If a US public company, look at its 10-K (annual report). Firms generally discuss their competitors. You can locate the 10-K on a company’s investor site, through sales intelligence vendors, or free Edgar sites.
If a private company, look at Owler, a free site (See below). This is crowdsourced so may include firms that aren’t true competitors.
Look at sales intelligence services such as D&B Hoovers or InsideView. Hoover’s competitors are editorially generated and include top three flags (see below)
Within IT, look at Forrester Wave reports. Another option is technology category searches in PE/VC databases such as DataFox, Crunchbase, Pitchbook, or CB Insights. Keep in mind that companies within the same segment may not be competitors, but partners, customers, etc.
Many industries have industry specific market research that includes competitors. A few general market research firms also provide competitors (e.g. MarketLine, Euromonitor, Global Data, and Freedonia). Top Competitors are also available in IBISWorld, Vertical IQ, and First Research.
Zoominfo and a few other vendors identify similar companies based upon proximity in articles. This finds competitors, but also customers and partners so should be carefully reviewed.
For new technologies or industries, D&B Hoovers offers Conceptual Search which identify companies associated with key phrases (e.g. Marcellus Shale, Obamacare). This is more of an associated companies list and will identify firms in a topical ecosystem. For example, “Harry Potter” identifies studios, publishers, toy makers, theme parks, and thematic tours. (See example below of conceptual search on Marcellus Shale). Conceptual Search lists may be refined by standard prospecting filters such as industry, geography, and size.
If none of these work, use peer list searches (industry code lists) or keyword searches in sales intelligence vendors.
The acquisition moves DiscoverOrg into the number two position in the Sales and Marketing Intelligence space with $230 million in joint revenues. Only LinkedIn Sales Navigator has a larger market share.
leaked the deal on January 25th indicating that “Zebra” was a direct
competitor. According to Debtwire, DiscoverOrg was “pitching its unrated
buyout loan package on strong recent growth and a story that the whole will be
greater than the sum of its parts, said five buysiders familiar with the
deal. Meanwhile, levering up the capital structure draws attention to the
borrower’s ability to meet synergy projections – which could crimp its free
cash flow, especially amid an ambitious technology integration plan, they
indicated that the acquisition was priced at $800 million, a three-fold
increase from Great Hill’s summer 2017 acquisition price of $240 million for
Zoominfo. Debtwire also indicated an FY18 management adjusted EBITDA of
$62.7 million for DiscoverOrg and $17.7 for Zoominfo.
Revenue growth for both companies is strong. DiscoverOrg has made the Inc. 5000 list for eight straight years and Zoominfo for the past four years. Debtwire indicated revenue growth figures of 26% and 30% over the past two years for DiscoverOrg with revenue hitting $152 million in 2018. Zoominfo has grown at an even faster pace over the past two years with growth rates of 63% and 44%. Thus, Zoominfo revenue grew from $39 million in 2016 to $91 million last year.
Based on the
Debtwire revenue numbers for 2018 and historical revenue figures from the Inc.
5000 list, DiscoverOrg had a seven-year CAGR of 61% and Zoominfo of 34%. Zoominfo’s
growth rate is mostly organic while DiscoverOrg’s organic seven-year CAGR,
after adjusting for RainKing revenue, is around 53%.
firms are strongly complementary. Zoominfo provides the deepest set of
B2B emails and direct dials with content mined from email signature
blocks. DiscoverOrg offers deep technology profiles (technographics and
project plans) alongside human verified bios (skills, responsibilities,
education, work histories, emails, direct dials, and social links), org charts,
and company profiles. DiscoverOrg’s human verification supports a 95%
data quality SLA for its contacts. Zoominfo’s Datanyze acquisition
provides DiscoverOrg with additional NLP tools for determining products and
vendors alongside market share analytics tools for marketing and competitive
data is rapidly changing and your data platforms must be built to adapt,” said
Zoominfo CEO Derek Schoettle in September. “ZoomInfo has the largest,
most complete data set of companies and contacts and a goal to enable our
customers to automate, process, curate, and present the data on-demand and in
real-time. Delivering industry-leading technographics, the Datanyze technology
will be a significant addition to help us deliver the right data, at the right
time, to the right person.”
deep, research-verified, actionable insights coming together with ZoomInfo’s
comprehensive coverage of 100M business professionals is an unrivaled combo,”
said the firm. “We each employ different, but highly advanced
technologies and tools to gather, cleanse, and maintain at an unparalleled
“To effectively capitalize on growth opportunities, companies of all sizes need accurate firmographic, technographic, contact, and intent data. Combined, DiscoverOrg and ZoomInfo deliver the trifecta: B2B data of the highest quality, quantity, and depth.”
DiscoverOrg CEO Henry Schuck
past few years, sales intelligence has moved from a standalone browser research
service for sales reps to an integrated workflow solution tied into CRMs,
Marketing Automation Platforms, Sales Engagement Platforms, Chrome Browsers,
and email. DiscoverOrg has been at the forefront of these integrations
with a broad set of platform connectors. CEO Henry Schuck emphasized
these workflow tools during the announcement. “High-quality data is the
fundamental go-to-market requirement for growth. In the near future, CRM and
marketing automation systems will be defined not by their empty-box
capabilities – but by the data that is housed inside them.”
complementary, the combined companies remain weak with respect to deep company
profiles. DiscoverOrg recently added family trees, but they are to the
subsidiary level, not branches. They also lack public company financials,
US and UK filings, SWOTs, and industry research.
DiscoverOrg acquired rival RainKing in August 2017, CEO Henry Schuck stated the
following goal, “The path to rapid revenue growth is paved with highly
accurate, actionable, and predictive sales and marketing data, and the
combination of RainKing and DiscoverOrg means that our joint customer base has
access to an extraordinary portfolio of data, contextual buying insights, and
predictive intelligence. We are building a company that is to sales and
marketing intelligence what Salesforce is to CRM.”
vision was updated today:
“Every sales and marketing team will have a go-to-market operating system that identifies the prospects that should be engaged every day, week, and month based on buying signals and intent data collected in a multitude of different ways. Even better, they have deep insights on the buyers who are making the purchase decisions with accurate contact, org chart, technographic, and firmographic data. It’s all at their fingertips and it’s all served to them dynamically – wherever they are working.”
stated that support, service, and sales for all products will continue.
Both platforms will be sold for the next six to twelve months “with highly
coordinated sales and marketing efforts to ensure customers realize the most
value from the platform(s) that best serve their needs.” In March, joint
customers will have a light integration between the two platforms followed
quickly by DiscoverOrg customer access to Zoominfo company and contact data.
combine the best of both platforms over the next year, customers will have the
best, bar-none, B2B intelligence platform -the highest quality data with the
broadest coverage and deepest actionable insights,” said the firm.
company has 15,000 active customers and 120,000 active users, with the Zoominfo
acquisition trebling the customer count.
stated that there are no plans to shutter any of Zoominfo’s locations and that
hiring will continue for all Zoominfo offices. Zoominfo has more than
doubled its staff over the past year with headcount spread over six locations:
Waltham (MA), San Mateo (CA), Grand Rapid (MI), St Petersburg (Russia), Kazan
(Russia), and Ra’anana (Israel). Zoominfo moved into a new headquarters
location in Waltham, MA just last month. The lease provides space for up
to 450 employees. Globally, DiscoverOrg has over 1,000 employees.
DiscoverOrg’s investors include TA Associates, The Carlyle Group, and 22C Capital.
Zoominfo announced that it acquired both San Mateo-based Datanyze and Israeli firm Y Labs last month. Datanyze provides Zoominfo with a deep set of technographics and segmentation visualization tools to complement Zoominfo’s company and contact database. Y Labs, which is moving into Zoominfo’s recently opened office in Ra’anana, Israel, will operate under the name ZoomInfo Israel Limited (Ltd.). Y Labs will supplement Zoominfo’s product development and security operations.
“I am thrilled to be joining ZoomInfo at this time of tremendous growth in the organization,” said Datanyze CEO Ilya Semin. “Bringing together our two organizations is a perfect union, combining Datanyze’s real-time technographic data with ZoomInfo’s unparalleled – and the industry’s most current – company and contact data.”
Semin is joining Zoominfo as the Vice President of Data.
Both vendors heavily employ natural-language processing for building their respective datasets. Zoominfo also mines signature blocks of its voluntary community members. Zoominfo has some technographic intelligence available to its customers, but Datanyze provides a significantly more mature dataset and technographic capabilities. Datanyze has captured technographic intelligence for 35 million companies.
“Business data is rapidly changing and your data platforms must be built to adapt,” said Zoominfo CEO Derek Schoettle. “ZoomInfo has the largest, most complete data set of companies and contacts and a goal to enable our customers to automate, process, curate, and present the data on-demand and in real-time. Delivering industry-leading technographics, the Datanyze technology will be a significant addition to help us deliver the right data, at the right time, to the right person.”
Schoettle, who joined the company in July, just completed 50 customer discussions over five weeks providing him with insights to both Zoominfo’s strengths and gaps.
“The (customer) advocacy for the company and the product is phenomenal,” Schoettle said. “The second part of our effort now is to round out the data factory we have, looking at all the right data sources, the data quality, and present it to the right end users.”
The acquisition follows a blowout August with billings 53% above July’s numbers. August billing were up 71% year-over-year.
“The growth we experienced in August will continue as we build the industry’s most robust and frequently updated platform for sales and marketing teams thirsting for real-time, on-demand customer data,” said Schoettle. “As we look ahead, we see significant potential to create a world-class development capability in Israel that will allow us to harness leading artificial intelligence and security capabilities which translates into smarter services for our 7,500-plus customers. The rate and pace of change in the data space requires a commitment to innovation and we are thrilled to have this team become part of ZoomInfo.”
Zoominfo also announced the hiring of Brad Noble as VP of Product Design. Noble previously led product design and advocacy teams at IBM Watson, Cloudant, Boathouse Group and MullenLowe.
Datanyze customers will continue to receive support for the Datanyze product offering. Terms of the two deals were not disclosed. Nathan Latka’s database of SaaS vendors listed Datanyze’s 2016 revenue at $6 million, up 50% year-over-year.
Zoominfo has more than doubled its staff over the past year. They are stratified over six locations: Waltham (MA), San Mateo (CA), Grand Rapid (MI), St Petersburg (Russia), Kazan (Russia), and Ra’anana. The Waltham headquarters office is relocating at the end of the year to Constant Contact’s old site along I-128.
Technographics, which were a relatively small segment five years ago, have grown rapidly and are in the midst of a consolidation phase. Three years ago, DiscoverOrg acquired iProfile and then picked up RainKing last August. This week, HG Data acquired London-based Pivotal iQ, Zoominfo acquired Datanyze, and DiscoverOrg rebranded.
Both acquisitions expand the scope of coverage of the acquiring firms. Zoominfo had limited technographics prior to the Datanyze deal and now holds a deeper set of technographics along with analytics and visualization tools. HG Data has expanded beyond product / vendor data to include contract and spend intelligence.
By my research, the IT sub-sector represents 18% of the sales intelligence space with DiscoverOrg in the pole position. Overall, the IT sub-sector is $170 million and it is growing faster than the overall Sales Intelligence market.
“The recent acquisition activity shows the value and appetite for technology data enrichment,” said HG Data VP of Product and Marketing Kineon Walker. “This consolidation cycle is happening as new companies continue to enter the space. As technology data continues to evolve and become more valuable to businesses of all sizes, we expect this sector to continue to grow and flourish.”
What we are seeing is the transition of technographic intelligence from a delighter five years ago to a must have content set for sales and marketing intelligence products. Ten years ago, it was contacts and SMBs that made this transition. Eight years ago it was sales triggers. Four years ago it was emails and direct dials. Now it is technographics.
Next up it may be third-party intent data and the integration of first-party visitor intelligence into more sophisticated lead scoring and prioritization.
I will be covering both acquisitions over the next few days.
North American Sales Intelligence Market Sizing Model (Excel)
The 2017 Market Size of North American Sales Intelligence Vendors. Includes vendor product features, market share, and notes. GZ Consulting Copyright 2018.
For the past few years, I have been sizing the North American Sales Intelligence Market. This is the largest of the markets as Europe and AsiaPac are more fragmented (the UK is the only other mature market).
In 2017, I estimated the market at $950 million with LinkedIn Sales Navigator as the top vendor. While new firms continue to enter, the top four vendors earn two of every three dollars in the industry. The top four concentration increased 7% last year, mostly due to the acquisitions of Avention and RainKing.
The industry grew 17% over the past year with the majority of this growth being captured by LinkedIn Sales Navigator, DiscoverOrg, and Zoominfo. TechTarget, which was off my radar in 2016, has also seen rapid growth in 2017 and 2018.
DiscoverOrg acquired RainKing at the end of August 2017 so two-thirds of its revenue was recognized as RainKing and one-third as part of DiscoverOrg. Combined, the two firms earned around $118 million least year with DiscoverOrg ending the year with a $130 million plus ARR. DiscoverOrg raked in two of every three dollars within the technology sales intelligence sub-segment.
LinkedIn holds a nearly 30% market share. It has grown rapidly while remaining under the radar of its peers as it is often used as a complementary service to other sales and marketing intelligence services.
Data.com’s 2017 revenue was stable but Dun & Bradstreet forecasted a 30% drop in 2018 (D&B is a revenue share partner on the service). I anticipate that much of this revenue will shift to other vendors in 2018 and 2019. Dun & Bradstreet is in a strong position to take much of this share, but other vendors are pushing hard to acquire Data.com clients.
Zoominfo was ahead of the other sales intelligence vendors in recognizing the value of adding marketing functionality alongside their sales tools. This has put them in a strong position for data services. They also built the deepest set of global contacts with emails and direct dials and were early to build out connectors (CRM, MAP, Sales Engagement, and Chrome).
I am making my market model available for license (See PayPal button at top) as an Excel spreadsheet. It includes revenue numbers by company along with market share, key features, and notes.
Several sales and marketing intelligence firms made the 2018 Inc. 5000 list including DiscoverOrg, Zoominfo, and FullContact. Signaling difficulties in the predictive analytics space, no firms from that category made the Inc. 5000 list.
Inc. magazine lists the top 5,000 US firms based upon three-year revenue growth rates. Eligible firms must have at least $100,000 in 2014 revenue and $2 million by 2017.
Zoominfo made the list for the fourth consecutive year, with revenue reaching $59.4 million and a three-year CAGR of 45%. Zoominfo grew its headcount by 50% between July 2017 and July 2018 and raised its customer base to 8,000 enterprise customers.
“The Inc. 5000 is the measuring stick for successful, high-growth, private companies,” said new Zoominfo CEO Derek Schoettle. “Since joining ZoomInfo earlier this summer, I’ve seen the tech innovation and the business demand for trustworthy customer data that makes me confident that ZoomInfo will continue to make this prestigious list for years to come.”
Zoominfo added over 100 staff and 2,000 customers in the past year. At their June Growth Acceleration Summit, VP of Corporate Development Phil Garlick attributed the firm’s success to hard work, teamwork, sweat, and tears.
SalesLoft made the list for the first time as the firm caught fire after launching their sales engagement platform a few years ago. Revenue grew at a 77% three-year CAGR to $13 million in 2017. SalesLoft also placed seventh on the most recent North American Deloitte Fast 500. The Atlanta-based firm recently acquired NoteNinja to integrate its meeting intelligence software into the broader set of SalesLoft sales engagement capabilities.
CEO Kyle Porter is “excited” to “empower” his customers in delivering “a better sales experience. Buyers around the world are recognizing the differentiated benefits of purchasing products and solutions from sellers who use SalesLoft.”
Other first-timers were identity resolution vendor FullContact (76% three-year CAGR to $14.0 million) and data hygiene and enrichment vendor Stirista (23% three-year CAGR to 5.0 million).
“Marketers, product professionals, and data analysts have had a lot of success using FullContact to enrich the data that exists in their CRM, marketing automation, and other databases,” said Scott Axcell, VP of Marketing at FullContact. “From audience insights to customer care, there is no shortage of use cases for accurate, enriched customer data.”
FullContact acquired Mattermark and its company and event database last December to complement the FullContact people dataset.
While Madison Logic once again made the list, their growth stalled with revenue declining $200,000 last year to $54.2 million. Their three-year CAGR was 27%.
“We achieved this honor through the strength of our team and success of our customers. Our platform, ActivateABM, helps the most innovative global companies accelerate growth by converting top prospects into customers. By integrating directly into the martech stack, we can deliver solutions that are simple, strategic and entirely ROI-focused,” said Tom O’Regan, Madison Logic’s CEO. “We are thrilled to be recognized for the sixth time and proud of the momentum we’ve achieved on our mission to make the B2B marketer the driving force for growth and change in the enterprise.”
CreditSafe USA made the list for the second time, growing revenue to $13.3 million last year with a three-year CAGR of 52%. However, most of the growth was in the first two years with 2017 revenue only growing $500,000. The firm has over 100,000 subscription customers, 10,000 in the United States.
“Our team is extremely humbled to be included in such an elite group of high-growth companies,” said Matthew Debbage, CEO of Creditsafe USA and Asia. “When we established here six years ago, there was one large entrenched player in the business credit space in the US, so we felt our success was far from a sure thing. This recognition really helps put our hard work into perspective.”
“Being the younger, more nimble and tech-friendly player in the space has given many advantages as we strive to provide exceptional value to our customers,” continued Debbage. “We know that if are going to disrupt the industry, then we’d need to out-hustle our competition each and every day and really want to thank all those customers who’ve taken a chance on us.”
CreditSafe primarily provides credit data in the US, although they did enter the US and UK sales intelligence market a few years ago with Sales Joe. CreditSafe financials and filings are at the core of several European product lines including DueDil.
CreditSafe maintains offices in eight European countries, Japan, and the United States. The company serves the credit, collections, sales, marketing, and compliance functions.
Private company profiler Pitchbook is no longer eligible for the list as they were acquired by Morningstar, but the firm disclosed a 60% CAGR since 2009. They have grown their user base from 11,000 to 18,000 since the end of 2017. Since the beginning of the year, Pitchbook has grown from “just over” 600 employees to 908.
Finally, Pure Incubation made the list for the fifth year in a row posting a 43% three-year CAGR on $20 million in revenue. The Massachusetts demand generation firm offers data and marketing services for the medical and technology sectors. Products include PureB2B (Content Syndication and Intent Marketing), PureMed (Healthcare Providers and Facilities Database), ProspectOne (B2B Intelligence and Data Services), and Demand Science (Philippines-based Back Office Marketing, HR, Seles Development and Engineering Services).
Pure Incubation’s consistent growth “is another testament that we are building a strategically relevant and innovative company in the demand generation space,” said Chairman Barry Harrigan. “Pure Incubation’s continued placement on the list is not something we take for granted and we are going to keep pushing to appear again in 2019.”
At last month’s Growth Acceleration Summit, ZoomInfo previewed a lead scoring feature which will be available later this year. Users will build models for ideal customers and the associated scores will be displayed across the product including in lists, profiles, and enriched web leads. The goal is to “customize ZoomInfo to each and every one of you,” said CMO Hila Nir at her Product Roadmap presentation. Customization also includes routing and territory management. ZoomInfo will continue to offer tools which foster sales and marketing alignment and look to “take noise out of sales and marketing organizations.”
The company hinted at email templating and territory dashboards, but did not provide details on these future product concepts beyond conference screenshots. Email templating is most commonly found in Sales Engagement services such as Outreach, SalesLoft, and ConnectLeader.
While Zoominfo has not released financials, Garlick indicated that the firm had a strong 2017 marked by “really fast revenue growth.” The firm also added over 100 staff and 2,000 customers in the past year. He attributed the firm’s success to hard work, teamwork, sweat, and tears.
ZoomInfo pricing is a hybrid between number of seats and number of records licensed. While the firm used to be transparent about its pricing, they stopped posting such details a few years ago.