Dear Prospective Stockholder,
Ten years ago we founded Xactly with a vision to change the world of incentive compensation. We built the company on the simple belief that incentives are motivating forces that shape behaviors and inspire employee performance to achieve better business results. Incentives do not simply drive compensation outcomes, but align employee behaviors with company goals. In the U.S., businesses have paid more than $800 billion a year in sales compensation alone, representing one of the single largest investments for most companies. Over 90% of businesses in the U.S. use some form of variable pay to motivate their employees. We see businesses rapidly moving toward pay-for-performance cultures and we are passionate about helping them use best-in-class incentives that drive the highest levels of performance.
We have grown to over 190,000 subscribers, currently processing on average over 1.2 billion transactions a month, and our customers have paid over $16 billion in incentive payments in the last two calendar years using our service. Our scale, combined with our technology platform, allows us to derive commercial insights that inform our customers on best incentive practices. We use this information to create industry-specific insights to strategically help our customers incent their employees more effectively.
Key to our success are our core values — what we call C.A.R.E. We use these values to guide our behaviors and decisions every day. C.A.R.E. stands for:
- Customer Focus. Every day we strive to achieve total customer success. We are committed to delivering solutions and services that make our customers thrive. To succeed and earn the trust of our customers we must meet their expectations every single day with every interaction.
- Accountability. Accountability and integrity are at the core of everything we do. We are accountable for our actions to our customers, our partners, and to each other. We do not make commitments we do not intend to keep.
- Respect. We foster an environment of teamwork and mutual respect. We respect our peers, our customers and our partners. We respect diversity and openness.
- Excellence. We are passionate about innovation and quality. We strive to achieve excellence in our solutions, services, support and partnerships. We set high standards for excellence and aim to exceed them.
We have reached an important milestone in our history — the opportunity to share our future with you in the public market. We do not see going public as a destination, but simply another step in our journey. We have focused on building a business for the long run, making sure that each brick in the foundation is solid. The capital raised by going public will allow us to build upon this foundation.
We hope you will share in our journey.
Christopher W. Cabrera
Founder & Chief Executive Officer