Researchers estimate the global IT Business Management (ITBM) sector to grow at more than 20% annually over the next few years. The industry was estimated at a $2 billion market back in 2016. IT Business Management includes the IT Financial Management and Technology Business Management services. Bellevue, Washington-based Apptio (Nasdaq: APTI) is a leading vendor in the space.

Apptio’s Financials

Apptio recently announced its fourth quarter results that beat market expectations. Revenues for the quarter grew 18% over the year to $52.4 million, ahead of the Street’s forecast of $49.7 million. Adjusted net loss of $0.06 per share was also better than the market’s expected loss of $0.09 per share.

By segment, subscription revenues grew 21% to $42.6 million and accounted for 81% of total revenues. Services revenue grew 6% over the year to $9.8 million.

The company ended the year with revenues growing 17% to $188.5 million. Subscription revenues grew 19% to $155.4 million and services revenues increased 9% to $33.1 million. Non-GAAP net loss per share was $0.24 compared with a loss of $1.08 per share a year ago.

For the current quarter, Apptio forecast revenues of $51-$52 million with a net non GAAP loss of $2.5-$3 million. It expects to end the year with revenues of $220-$225 million and a break-even non GAAP operating income. Analysts estimate revenues at $51.65 million for the quarter and $223.08 million for the year.

Apptio’s Acquisitions

Apptio recently announced the acquisition of Digital Fuel from global investment firm Skyview Capital for an estimated $42.5 million. Founded in 2000, Digital Fuel was a service level management provider that expanded to 2008 to IT financial management solutions. In 2011, Digital Fuel was acquired by VMware and integrated with VMware’s cloud management and infrastructure products to help provide customers with transparency and control over costs and quality of IT services. In 2016, it was acquired by private equity firm Skyview Capital. Today, the company offers Technology Business Management solutions focused on helping IT leaders deliver work more cost effectively.