The Exchanges

Q Um, why do the acquisition? I mean, why deal with self-serve at all?

A So, um, one of the biggest challenges with sales enablement is a lot of companies don't know the value. So they know they have to do this at some point, but it feels a lot like CRM. They're worried about the deployment, worried about the return, worried about, you know, usage. Um, so this just removes all that. So if you're five, you know, you can start with five users, even if you've got 10,000 long-term. Um, so it allows us to beat the competition. Companies like Chopin and Seismic, we can now come in and say, look, look, don't spend 18 months looking at this thing. Roll it out to five people. It's going to be great and start adding more users.

AI assessment note: “it allows us to beat the competition. Companies like Chopin and Seismic”

Q Okay. So, so break down the acquisition for me, right? When, how did the, how the conversation started? They reach out to you, you reach out to them?

A Yeah. We talked to them about two years ago. Um, at the time, you know, we hadn't done an acquisition. We now, we now have, so we, you know, we didn't have that muscle. Um, and, um, you know, we hadn't figured out some of our own stuff. So, you know, we kept in touch. Um, they were in a place where I just, you know, I talked to them and convinced them to, to merge themselves into media fly. So, um, um, and, um, you know, they're similar culture, very similar technical, you know, competencies. Um, it gives us a great, Uh, headquarters in the UK now too. Um, so, you know, international is a big piece of our business. And, um, so the combination of all those things just made it a natural, natural fit for both of us.

AI assessment note: “We talked to them about two years ago... I talked to them and convinced them”

Q Yep. How many acquisitions do you think you'll do over the next 12 months?

A Next 12 months. So I, um, I don't, I don't know if we'll do another one. The end, this fiscal year, our fiscal year ends in February. I think we have what we feel like we need to go beat show pad. Um, I, I, my guess is we'll do another acquisition next fiscal year. Um, um, potentially two. We've got a couple that are really interesting in mind, but, um, but haven't settled on, on kind of mutual valuation. We want to see ourselves, our valuation kind of pop a little bit here, um, with You know, the one we did last year, Alinean's working great. And then, you know, this one is already working well. Actually, where you, you know, we've started using it even before the deal closed to win deals away from the competitors.

AI assessment note: “my guess is we'll do another acquisition next fiscal year. Um, um, potentially two.”

Q Yeah, you were 8504 months ago. I mean, so that's a lot of growth. Have you raised additional capital to this or still twenty-eight million in equity?

A We raised, um, I think we raised a, well, kind of the beginning of our series C here. So we raised some additional convertible stuff that'll convert in. Um, so, um, I want to say it's probably about It's a good question. What it is. Um, I'm not sure if I'm not, I'm not gonna mention it, but, but we did start raising essentially convertible notes that will lead into our series C that'll come out. Um, you know, originally we were going to do that right about now, but this acquisition, we decided to, you know, give ourselves kind of two quarters after this acquisition to let it bake and kind of impact our valuation. And so we'll, we think we'll close this, our series C somewhere end of this calendar year, um, first couple months of the next.

AI assessment note: “we raised some additional convertible stuff that'll convert in”

Q Seismic. Interesting. Um, and so wait, so sorry, help me understand. How do you feel like this gives you an advantage over Showpad?

A So we can, we can go into companies and rather than going through a big enterprise purchase cycle, where there's a lot of risk and a lot of, you know, there's people worried about it, right? It's kind of like, you know, you go buy, you know, um, you know, any, you know, Gmail for your, for your business, you know, the ability to start at a no cost model or a very, you know, very inexpensive model removes a lot of the risk. Cause you, you know, you start using it and you realize shit, this thing really works. Um, so, um, so we, we have a big campaign that's launching in the next You know, the next 30 days, specifically around essentially allowing companies to get easy access to sales enablement, whereas before it wasn't this easy.

AI assessment note: “rather than going through a big enterprise purchase cycle... start at a no cost model”

Q All right. Um, now how are you changing your strategies around customer acquisition costs? Right? So again, when you came on earlier, you said, we're happy to spend a 160 grand to get a new customer paying nine grand a month, 19 month payback period. Where's that trending now?

A Yeah. So with the I present acquisition, it's, you know, it's going to be in flux here for the next couple of quarters. Um, but the, um, the, I think the payback period will be, um, you know, will be similar. I think it's probably in that 12 month range, um, you know, lifetime value. We make a lot of money on these folks. The big thing I think we're going to do is just win logos faster. And we're doing that with the, you know, with the value story solution that we acquired last year, the calculator stuff. Um, but with, you know, with this one, we can now go in and say, You know, here, try it for, you know, a 190 days, um, you know, just pay us a little bit of money, um, you know, blow it, load up with, with users. And so really what we're focused on now is acquiring customers, um, knowing that, you know, because we have such a strong retention and the solution's great, um, you know, it'll be good. So the next time we get on the next time we do this call, you know, in a couple of quarters, I'll have some better answers there.

AI assessment note: “I think the payback period will be, um, you know, will be similar. I think it's probably in that 12 month range”