New Cloud Technologies, the firm behind the MyOffice productivity suite, faced a sharp revenue decline in 2023. The year saw a year-over-year drop of 43.8 percent, with annual revenue ending near 1.9 billion rubles. Financial statements highlighted by RBC show a net loss of 5.2 billion rubles for the year, reversing the prior year’s modest profit of 386.5 million rubles. Before 2022, the business endured several losing years, then rebounded to profitability as revenue surged 295 percent to 3.3 billion rubles in 2022. RBC’s reporting provides essential context for understanding the broader market forces at play within the enterprise software landscape in Russia and beyond.
NOT has dedicated itself to delivering office productivity solutions since its founding in 2013. It positions itself in the competitive arena of enterprise software. In 2019, Kaspersky Lab owned a 61.05 percent stake in NOT, underscoring links to a wider cybersecurity and software ecosystem. The product lineup includes core enterprise tools such as Text, Documents, Presentation, Mail, Table, Calendar, and Contacts, along with Mailion for corporate mail and Squadus, a digital workspace built to support collaboration across teams. Kaspersky Lab’s stake and the broader industry context help frame the company’s ecosystem for buyers seeking integrated security and productivity capabilities.
As of early March 2024, NOT reported that its portfolio supported operations for roughly 11,100 organizations. Among these customers are large institutions and national entities, including VTB Bank, Rosgvardia, Russian Post, and Russian Railways, highlighting the company’s reach within both commercial and public sectors. The customer roster and market footprint illustrate NOT’s breadth of adoption across private and government-related users, signaling resilience in a challenging market.
Company representatives attributed the 2023 decline in purchase activity to a mix of macroeconomic and sector-specific factors. They cited a broad drop in the import substitution rate for office software, aligning with an 18.1 percent decrease in purchases in 2023 versus the prior year. Additionally, limited budget allocations from government and semi-government bodies for software procurement constrained demand, a common challenge for domestic software providers during tighter fiscal periods. The market context explains how procurement trends influence domestic software ecosystems and the strategies firms use to navigate shifts in policy and spending. Analysts note that such dynamics can shape longer-term adoption and the total cost of ownership for enterprise tools.
Looking ahead, NOT signaled plans to accelerate the import substitution of Russian-made office software in 2024. Despite headwinds, company spokespeople noted early 2024 signs of improvement, highlighting a notable uptick in MyOffice license sales and higher average transaction values in the first quarter. These signals suggest a shift in buyer sentiment as organizations reassess their software ecosystems and long-term cost structures. Early 2024 indicators point toward potential shifts in purchasing patterns as clients reevaluate digital tools and total cost of ownership. Market observers monitor whether the uptick can translate into sustained growth and stability for NOT’s government and enterprise relationships.
Industry observers note that 2023 proved challenging for many software developers in the region, with competitive pressure from multinational vendors and evolving procurement practices shaping buying behavior. NOT’s performance illustrates how revenue volatility can follow cycles influenced by regulatory and market dynamics, even for firms with a robust installed base and a clear product roadmap. Analysts will watch 2024 results to determine whether the company can stabilize revenue, defend its government and enterprise relationships, and translate rising license volumes into sustainable profitability. A cautious tone may persist, yet early 2024 improvements hint at potential recovery as clients revisit digital transformation plans and total cost of ownership considerations for software suites. Industry analysis highlights how market forces influence software buyers and the strategies that drive ongoing adoption across sectors.
Note: This synthesis reflects market reporting and industry commentary on NOT and its MyOffice ecosystem. Attribution is provided to reported financial data and sector analyses where indicated.