Sales and Marketing Intelligence vendor DiscoverOrg crowed about its 2017 performance with growth in Annual Recurring Revenue (ARR), customers, staff, and data coverage. The firm, which acquired its top competitor RainKing in August, exceeded $130 million in ARR, above projections at the time of the acquisition. As subscription revenue is recognized over the life of the contract, 2017 revenue was likely between $110 and $120 million. DiscoverOrg, which has long stated that it is profitable and cash flow positive, also exceeded its profitability target for 2017, but did not provide details.
DiscoverOrg employment grew to more than 500 employees in Maryland, Washington, and Pennsylvania. Headcount increased by 50%. The additional staff allowed DiscoverOrg to grow the database and “deliver an unparalleled customer experience” through an expanded customer success team, redesigned customer training and certification programs, and user experience improvements to both platforms.
The customer base grew by more that 25% to greater than 4,000.
“After the acquisition of RainKing in August 2017, we made a commitment to our combined customer base that they would be able to access more high-quality data as we brought the businesses together,” said Henry Schuck, DiscoverOrg CEO. “In the five months since the acquisition, we more than doubled the datasets our customers access. This phenomenal increase means that our customers are more effective at finding, connecting, and selling to their target buyers.”
In 2017, DiscoverOrg launched SMB and HR datasets which provided a “larger addressable target market for DiscoverOrg and a more diversified customer base.” A few weeks ago, DiscoverOrg released its Legal and Compliance dataset.
Following the merger, the firm swiftly combined the RainKing and DiscoverOrg company and contact universes. DiscoverOrg contact coverage expanded 124% while the RainKing universe grew 127%. With respect to global companies, counts increased 82% to 130,000.
In 2018, DiscoverOrg plans to further grow its database and develop ”new tools and applications that make the data even more easily actionable for sales and marketing teams,” said Chief Growth Officer Katie Bullard. “Our roadmap is focused on enabling our customers to build an end-to-end pipeline engine with DiscoverOrg’s data as the foundation.”
While the coverage continues to increase, they have maintained their data research focus. “We repeatedly hear from sales and marketing organizations that the overwhelming abundance of data available today— mostly low-quality and unverified—actually makes it harder for them to do their job effectively,” said Bullard. “We have focused on delivering both the right data and the right tools to make sense of that data in a simple and practical package. The result is that our customers get to market faster, build more pipeline, and close deals more often than their competitors.”