Mediafly Grows Business with Ariba
Startup leverages Ariba Network to access capital needed to expand fast-growing operations
SUNNYVALE, Calif., March 13, 2012 – 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.