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.

About Ariba, Inc
Ariba, Inc. is the world’s business commerce network. Ariba combines industry-leading cloud-based applications with the world's largest web-based trading community to help companies discover and collaborate with a global network of partners. Using the Ariba® Network, businesses of all sizes can connect to their trading partners anywhere, at any time from any application or device to buy, sell and manage their cash more efficiently and effectively than ever before. Companies around the world use the Ariba Network to simplify inter-enterprise commerce and enhance the results that they deliver. Join them at: www.ariba.com
###
Copyright © 1996 - 2015 Ariba, Inc.
Ariba, the Ariba logo, AribaLIVE, Ariba.com, Ariba.com Network, Ariba Spend Management. Find it. Get it. Keep it. and PO-Flip are registered trademarks of Ariba, Inc. Ariba Procure-to-Pay, Ariba Buyer, Ariba eForms, Ariba PunchOut, Ariba Services Procurement, Ariba Travel and Expense, Ariba Procure-to-Order, Ariba Procurement Content, Ariba Sourcing, Ariba Savings and Pipeline Tracking, Ariba Category Management, Ariba Category Playbooks, Ariba StartSourcing, Ariba Spend Visibility, Ariba Analysis, Ariba Data Enrichment, Ariba Contract Management, Ariba Contract Compliance, Ariba Electronic Signatures, Ariba StartContracts, Ariba Invoice Management, Ariba Payment Management, Ariba Working Capital Management, Ariba Settlement, Ariba Supplier Information and Performance Management, Ariba Supplier Information Management, Ariba Discovery, Ariba Invoice Automation, Ariba PO Automation, Ariba Express Content, Ariba Ready, and Ariba LIVE are trademarks or service marks of Ariba, Inc. All other brand or product names may be trademarks or registered trademarks of their respective companies or organizations in the United States and/or other countries.
Ariba Safe Harbor
Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba's operating and financial results to differ materially from current expectations include, but are not limited to: the impact of the credit crises on Ariba's results of operations and financial condition; delays in development or shipment of new versions of Ariba's products and services; lack of market acceptance of Ariba's existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the impact of any acquisitions, including difficulties with the integration process or the realization of benefits of a transaction; the impact of our disposition, including the potential disruption of our ongoing business; the ability to attract and retain qualified employees; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions, including the impact of a recession; inability to control costs; changes in the company's pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions and dispositions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-Q filed with the SEC on May 04, 2012.

For More Information

Karen Master
Ariba, Inc.
412-297-8177