Pursuing a Growth Strategy that Spurs Innovation
How Xactly found an investment partner to advance its market position and product capabilities.
Designing the right incentives to inspire sales professionals and align performance with business goals is critical to the financial health of an organization. However, compensation is often one of the most complex expenses for any company to manage.
Xactly, a provider of cloud-based incentive solutions, pioneered the SaaS business model in its market and aggregated an unrivaled database of sales planning and performance information. With its software, Xactly’s customers can design better compensation plans that drive employee performance using automation and predictive insights.
Founder and CEO Chris Cabrera helped to secure an IPO for the company in 2015 but quickly realized that with this financial strategy, the company was not optimized to support his goals for penetrating the market. From a revenue standpoint, Xactly was on the smaller side for a public company, but Cabrera had aspirations to grow the business both organically and inorganically. With his board interested in staying the course to ensure earnings remained stable, Cabrera began to consider private equity as a way off of the “quarterly treadmill.”