This week, I head out to San Francisco for the SIIA’s annual All About the Cloud (AATC) conference, where I will deliver a featured presentation on Day 1 of the event, and participate in the closing analyst panel on Day 2 (and where we have a schedule of more than 15 client meetings lined up).
But before I go, I wanted to share highlights from a terrific briefing that we had last week with Adaptive Planning, who is clearly in break-out growth mode. Not only is the firm growing at a 80 percent plus annualized clip (up from 50 percent in 2011), while remaining cash-flow positive, they have plenty of powder from their early 2012 venture financing led by Norwest Venture Partners – with about $20 million of the $22 million still in the bank.
The firm is broadening its initial value-prop focus on budgeting, planning and forecasting to now include financial consolidations, which both enlarges the “bag” for their direct sales force and partners (a “land-and-expand strategy”), while bringing it upmarket to new corporate and business-unit buyers at larger enterprises. While I think that they have some work to do on their messaging and go-to-market approach in this new segment, this should be a solid home run for them as it begins a more than subtle repositioning of the company (and which may require a firm-wide re-branding).
Bruce Guptill and I were a bit taken aback by the fact more than 50 percent of its 1,600 customers (2,000+ projected for YE2013) were outside of North America, suggesting that their significant channel-driven strategy (400+ global partners – NetSuite among them) is working. We were also a little bit surprised by the company’s positioning (or maybe it’s a slight repositioning) to add emphasis on its large-enterprise customers, when we had historically thought of Adaptive Planning as more targeting mid-sized companies (and ceding much of the LE market to Host Analytics and Oracle Hyperion, among others). But when prompted, Greg Schneider, VP of Marketing, shared that 25 percent of their customers are now large enterprises, or divisions thereof.
The net is that this is clearly a company on the move. While they were very tight-lipped in the call, Saugatuck speculates that they are poised to hit the $50M-$75M revenue sweet spot for an IPO filing over the next 18-24 months, which could be accelerated with additional synergistic acquisitions that either bolster its existing market positioning, or take it to new buying segments.
This blog originally appeared at Saugatuck Lens360.