Qualtrics Lands New $150 Million Funding for Data Insight Platform
If Qualtrics is just a name to you, it is a Utah-based specialist insight company well known for its survey engine that facilitates survey-based enterprise data collection. Its products enable users to find actionable data about every aspect of their company: employees, customers, markets and even processes within the business. It eliminates data solos that have so much bad press lately.
By designing such surveys to establish what people are thinking, action can be taken to leverage this knowledge to the advantage of the business. Insight technology provides a company with information on how employees, customers and even markets are thinking, information without which modern companies will find it difficult to operate effectively.
Insight Venture Partners Led Funding
This 12 year-old award-winning insight platform has recently closed a $150 million Series B funding round led by Insight Venture Partners. The finance is intended to support Qualtrics in further developing its product innovation and expansion into other countries. The funding also involved participation by the original investors in the company, Accel Partners and Sequoia Capital, who funded Qualtrics with $70 million in 2012.
It is now valued at over $1 billion, with 6,000 clients in over 75 countries providing over $100 million in revenue. Around half of Fortune 100 and 99% of the top 100 business schools are reliant on Qualtrics technology. The company is growing rapidly in triple digit figures and is seeking to expand further into the world market. This financing round will help the firm expand globally in addition to assisting new product research and development and the acquisition of new technology appropriate to its niche.
Qualtrics Dublin Office Expansion
Part of the international drive by Qualtrics is its Dublin office. This has expanded so fast that the original premises are now too small. From his target of 150 staff, the founder of the company, 34 year old Ryan Smith, has stated that it has already reached 55 and it could expand to 250 over the next 18 months. He commented that he refused an offer of $500 million for the company two years ago. This new funding will justify that decision and also help fund the Dublin expansion.
Qualtrics is a global company, and on any one day it will be hosting in excess of 2 million active surveys. It is because of this, and the value of such surveys to the businesses that require them, that the company is a world leader in its field. The company has not only remained profitable, but over the past 5 years has achieved a CAGR (compounded annual revenue growth rate) of greater that 90%. It is not easy to remain profitable with such a high rate of growth.
This is another major reason for the investment – to enable that rate of growth to continue without compromising the profitability of the firm. Sequoia Capital partner Bryan Schreier commented on the fact that Qualtrics enables businesses to succeed by delivering data quickly, making it actionable faster and so differentiating companies from their competitors.
Qualtrics Global Expansion Important
According to Smith he got practically no funding for five years until his company grossed $50 million. Having got so far, he has no intentions of exiting and is looking for more international expansion and an increase in both revenue and employees. When he started in 2002, the company focused on academia, which was a difficult market to break into. At that time the use of data was nowhere near as sophisticated as it is now, and the boom he has experienced was not predicted.
Ryan Smith believes his company to be doing well because so few firms know how to use ‘big data’ to its full potential in sales and marketing. This is where Qualtrics excels. He firmly believes that every organization in the world needs Qualtrics and his mission is to provide it. He is doing pretty well so far, and this $150 million Insight Venture Partners led series B funding round will give him the boost he needs to make his company grow even further.