May 19, 2020

Starbucks reaches a record high in this year's Q3

Technology
Starbucks
quarterly reports
Q3
Cinch Translations
3 min
Starbucks reaches a record high in this year's Q3

It’s 2015 and Starbucks Corporation is on a roll. It’s the 20th anniversary of the Frappuccino, recently acquired tea brand Teavana is ready to grow on a global scale, and Starbucks profits have never been better. This month the coffee brand released its Q3 financial results for the 2015 fiscal year, charting a time period ending on June 28. The results: reported quarterly revenue of $4.9 billion, an 18 percent increase in net revenue over Q3 FY2014. That’s a Q3 record high for Starbucks, and a promising prelude to an even brighter future.

Highlights of the quarter include a global comparable store sales increase of 7 percent, driven by a 4 percent increase in traffic. Broken down by territory the numbers get even better, like in the Americas region where Starbucks saw an 8 percent comparable store sales increase. Starbucks China and Asia Pacific locations did even better, seeing a hefty 11 percent comp sales increase driven by a 10 percent increase in traffic.

RELATED CONTENT: Study: Why employee first means business first

“Starbucks Q3 fiscal 2015 stands as among the strongest and most remarkable quarters in our over 23 years as a public company,” said Starbucks Chairman and CEO Howard Schultz in a press release to investors. “The 4 percent increase in global transactions we reported equates to our having served an additional 23 million customer occasions in Q3 of this year over last year, clearly evidencing a continuation of the strong momentum we have seen across our business and around the world this fiscal year.”

A good portion of this strong quarter can be attributed to the investments that Starbucks has made in its own growth, especially in North America where the this last quarter saw the deployment of promising new technology like the expansion of its mobile order and pay feature—first throughout the Pacific Northwest and then to more than 4,000 company-operated stores. Sales could increase even further as Starbucks moves forward with plans to fully roll out mobile order and pay services across the United States by the holiday season. Starbucks also boosted profits with the successful launch of 431 new stores within the quarter, as well as efforts to revamp and improve existing locations.

RELATED CONTENT: Starbucks has expanded mobile ordering after success in Portland

According to Starbucks CFO Scott Maw, striking a balance between the investments that Starbucks makes in itself is key to sustaining and promoting this kind of record growth.

“Starbucks very strong year over year financial performance in Q3 demonstrates our commitment to delivering best in class financial and operating results while at the same time investing in our future growth,” he added to the Starbucks press release. “We believe that by getting this balance right, we will be able to continue delivering exceptional growth, profitability and increased returns to our shareholders.”

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May 3, 2021

Dell to sell cloud-based iPaaS Boomi in US$4bn deal

Dell
Boomi
Cloud
Acquisition
Kate Birch
3 min
Francisco Partners and TPG Capital agree to acquire Boomi – provider of cloud-based integration platform as a service – from Dell Technologies for US$4bn
Francisco Partners and TPG Capital agree to acquire Boomi – provider of cloud-based integration platform as a service – from Dell Technologies for U...

Global investment firm Francisco Partners and private equity platform TPG Capital have entered into an agreement with Dell Technologies to acquire cloud-based integration platform as a service provider Boomi in a cash deal valued at US$4bn. The deal is expected to complete this year.

“Boomi has flourished as part of Dell Technologies, growing exponentially since we acquired them in 2010. This proposed transaction positions Boomi for its next phase of growth and is the right move for both companies, our shared customers and partners,” said Jeff Clarke, vice chairman and chief operating officer of Dell Technologies.

“For us, we're focused on fuelling growth by continuing to modernise our core infrastructure and PC businesses and expanding in high-priority areas including hybrid and private cloud, edge, telecom and APEX. All designed to help organisations thrive in the do-from-anywhere economy.”

Dell’s Boomi sell-off follows VMware spin-off

This announcement comes just two weeks after Dell said it would spin-off its 81% equity ownership of VMware to form two standalone companies. This would result in an expected US$9.3bn cash dividend payment to Dell, which says it will use those funds to pay down debt.

When Dell acquired Boomi in 2010 for an undisclosed fee, Boomi offered the industry’s only pure SaaS application integration platform, powered by its revolutionary AtomSphere technology. Dell saw Boomi as addressing one of the top barriers to cloud adoption at that time, which was managing and integrating cloud-based applications with existing applications and databases.

Now, Boomi has more than 15,000 customers globally and is still seen as a leader when it comes to organisations connecting applications, processes and people across a range of locations and devices – a process that can take weeks rather than months.

“I am incredibly proud that through innovation, passion and relentless execution, the Boomi team has created a unified platform for the modern-day hybrid IT landscape that thousands of customers worldwide depend on to digitally transform their business,” said Chris McNabb, chief executive officer of Boomi.

“By partnering with two tier-one investment firms like Francisco Partners and TPG, we can accelerate our ability for our customers to use data to drive competitive advantage. In this next phase of growth, Boomi will be in a position of strength to further advance our innovation and market trajectory while delivering even more value to our customers.”

Francisco Partners has invested in more than 300 technology companies since its launch 20 years ago and has more than US$25bn in assets under management.

“The ability to integrate and connect data and workflows across any combination of applications or domains is a critical business capability, and we strongly believe that Boomi is well positioned to help companies of all sizes turn data into their most valuable asset,” said Dipanjan Deb, co-founder and chief executive officer, and Brian Decker, partner, at Francisco Partners

Nehal Raj, partner, and Art Heidrich, principal, at TPG Capital added: “The need for automation and data integration across applications has never been greater. Boomi's cloud-native platform enables enterprises to streamline business processes and is essential for driving digital transformation.”

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