GlobalScape: This Is What Execution Looks Like
Summary
They explained this in the most recent shareholder letter, and the strategy mostly revolved around refocusing on their core EFT(enhanced file transfer) platform and shrinking their operating costs significantly. They also took a bold approach to both capital allocation and cost structure, laying off a significant portion of their employees to lower operating expenses, and repurchasing 19% of outstanding shares in a tender offer last year. Instead of trying to force the cloud SaaS offering on customers, or expand into new products, they’ve continued pushing MFT licenses and focusing on renewals of M&S(maintenance and support) contracts, which are the only recurring portion of their revenue. It would not be a more economic decision to purchase an upfront license with a maintenance fee unless you planned on staying with that product for a sufficient time period for the total cost of ownership to be lower. This would mostly mean pushing extra features added onto the core EFT product, improving renewal rates to drive M&S growth over time, and upgrading customers to the Platinum M&S contract, which offers 24/7 service.
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