CROC Reports Full 2019 and Q1 2020 Results

IT company CROC has reported its performance and financial results for 15 months: the whole of 2019 and first quarter of 2020. From January to March 2020, revenue grew by 37% YoY, with the company recording an 11% rise in customers (496 active[1]), 19% increase in number of projects (1,069 active) and a 16% higher average project price.

Moscow, Russia, May 21, 2020 --( The fastest growing CROC's business line in Q1 2020 was computing infrastructure[2], showing a 22% increase against Q4 2019 and generating 17% of total revenue in the first quarter of 2020. This follows the trend towards development and adoption of smart data processing, which is now prioritized in Russia. In 2019, computing capacity procurement for storing and processing big data accounted for almost half (49%) of AI technology implementation costs[3]. Most projects in this category aim to improve customer experience via comprehensive analysis of consumer behavior and personalized communications, as well as to make business more efficient and transparent. In pursuit of new growth opportunities, companies are testing new development scenarios, rearranging priorities, and responding to market changes even faster than before the pandemic. To achieve success, companies utilize a comprehensive range of technologies related to data and business processes.

In Q1 2020, the fastest revenue growth by industry[4] occurred in:
- Energy: 87%
- Retail: 27%
- Finance: 26%

The COVID-19 pandemic has reshaped market requirements. CROC saw skyrocketing revenue from computing infrastructure, communication platforms, and information security projects. In addition, there was also escalating demand for Robotic Process Automation and Business Processes Management (RPA and BPM), as well as remote e-document management systems.

"The pandemic will inevitably spur technological development, especially within the cloud segment and IT infrastructure outsourcing, with demand for AI and Big Data solutions also set to rise. This trend was highlighted by events during the first quarter of this year, with the decision to switch to online operations by a huge number of businesses in response to quarantine restrictions increasingly appearing like a natural evolution. Most companies have successfully gone through stage one of this transition, but still have a long journey ahead. We all did our best to adapt to the current situation, with companies now switching their focus from operating outside the office to exiting the economic tailspin. Obviously, pre-crisis business and threat models never included such risks and all action plans will thus have to be revised. Businesses will also rethink logistics in light of the risks of globalization highlighted by the crisis, especially within the manufacturing sector. Digital transformation of society is thus about to take another step forward – healthcare is just the beginning. We have announced a portfolio of solutions that address the crisis aftermath and will give our customers a competitive edge to accelerate business growth," said Boris Bobrovnikov, Founder and CEO, CROC.

To help companies in urgent need of transitioning employees to remote work, on March 23, CROC released a portfolio of 20 different express solutions to meet the needs of all businesses, irrespective of size and industry specifics. On May 8, CROC unveiled another portfolio of anti-crisis solutions designed to help businesses gradually leave business isolation mode, optimize investments leveraging IT, and ensure process stability, no matter the direction chosen by management: save, diversify or develop.

CROC performance and financial results in 2019

CROC’s revenue increased by 1.2% YoY to reach ₽30,670 million in 2019, with the number of customers (+15% to 768, including subsidiaries) and projects (+7% to 2,530) also rising. Furthermore, our high life-time value customers increased in number (up to 380)[5] and brought us 19% more revenue.

One of their greatest accomplishments in 2019 was geographical expansion both in Russia and abroad. Last year, the company covered 342 cities (+13%) in 82 of 85 Russian regions (+8%) and started international relations with three more countries: Belarus, Croatia, and Israel.

CROC’s industry-focused business lines[6] showed positive results in 2019, posting growth ranging grew from 9% to 65%. This excellent performance highlights the effectiveness of management’s strategic plan to deepen industry expertise.

In 2019, the strongest contributors to revenue growth were[7]:

- Computing infrastructure: +32%[8];
- Network solutions[9]: +19.5%;
- Software development: +18%;
- Information security: +55%;
- Multimedia systems: +61.5%;
- Infrastructure solutions: +29%;
- Unified communications[10]: +62%;
- Digital manufacturing: +84%.

[1] Customers contributing to revenue in Q1 2020.


[3] IDC report 'Russia Artificial Intelligence Market Opportunity'

[4] Against Q1 2019

[5] Number of companies that have been cooperating with CROC for 3+ years

[6] Banking, insurance, retail, metallurgy, energy, chemical, oil and gas

[7] According to share of total revenue

[8] Compared to 2018



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