Dec 1, 2018 · 22m · top-founders

1225 Enterprise Management Company Alfresco Passes $100M ARR, IPO Next?

Nathan Latka · 9m spoken Bernadette Nixon · 9m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The Top Entrepreneurs Podcast, host Nathan Latka interviews Alfresco CEO Bernadette Nixon to examine the enterprise software company's growth past $100 million in ARR, its buyout by Thomas H. Lee Partners, and its strategic shift upmarket.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 50.5% of the talking time here. How this is scored →

Nathan as informed peer 5.3 Guest teaching 3.6 Guest disagreement 2.3 Nathan pushing back 3.3
05100:0010:0020:001:57–4:25 · Nathan as informed peer 5/10 Alfresco Platform Architecture and NASA Enterprise Use Case Latka explores Alfresco's business model and platform functionality, clarifying whether it serves as an internal enterprise system versus a public CMS. Nixon explains their enterprise content and process management architecture using NASA as an enterprise case study.4:26–6:28 · Nathan as informed peer 4/10 Company Timeline and the Thomas H. Lee Private Equity Buyout Latka traces the corporate history and asks about the private equity buyout by Thomas H. Lee Partners. Nixon shares how inbound interest led to the acquisition and explains that TH Lee bought into a growth thesis rather than a cost-cutting play.6:28–10:13 · Nathan as informed peer 6/10 Pro Forma Performance and Cloud-Native AWS Strategy Latka challenges Nixon on whether any part of their acquisition pro forma failed, expressing skepticism when she claims they hit targets exactly on the money. He also drills into customer counts versus seat licenses when Nixon cites millions of users.10:16–14:45 · Nathan as informed peer 6/10 HostGator Web Hosting Sponsor Segment After an ad read, Latka probes past venture funding, team scale, and customer acquisition cost payback period ratios. Latka questions what Nixon means by improving CAC metrics, referencing Ping Identity's acquisition strategy as a point of comparison.14:46–16:47 · Nathan as informed peer 7/10 Surpassing $100M ARR and Bookings Growth Acceleration When Nixon refuses to disclose exact revenue run rates, Latka pushes back by quoting historical CEO public disclosures and recalculates implied revenue from ACV and logo counts. Nixon deflects specifics but confirms crossing $100M ARR.16:48–19:43 · Nathan as informed peer 6/10 Sales Quota Setting, Role Structures, and Compensation Strategy Latka digs into Nixon's sales executive background, questioning quota-to-OTE ratios and compensation design across roles. Nixon clarifies her philosophy of pegging quotas fairly per role to ensure customer-centric selling rather than aggressive squeezing.19:43–21:28 · Nathan as informed peer 3/10 The Famous Five Rapid-Fire Executive Questions Latka runs through his standard rapid-fire Famous Five questions covering business books, CEO influences, workflow tools like Evernote and iThoughts, and life lessons.1:57–4:25 · Guest teaching 4/10 Alfresco Platform Architecture and NASA Enterprise Use Case Latka explores Alfresco's business model and platform functionality, clarifying whether it serves as an internal enterprise system versus a public CMS. Nixon explains their enterprise content and process management architecture using NASA as an enterprise case study.4:26–6:28 · Guest teaching 3/10 Company Timeline and the Thomas H. Lee Private Equity Buyout Latka traces the corporate history and asks about the private equity buyout by Thomas H. Lee Partners. Nixon shares how inbound interest led to the acquisition and explains that TH Lee bought into a growth thesis rather than a cost-cutting play.6:28–10:13 · Guest teaching 5/10 Pro Forma Performance and Cloud-Native AWS Strategy Latka challenges Nixon on whether any part of their acquisition pro forma failed, expressing skepticism when she claims they hit targets exactly on the money. He also drills into customer counts versus seat licenses when Nixon cites millions of users.10:16–14:45 · Guest teaching 3/10 HostGator Web Hosting Sponsor Segment After an ad read, Latka probes past venture funding, team scale, and customer acquisition cost payback period ratios. Latka questions what Nixon means by improving CAC metrics, referencing Ping Identity's acquisition strategy as a point of comparison.14:46–16:47 · Guest teaching 4/10 Surpassing $100M ARR and Bookings Growth Acceleration When Nixon refuses to disclose exact revenue run rates, Latka pushes back by quoting historical CEO public disclosures and recalculates implied revenue from ACV and logo counts. Nixon deflects specifics but confirms crossing $100M ARR.16:48–19:43 · Guest teaching 4/10 Sales Quota Setting, Role Structures, and Compensation Strategy Latka digs into Nixon's sales executive background, questioning quota-to-OTE ratios and compensation design across roles. Nixon clarifies her philosophy of pegging quotas fairly per role to ensure customer-centric selling rather than aggressive squeezing.19:43–21:28 · Guest teaching 2/10 The Famous Five Rapid-Fire Executive Questions Latka runs through his standard rapid-fire Famous Five questions covering business books, CEO influences, workflow tools like Evernote and iThoughts, and life lessons.1:57–4:25 · Guest disagreement 1/10 Alfresco Platform Architecture and NASA Enterprise Use Case Latka explores Alfresco's business model and platform functionality, clarifying whether it serves as an internal enterprise system versus a public CMS. Nixon explains their enterprise content and process management architecture using NASA as an enterprise case study.4:26–6:28 · Guest disagreement 1/10 Company Timeline and the Thomas H. Lee Private Equity Buyout Latka traces the corporate history and asks about the private equity buyout by Thomas H. Lee Partners. Nixon shares how inbound interest led to the acquisition and explains that TH Lee bought into a growth thesis rather than a cost-cutting play.6:28–10:13 · Guest disagreement 4/10 Pro Forma Performance and Cloud-Native AWS Strategy Latka challenges Nixon on whether any part of their acquisition pro forma failed, expressing skepticism when she claims they hit targets exactly on the money. He also drills into customer counts versus seat licenses when Nixon cites millions of users.10:16–14:45 · Guest disagreement 2/10 HostGator Web Hosting Sponsor Segment After an ad read, Latka probes past venture funding, team scale, and customer acquisition cost payback period ratios. Latka questions what Nixon means by improving CAC metrics, referencing Ping Identity's acquisition strategy as a point of comparison.14:46–16:47 · Guest disagreement 5/10 Surpassing $100M ARR and Bookings Growth Acceleration When Nixon refuses to disclose exact revenue run rates, Latka pushes back by quoting historical CEO public disclosures and recalculates implied revenue from ACV and logo counts. Nixon deflects specifics but confirms crossing $100M ARR.16:48–19:43 · Guest disagreement 2/10 Sales Quota Setting, Role Structures, and Compensation Strategy Latka digs into Nixon's sales executive background, questioning quota-to-OTE ratios and compensation design across roles. Nixon clarifies her philosophy of pegging quotas fairly per role to ensure customer-centric selling rather than aggressive squeezing.19:43–21:28 · Guest disagreement 1/10 The Famous Five Rapid-Fire Executive Questions Latka runs through his standard rapid-fire Famous Five questions covering business books, CEO influences, workflow tools like Evernote and iThoughts, and life lessons.1:57–4:25 · Nathan pushing back 2/10 Alfresco Platform Architecture and NASA Enterprise Use Case Latka explores Alfresco's business model and platform functionality, clarifying whether it serves as an internal enterprise system versus a public CMS. Nixon explains their enterprise content and process management architecture using NASA as an enterprise case study.4:26–6:28 · Nathan pushing back 1/10 Company Timeline and the Thomas H. Lee Private Equity Buyout Latka traces the corporate history and asks about the private equity buyout by Thomas H. Lee Partners. Nixon shares how inbound interest led to the acquisition and explains that TH Lee bought into a growth thesis rather than a cost-cutting play.6:28–10:13 · Nathan pushing back 6/10 Pro Forma Performance and Cloud-Native AWS Strategy Latka challenges Nixon on whether any part of their acquisition pro forma failed, expressing skepticism when she claims they hit targets exactly on the money. He also drills into customer counts versus seat licenses when Nixon cites millions of users.10:16–14:45 · Nathan pushing back 4/10 HostGator Web Hosting Sponsor Segment After an ad read, Latka probes past venture funding, team scale, and customer acquisition cost payback period ratios. Latka questions what Nixon means by improving CAC metrics, referencing Ping Identity's acquisition strategy as a point of comparison.14:46–16:47 · Nathan pushing back 6/10 Surpassing $100M ARR and Bookings Growth Acceleration When Nixon refuses to disclose exact revenue run rates, Latka pushes back by quoting historical CEO public disclosures and recalculates implied revenue from ACV and logo counts. Nixon deflects specifics but confirms crossing $100M ARR.16:48–19:43 · Nathan pushing back 3/10 Sales Quota Setting, Role Structures, and Compensation Strategy Latka digs into Nixon's sales executive background, questioning quota-to-OTE ratios and compensation design across roles. Nixon clarifies her philosophy of pegging quotas fairly per role to ensure customer-centric selling rather than aggressive squeezing.19:43–21:28 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Executive Questions Latka runs through his standard rapid-fire Famous Five questions covering business books, CEO influences, workflow tools like Evernote and iThoughts, and life lessons.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 74.2% · guest 25.8%0:00 · Nathan 74.2% · guest 25.8%3:00 · Nathan 29.2% · guest 70.8%3:00 · Nathan 29.2% · guest 70.8%6:00 · Nathan 49.3% · guest 50.7%6:00 · Nathan 49.3% · guest 50.7%9:00 · Nathan 59.7% · guest 40.3%9:00 · Nathan 59.7% · guest 40.3%12:00 · Nathan 40.7% · guest 59.3%12:00 · Nathan 40.7% · guest 59.3%15:00 · Nathan 49.2% · guest 50.8%15:00 · Nathan 49.2% · guest 50.8%18:00 · Nathan 38.3% · guest 61.7%18:00 · Nathan 38.3% · guest 61.7%21:00 · Nathan 80.1% · guest 19.9%21:00 · Nathan 80.1% · guest 19.9%
Sharpest disagreement ▶ 15:16 Nixon Refuses to Disclose Private Financials

Nixon firmly dismisses Latka's revenue run-rate question by shutting down public disclosure of private company metrics.

Hardest push from Nathan ▶ 7:00 Latka Challenges Flawless Pro Forma Claim

Latka directly expresses disbelief that pro formas were hit perfectly without error, citing large-scale corporate mergers where forecasts inevitably miss.

Biggest teaching moment ▶ 9:03 Nixon Distinguishes Logos from Paid User Seats

Nixon clarifies the distinction between commercial enterprise accounts and end-user seats when Latka misunderstands millions of users as direct credit card transactions.

Nathan holds their own ▶ 15:53 Latka Computes Enterprise ARR Math

Latka calculates implied recurring revenue on the fly by multiplying 1,370 customer logos by the $200k new ACV figure to challenge her narrative.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Alfresco Platform Architecture and NASA Enterprise Use Case 5412 Latka explores Alfresco's business model and platform functionality, clarifying whether it serves as an internal enterprise system versus a public CMS. Nixon explains their enterprise content and process management architecture using NASA as an enterprise case study.
Company Timeline and the Thomas H. Lee Private Equity Buyout 4311 Latka traces the corporate history and asks about the private equity buyout by Thomas H. Lee Partners. Nixon shares how inbound interest led to the acquisition and explains that TH Lee bought into a growth thesis rather than a cost-cutting play.
Pro Forma Performance and Cloud-Native AWS Strategy 6546 Latka challenges Nixon on whether any part of their acquisition pro forma failed, expressing skepticism when she claims they hit targets exactly on the money. He also drills into customer counts versus seat licenses when Nixon cites millions of users.
HostGator Web Hosting Sponsor Segment 6324 After an ad read, Latka probes past venture funding, team scale, and customer acquisition cost payback period ratios. Latka questions what Nixon means by improving CAC metrics, referencing Ping Identity's acquisition strategy as a point of comparison.
Surpassing $100M ARR and Bookings Growth Acceleration 7456 When Nixon refuses to disclose exact revenue run rates, Latka pushes back by quoting historical CEO public disclosures and recalculates implied revenue from ACV and logo counts. Nixon deflects specifics but confirms crossing $100M ARR.
Sales Quota Setting, Role Structures, and Compensation Strategy 6423 Latka digs into Nixon's sales executive background, questioning quota-to-OTE ratios and compensation design across roles. Nixon clarifies her philosophy of pegging quotas fairly per role to ensure customer-centric selling rather than aggressive squeezing.
The Famous Five Rapid-Fire Executive Questions 3211 Latka runs through his standard rapid-fire Famous Five questions covering business books, CEO influences, workflow tools like Evernote and iThoughts, and life lessons.

Statements from this episode (9)

Disclosure
Alfresco contracts range from $20,000 for legacy to millions for enterprise.
“And you know, a lot of companies that are with us from those days, Pay us probably 20 K a year, but over the years we've gone upmarket in terms of serving some of the largest companies and governments globally, and those customers can end up spending, you know…”
Bernadette Nixon Dec 1, 2018 ▶ 3:57
Disclosure
Alfresco enterprise customers typically start around $200,000 and expand over time.
“I, I'd say people start at probably 200 K and they build up from there.”
Bernadette Nixon Dec 1, 2018 ▶ 4:17
Insight
Business process and enterprise content management converge due to shared documentation.
“I'd always believed in this notion of process and content coming together, because every process typically has some content associated with it.”
Bernadette Nixon Dec 1, 2018 ▶ 4:51
Assertion Not checkable as stated
Alfresco serves roughly 1,370 customers and millions of end users.
“Roughly about 1313 170 customers, but when you look at the number of users that we have, it's in the millions.”
Bernadette Nixon Dec 1, 2018 ▶ 8:31
Assertion Not checkable as stated
Cisco has between 150,000 and 250,000 employees using Alfresco.
“One particular customer, for example, Cisco might have between a 150,250 thousand people using us.”
Bernadette Nixon Dec 1, 2018 ▶ 9:18
Disclosure
Alfresco spends $1.60 to $2.00 to acquire each new dollar of ARR.
“Depending upon which ways you actually calculate that. Is it the magic number? Is it, you know, is it Bessemer? Is it the way that Salesforce does it? So you're looking at anywhere between sort of 1.6 and two, just over two.”
Bernadette Nixon Dec 1, 2018 ▶ 12:29
Assertion Not checkable as stated
Alfresco achieved 50% year-over-year bookings growth in the prior year.
“If you take a look at our bookings growth last year, it was 50% year over year growth, or you could look at it as six times the market CAGA.”
Bernadette Nixon Dec 1, 2018 ▶ 14:51
Assertion Not checkable as stated
Alfresco has surpassed $100 million in annual recurring revenue.
“We've broken through the hundred million mark and, you know, we're looking, looking at, you know, how do we double it?”
Bernadette Nixon Dec 1, 2018 ▶ 15:47
Disclosure
CEO Bernadette Nixon has barely increased sales quotas since joining Alfresco.
“So when I came in, I pegged the quotas, and I've only raised them ever so slightly since I came in.”
Bernadette Nixon Dec 1, 2018 ▶ 17:25
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