Gail goodman presentation

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Gail goodman presentation

  1. 1. Business, Funding, and Leadership Lessons from the Front Lines of Growth at Constant Contact Gail Goodman CEO, Constant Contact ggoodman@constantcontact.com (781) 472-8150
  2. 2. Sharing the Constant Contact Story Three Major Phases:  Finding the Customer / Market / Solution  Struggling with Go to Market / Repeatable Sales Model  Driving for Market Leadership
  3. 3. Sharing the Constant Contact Story Each Phase Presented Very Different:  Business Challenges  Funding and Cash Flow Challenges  Leadership Challenges: Evolving Role of the CEO
  4. 4. 1999 – 2002: Finding the Customer / Market / Solution Key Business Challenges:  Who is our target customer?  What problem are we solving for the them?  Can we make $$$ at $35 a month?
  5. 5. 1999 – 2002: Finding the Customer / Market / Solution Funding and Cash Flow  Raised $10m in May 2000 ~ $27m post-money valuation  Hired up to 50 employees  Got a great space (ping pong, air hockey, etc.)  Spent the cash  Needed more money in 2001!  Small inside round – learned about anti-dilution  Needed an outside round in November 2002  Complete cram-down recap – UGLY!!!  Revenue run rate =$2m, pre money of $2.5m
  6. 6. 1999 – 2002: Finding the Customer / Market / Solution Role of the CEO Eye on the customer / market / product  Need to believe in the business deep in your gut  Firm hand on the tiller – make directional changes but don’t swamp the ship Build the team  Find and motivate great people  Keep tight alignment – strategy to daily priorities Manage the investors  Great communication at the right level  Do not let them drive Do whatever is needed
  7. 7. Business Scorecard – October 2001 and 2002 October 2001 October 2002 New Customers per Month = 100 550 Cumulative Customers = 1,200 6,000 Monthly Run Rate = $42,000 $200,000
  8. 8. 2003 – 2005: Go to Market / Repeatable Sales Model Key Business Challenges  Conversion: Turning touches into customers  Barriers to customer success  The conversion funnel  Customer touch model  Surviving the spam challenge  Getting our mail delivered = new relationships / team  Policing our customers = new technology and process  Driving the regulatory solution = bringing the industry together
  9. 9. The Customer Funnel Channel Partners Direct Viral -Global -PPC -Referrals -Business -Regional -Powered By -Affiliate -Paid programsTrials Website Conversion Trial to PayingPaying ConversionReferrers Passionate, Satisfied Customers
  10. 10. 2003 – 2005 Go to Market / Repeatable Sales Model Funding and Cash Flow  Living on the cash flow line: recurring revenue growing ~$30K a month  Good news • Very predictable revenue = confidence to hire • Tight cash = tight prioritization  Challenges • Valuable projects not getting funded • Team really stretched
  11. 11. 2003 – 2005 Go to Market / Repeatable Sales Model Role of the CEO  Team Building / Transition  Dramatically changing view of key skills – Marketing; call center  Direction setting  Final vote on toughest trade-offs – with confidence and empathy  Need to move quickly on spam issues  Getting out of the details  Board communication
  12. 12. Business Scorecard – 2003 - 2005 October 2003 October 2005 New Customers per Month = 1,000 3,200 Cumulative Customers = 13,000 45,000 Monthly Run Rate = $400,000 $1,450,000
  13. 13. 2006 - Today: Driving for Market Leadership Key Business Challenges  Scaling our go-to-market formula  How to reach small businesses and get them to try email marketing / Constant Contact • Testing lots of new channels • Investing in market development  Understanding the economics  Revenue per customer per month  Customer lifetime  Cost of acquisition  Cost to support / host a customer
  14. 14. 2006 - Today: Driving for Market Leadership Funding and Cash Flow  2006 revenue plan = $27m ; cash balance = $2m  Ready to scale faster but need upfront $$ Customer Economics $800 $600 $400 $200 $0 -$200 -$400 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10Q11Q12 Q13Q14Q15  Final venture round – May 2006; post money > $100m
  15. 15. IPO – October 2007
  16. 16. 2006 - Today: Driving for Market Leadership Role of the CEO  Team Building (It never ends)  Driving team culture down into the organization (no silos)  Building the next level down  Chief of Culture  Maintaining customer focus and passion at scale  Communications, communications  Change Leader  Become a multi-product company  Growth through acquisitions  Manage Board and Investors
  17. 17. Business Scorecard 2008 Monthly Revenue (2004 – Q2 2008) 2003 2004 2005 2006 2007 Revenue $4.5m $8.1m $14.7m $27.5m $50.5m Y/Y Growth 131% 81% 82% 88% 83% Q2 2007 Q2 2007 1H 2008 1H 2007 Revenue $20.7m $11.4m $38.9m $21.1m Y/Y Growth 82% 84%Note: monthly numbers unaudited Please review the discussion on Page 2 of this presentation regarding the risks associated with forward- looking statements. Do not rely on this presentation to make investment decisions. 18
  18. 18. Questions?

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