Form 10-Q for ICG GROUP, INC.
8-Aug-2014
Quarterly Report
Executive Summary
ICG is a multi-vertical cloud technology company with offerings that create unique and compelling value for our customers and provide transformative efficiency to vertical markets worldwide. We manage our consolidated vertical cloud-based businesses, which operate in the government, compliance and insurance markets, respectively, with a uniform set of industry-standard recurring revenue metrics and specifically look to drive growth at those businesses by:
- continuously creating compelling, differentiated cloud-based products and services through investment in research and development;
- driving efficient long-term growth in recurring revenue through aggressive reinvestment in lead generation, marketing and sales;
- identifying, structuring and executing accretive acquisitions that accelerate strategic plans, increase revenue growth and, over time, improve margins;
- investing in and cultivating deep, vertical-expert management teams; and
- implementing strategies to obtain operational leverage and increased profitability while maintaining high revenue growth, particularly as a company scales.
We believe that, through those and other measures, we are developing a set of leading businesses that possess unique assets which are hard to replicate and which provide competitive differentiation in the sizable vertical markets in which they operate. We believe further that our vertical cloud business model focus, which drives the compelling value proposition of our businesses, well-positions us to generate sustained, meaningful long-term returns for our stockholders, through, among other things:
- high revenue visibility and predictability (and lower revenue volatility than traditional software companies);
- strong gross margins;
- low customer acquisition costs and attractive lifetime customer values, which allow for efficient growth through investment in sales and marketing;
- economies of scale inherent in multi-tenancy software architecture, which allow a focus on innovation; and
- ultimately, long-term profitability and free cash flow.
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