Workday continues its acquisition trajectory

deal architect

Many companies make acquisitions to diversify into new markets. Others do it to acquire revenues and customer bases. Workday has been consistent in the last few years to acquire analytical capabilities and talent especially in its back office focus areas. Cloud Computing, SaaS

Preparing For An Acquisition

YoungUpstarts

In the current economic landscape, it’s common for startups and businesses to seek a buyout or acquisition — in fact, it’s frequently the goal from the start. Watch out for complex areas such as accounting for revenue, inventory, contingencies, equity instruments and consolidation.

Workday continues its acquisition trajectory

deal architect

Many companies make acquisitions to diversify into new markets. Others do it to acquire revenues and customer bases. Workday has been consistent in the last few years to acquire analytical capabilities and talent especially in its back office focus areas. Cloud Computing, SaaS

Revenue Recognition’s Effect On M&A

YoungUpstarts

There has been a lot of chatter regarding changes in revenue recognition criteria lately, but the effects it will have on the evaluation of companies planning an exit is just beginning to emerge. Recognize revenue when performance obligations are met (good(s) or service(s) have been provided).

Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

Of course, these are important ingredients to growth, but the – perhaps unconventional – truth is that this kind of growth can be riskier and less compelling to investors than growth through acquisition. Value the target acquisition as a standalone business first. by Kenneth H.

Should Entrepreneurs Grow Revenue Or User Count?

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion.

5 Reasons Startups Need Revenue As Well As Users

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit.

Factors To Consider When Creating An Acquisition Strategy As A Tech Startup

YoungUpstarts

The goal of most startup companies is to increase their market share and revenues. For most of those that manage to grow big, acquisition of other companies plays a major role in their success. In fact statistics show that only a quarter of acquisitions succeed.

Quickly Unpacking SAP’s $8B Acquisition Of Qualtrics

Haystack

In the wake of what is now considered the second-highest enterprise SaaS acquisition in history, below are some quick takeaways that are on my mind: 1/ The Efficiency Of Silicon Slopes – By now it should be no surprise that Utah’s tech ecosystem is on fire. Tweeted VC Villi Iltchev, “ This acquisition is completely consistent with prior SAP deals where you buy the leader and not worry about price (Ariba, SuccessFactors, Concur and now Q). ”.

Missed Expectations and The Eighty Percent Acquisition Rule

Berkonomics

But it is within the range of experience by many of us professional investors, and with those who have acted as brokers, serial purchasers or consultants for acquisitions.

Startups Should Fuel Growth By Acquisitions

Startup Professionals Musings

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came early.

Drive your recurring revenues.

Berkonomics

I have a positive fetish for recurring revenue. In the virtual world, a much higher percentage of incremental revenue falls straight to the bottom line. With the right recurring revenue model, top line growth can really shoot the lights out.

Quickly Unpacking Two Recent Acquisitions (of Cylance; of PlanGrid)

Haystack

It’s been a few years now since BlackBerry made phones, and this represents its largest purchase to date (by a factor of 3) since its 2015 acquisition of Good Technology. Compare that with $3-4M seed rounds today, you could say PlanGrid raised a pre-seed round, but then quickly found their market to target, and were able to finance operations with revenue until Sequoia knocked on their door.

Non-tech companies are making more acquisitions

The Equity Kicker

Techcrunch has an article up today about the increasing number of tech acquisitions by non-tech companies. Recent examples include: Monsanto’s acquisition of Climate Corporation for $1.1bn. Staples’ acquisition of Runa. First Data’s acquisition of Clover.

How to plan to make a successful acquisition

Berkonomics

One of my company CEO’s recently described his rule for acquisition success, and it resonated with me as a great goal for planning during acquisition exercises.

How To Boost eCommerce Revenues With Upselling

ConversionXL

According to Forrester research analyst Sucharita Mulpuru , product recommendations are responsible for an average of 10-30% of eCommerce site revenues. . Way back in 2006, Amazon reported that 35% of it’s revenues were as a direct result of it’s cross sales and upselling efforts.

Customer Acquisition is Oxygen to a Startup

This is going to be BIG.

They’re more than doubling revenue every quarter and will soon be on track for a million dollar run rate. The good thing is that customer acquisition is a pretty easily testable thing. I’d love to figure out who the top 10-20 folks are in the customer acquisition world in NYC.

Why large companies make acquisitions

The Equity Kicker

Mergers and acquisitions have a notoriously high failure rate and as a result investors knocked a couple of percent off Cisco’s share price yesterday following the announcement of their $5bn acquisition of NDS Group. This morning the Financial Times’s Lex column ran a piece which gives a partial explanation of why big companies push ahead with acquisitions in spite of the stats and antipathy from their shareholders. This is the money quote: Many acquisitions fail.

Refining your Customer Acquisition Cost (CAC) Ratio

Cracking the Code

This metric measures the ratio of the annualized additional recurring revenue generated by your sales and marketing investments. The simple ratio based on GAAP revenue should be used primarily for benchmarking public companies as it is fairly inaccurate. Happy new year 2014!

How to minimize customer acquisition costs

Duct Tape Marketing

How to minimize customer acquisition costs written by Guest Post read more at Duct Tape Marketing. However, if you are able to minimize Customer Acquisition Costs (CAC), you’ll have a sustainable business that does more than stay afloat. increase in revenue.

Digital Revenue Expert – Vince Thompson

SoCal CTO

Today I lead a small consultancy that helps advertising supported develop and scale the revenue producing sides of their businesses. I usually.just focus on revenue. More Visible Networking? this time with Vince Thompson. You’ve got a REALLY diverse background. What’s the short version? Vince: I’m an author, speaker and management consultant with a special expertise in online media sales.

Revenue Growth For Lenovo In 2Q15 Obscures Unfamiliar Challenges For Its PC And Smartphones Business: TBR

YoungUpstarts

Lenovo’s modest overall revenue growth in calendar 2Q15 – 3.1% Year-to-year revenue growth in 2Q15 was due entirely to revenue infusion from its inorganic Motorola and System x businesses, as Lenovo’s PC business, which accounted for 68% of Lenovo’s total revenue in 2Q15, declined 12.7%

Five Thoughts About the Instagram Acquisition

This is going to be BIG.

That didn't quite work out--while Zynga does represent over 10% of Facebook's revenue, Zynga continued to grew, went public at a multi-billion dollar valuation, and just bought a significant mobile foothold with OMGPOP. Price : If you're looking at the billion, you're looking at the wrong number. It's the 1%--because of Facebook is valued at $100 billion, they just paid 1% of their market cap to acquire the only thing that looks remotely competitive to their core offering in the market.

Personalization: How to Build a Revenue Boosting Program from Scratch

ConversionXL

Acquisition segments. Acquisition segments. It is about focusing your marketing efforts on a few select companies that could represent huge revenue streams. The post Personalization: How to Build a Revenue Boosting Program from Scratch appeared first on CXL.

Three types of acquisition – view from a public company CEO

The Equity Kicker

At a conference last week Autodesk CEO Carl Bass said that he thinks about acquisitions in three buckets: companies that are really people who have a technology that Autodesk wants to build up (acquihires). large scale acquisitions. He wants to make lots of acquisitions in the first category, a handful in the second, and only rarely in the third. Also very important to note is that the number of acquisitions declines precipitously as the valuation rises.

YouTube revenues forecast to hit $5.6bn this year

The Equity Kicker

eMarketer are predicting that YouTube revenues will hit $5.6bn this year, 50% up on last year (reported in the Guarian ). Here are some other relevant facts: Projections of YouTube’s revenues are increasing over time – in May Morgan Stanley were predicting $4bn.

How to Use Growth Hacking to Increase Revenue 20x in Just 12 Months

Up and Running

Between January 2015 and January 2016, we grew our platform Slidebean from $1K to $20K in monthly recurring revenue. Getting the first tracks of revenue is one of the toughest processes of building a startup.

How we built €20,000 in recurring revenue within 90 days of launch

The Next Web

We launched Ruby & Duke on 15th February and in less than 90 days we have hit €20,000 in monthly recurring revenue so I thought it might be useful to explain how we’ve done that. When I build startups I like to share as much information as possible.

The Eighty Percent Acquisition Rule

Berkonomics

But it is within the range of experience by many who have acted as brokers, serial purchasers or consultants for acquisitions. The answer is that the most sophisticated buyers have experience in integrating an acquisition successfully into an enterprise and those successes are the most visible models for others to follow. Eighty percent of all businesses purchased by another company or by a new investor-operator fail to meet the stated expectations of the buyer after one year.

WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear: Startups and Marketing for Geeks

Late last year we passed $100M in annual recurring revenue. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents. People said there’s no money in hosting. WordPress is just a toy.

How an event led to multimillions of dollars in product revenue

Hippoland

Today, they have around 1m subscribers, is doing multimillions in revenue per year, and has 20 employees. But, I rarely see startups doing events as a way of customer acquisition to jumpstart a new product or a new company. Last Friday, I attended the 5th Hustle Con.

How an event led to multimillions of dollars in product revenue

Hippoland

Today, they have around 1m subscribers, is doing multimillions in revenue per year, and has 20 employees. But, I rarely see startups doing events as a way of customer acquisition to jumpstart a new product or a new company. Last Friday, I attended the 5th Hustle Con.

How to design a recurring revenue model that will attract capital

The Next Web

One of the first things that a venture capitalist looks for in assessing an investment opportunity is the revenue model of the business. More specifically, they are looking for the frequency of that revenue stream, and whether or not it is recurring and easily predictable.

Acquisition Planning Process: 6 Questions to Answer Right Now

Growthink Blog

Google made 25 acquisitions in 2011; buying companies including Clever Sense, RightsFlow, Apture, Katango, SocialGrapple and more. But Google's acquisitions weren't even a blip on the entire radar screen of acquisitions. What will be the date of that acquisition?

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

In pure web businesses where the headcount doesn’t need to grow as customer acquisition scales, it is also very useful to look customer acquisition costs without the headcount costs.) It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model.

Snapchat and that old no revenues debate

Fred Destin

Not because of the reported $4 billion offer but because of the explosion of age-old arguments about how scandalous it is for a company with no revenues to be valued that highly. Here''s a selection: "why do investors think a silly app with no clear revenue model is worth so much money?"

FullContact Continues Its Journey To Solve The Contact Management Problem

Feld Thoughts

They followed this up with two acquisitions – first Conspire and then Profoundis. I love using a targeted acquisition approach in conjunction with a business that has a clear strategy and strong organic growth.

2012 has been ‘the year of mobile’ but the big mobile ad acquisitions were made three years ago

The Equity Kicker

I wouldn’t argue with that, but the interesting thing is that the landmark mobile adtech acquisitions happened three years ago when Google acquired Admob for $750m in Nov 2009 and Apple followed with the acquisition of Quattro Wireless for $275m in Jan 2010.

Mobile 113

The Cost of Customer Acquisition: How Much Can You Spend to Earn New Business?

Duct Tape Marketing

The Cost of Customer Acquisition: How Much Can You Spend to Earn New Business? Is it revenue or is it bookings? Once you understand the lifetime value of a customer, you can determine how much you’re willing to pay in new customer acquisition costs.

Two Decade-Defining Acquisitions? Then (Google) & Now (Apple)

Genuine VC

Obviously this moniker lives on in Google’s ad network, Adsense for Content, which serves as a base for a significant chunk of Google’s revenue today. In a decade in which we saw the web become increasingly distributed with a proliferation websites and content, this acquisition served as a foundation to empower Google to move beyond their core search Adwords product. It should be duly noted that, unlike Google, Apple isn’t very acquisitive (14 vs. 59 in the past ten years).

Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

ReadWriteStart

I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. The majority of the discussion around this venture was around additional customer acquisition methods.

Two Decade-Defining Acquisitions? Then (Google) & Now (Apple)

Genuine VC

Obviously this moniker lives on in Google’s ad network, Adsense for Content, which serves as a base for a significant chunk of Google’s revenue today. In a decade in which we saw the web become increasingly distributed with a proliferation websites and content, this acquisition served as a foundation to empower Google to move beyond their core search Adwords product. It should be duly noted that, unlike Google, Apple isn’t very acquisitive (14 vs. 59 in the past ten years).

Can Paid Customer Acquisition Work With Freemium?

Software By Rob

I received the following question from a reader: I was wondering if you had any thoughts on cost of customer acquisition for freemium businesses. quite hard, but I don’t think paid acquisition could possibly work here. Have you seen paid acquisition work for freemium businesses?