to key suppliers in return for discounts, earning an
immediate return on their cash. And sellers can gain increased
visibility into future cash flows, certainty in payment timing and
the ability to use cash sooner.
“As interest rates continue to hover near historic lows, the
supply chain is increasingly becoming a more viable investment
opportunity,” said Drew Hofler, Senior Manager, Working Capital
Management Solutions, Ariba. “Using solutions like Ariba Discount
Professional, buyers with cash can achieve a greater return that is
effectively risk-free because they are investing in their own
suppliers. And suppliers can access a better and faster source of
cash for their receivables.”
For Mediafly, dynamic discounting has been a boon.
“For a few basis points, we can get quicker access to the
capital we need to hire developers and get to the next set of
features in our products, which accelerates revenue and ultimately
generates cash,” Evarts said.
Conant agrees. "It's a very fair number given the advanced
payment we can take," he says. "If we could use Ariba's dynamic
discounting solution for all of Mediafly's big accounts, we'd be
able to drive even faster feature expansion for our enterprise
customers."
To learn more about the Ariba Network and the value it can
deliver for your organization, visit: www.ariba.com. For additional
information on Ariba’s Invoice Management and Dynamic Discounting
solutions and the results they can deliver, visit:
http://www.ariba.com/solutions/manage-cash.cfm
About Mediafly, Inc.
Mediafly, Inc. creates business media management and delivery
solutions that drive revenue and save money for Fortune 500
companies. Mediafly joins its cloud-based, software-as-a-service
content management platform with elegant native applications on
mobile devices (iPad, iPhone, Android smartphones and tablets,
Amazon's Kindle Fire), connected TV devices (Roku, Boxee), and PCs.
Industry leading customers use Mediafly to aggregate, organize and
securely deliver high quality live corporate communications,
offline and on-demand sales training, confidential marketing media
review and secure document distribution in an award-winning user
experience. For more information, visit: www.mediafly.com.
About Ariba, Inc.
Ariba, Inc. is the world’s business commerce network. Ariba
combines industry-leading cloud-based applications with the world's
largest web-based trading community to help companies discover and
collaborate with a global network of partners. Using the Ariba®
Network, businesses of all sizes can connect to their trading
partners anywhere, at any time from any application or device to
buy, sell and manage their cash more efficiently and effectively
than ever before. Companies around the world use the Ariba Network
to simplify inter-enterprise commerce and enhance the results that
they deliver. Join them at: www.ariba.com
Copyright © 1996 – 2012 Ariba, Inc.
Ariba, the Ariba logo, AribaLIVE, Ariba.com, Ariba.com Network,
Ariba Spend Management. Find it. Get it. Keep it. and PO-Flip are
registered trademarks of Ariba, Inc. Ariba Procure-to-Pay, Ariba
Buyer, Ariba eForms, Ariba PunchOut, Ariba Services Procurement,
Ariba Travel and Expense, Ariba Procure-to-Order, Ariba Procurement
Content, Ariba Sourcing, Ariba Savings and Pipeline Tracking, Ariba
Category Management, Ariba Category Playbooks, Ariba StartSourcing,
Ariba Spend Visibility, Ariba Analysis, Ariba Data Enrichment,
Ariba Contract Management, Ariba Contract Compliance, Ariba
Electronic Signatures, Ariba StartContracts, Ariba Invoice
Management, Ariba Payment Management, Ariba Working Capital
Management, Ariba Settlement, Ariba Supplier Information and
Performance Management, Ariba Supplier Information Management,
Ariba Discovery, Ariba Invoice Automation, Ariba PO Automation,
Ariba Express Content, Ariba Ready, and Ariba LIVE are trademarks
or service marks of Ariba, Inc. All other brand or product names
may be trademarks or registered trademarks of their respective
companies or organizations in the United States and/or other
countries.
Ariba Safe Harbor
Safe Harbor Statement under the Private Securities Litigation
Reform Act 1995: Information and announcements in this release
involve Ariba's expectations, beliefs, hopes, plans, intentions or
strategies regarding the future and are forward-looking statements
that involve risks and uncertainties. All forward-looking
statements included in this release are based upon information
available to Ariba as of the date of the release, and we assume no
obligation to update any such forward-looking statements. These
statements are not guarantees of future performance and actual
results could differ materially from our current expectations.
Factors that could cause or contribute to Ariba's operating and
financial results to differ materially from current expectations
include, but are not limited to: the impact of the credit crises on
Ariba’s results of operations and financial condition; delays in
development or shipment of new versions of Ariba's products and
services; lack of market acceptance of Ariba's existing or future
products or services; inability to continue to develop competitive
new products and services on a timely basis; introduction of new
products or services by major competitors; the impact of any
acquisitions, including difficulties with the integration process
or the realization of benefits of a transaction; the impact of our
disposition, including the potential disruption of our ongoing
business; the ability to attract and retain qualified employees;
long and unpredictable sales cycles and the deferrals of
anticipated orders; declining economic conditions, including the
impact of a recession; inability to control costs; changes in the
company's pricing or compensation policies; significant
fluctuations in our stock price; the outcome of and costs
associated with pending or potential future regulatory or legal
proceedings; the impact of our acquisitions and dispositions,
including the disruption or loss of customer, business partner,
supplier or employee relationships; and the level of costs and
expenses incurred by Ariba as a result of such transactions.
Factors and risks associated with its business, including a number
of the factors and risks described above, are discussed in Ariba's
Form 10-Q filed with the SEC on February 7, 2012.
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