Solera Holdings’ founder, chairman and CEO Tony Aquila called glass a $2 billion market opportunity during his company’s fiscal first-quarter conference call.
“[W]e deployed more than $300 million in capital from our balance sheet for strategic inorganic investments to expand into glass, car rental, pet and other software services,” Aquila pointed out during the call.
“In the glass business, we want to help them more technologically with their strategy. I think that will really not emerge entirely for another 12 months or so but we look to leverage a lot of software,” he said. “We’re already making a move on some software that we’ve put a lot of money into that the industry doesn’t have access to which really changes the accuracy of the game. That’s still working on the efficient side, but looking at the digital side with glass for auto and home, we see a tremendous opportunity to be the ones that can help with the customer engagement.
“I think when you guys see some new technologies that we’ve developed … how it basically walks you through the process. What are the options with the glass and so on? We think that more self-service activities will occur and customers will like that. Insurance companies will love that. And it continues to bring us to the household,” he added.
The company reported first-quarter constant currency total revenue growth of 28.1 percent and cash EPS growth of 26.2 percent.
“This performance was driven by organic revenue growth of 4.7 percent and contributions from key investments during the last year that have expanded our addressable market into: service, maintenance and repair; glass; and property,” Aquila said. “Through the addition of these capabilities, we are better positioned to serve the risk and asset management needs of our P&C customers beyond motor claims.”
Company revenues for the first quarter were $280.1 million, up 28.5 percent from the same period of last year. On a constant currency basis, the company reported revenues increased by approximately 28.1 percent from the same period of the prior year.
Net income was $12.4 million, a 9.7-percent decrease from the prior year.
Revenue for the Americas was $144.2 million, up 50.1 percent over the same period in the previous year.
“After excluding the revenues of Service Repair Solutions and the Insurance and Services Division of Pittsburgh Glass Works, Americas’ revenues increased 6 percent over the prior year first quarter and , on a constant currency basis, increased 6.7 percent over the prior year first quarter,” according to a company statement.
Solera’s revenues from insurance company customers came in at $106.1 million for the quarter, up 11.8 percent.
The company has also tweaked its guidance for fiscal 2015. The revised outlook shows $1.13 billion to $1.15 billion, down from $1.15 billion to $1.17 previously reported.