ExactTarget filed an S-1 last Wednesday, November 23, the first step towards an initial public offering (IPO) by the end of March, 2012.1 The company grew substantially over the past several years and is tracking a 55% growth rate in 2011. ExactTarget now services about 4,600 direct clients and reports $148 million in revenue through September 30, 2011. Congratulations to Scott Dorsey and his team for guiding the company to this point.
How will ExactTarget's IPO benefit CI Pros? The IPO can:
Provide additional capital for research and development. The funds ExactTarget will raise through the IPO will help transform the company from an email service provider (ESP) into a full-fledged marketing technology platform. Increased R&D will allow the company to evolve through organic development and acquisitions. Both moves will help it to fill out its cross-channel campaign management and Customer Intelligence offerings. CI Professionals at mid-to-large enterprises should expect to see the company move more aggressively to offer enhanced enterprise marketing capabilities.
Enhance attractiveness to partners. ExactTarget's IMH has yet to catch on with heavy hitters in analytics, offline channel management, and marketing resource or operations management.2 The quarterly and annual disclosure requirements on ExactTarget could help clarify the company's plans to potential partners and assuage concerns about future competition. Stronger partnerships will lead to additional IMH applications for CI Pros.