A former Twitter executive is replacing Jacob Hsu as the CEO of Catalyte, a Baltimore company that offers job training apprenticeships to build the tech workforce.
Former Twitter Chief Customer Officer Matt Derella (NYSE: TWTR) is taking the reins from Hsu to spearhead Catalyte's continued expansion. Hsu has been the CEO of Catalyte since 2017, leading the company to grow from around 100 employees to over 650 employees.
“This is time to really scale [Catalyte] for hyper-growth,” Hsu said. “And Matt’s a transformational leader who's been there and done that before.”
Hsu said he wants to return to being an entrepreneur again and hopes to create more companies. He also wants to stay involved in job training programs that address the skills gap. Hsu plans to remain in Baltimore and will be on the Catalyte board.
Derella joined the Catalyte board in March, drawn to how the company provides job training and apprenticeships to low-income people seeking upward mobility through the technology industry.
“When I left Twitter, I knew I wanted to invest more of my time, in helping to provide access to economic opportunities for people,” Derella said in an interview.
Derella helped Twitter grow from a $50 million business to a $5 billion business during his nine-year tenure at the social media giant. He oversaw ad sales and handled content partnerships and customer service for Twitter's 200 million-plus users during his tenure there. He left Twitter in 2021, well before Elon Musk acquired the social media platform earlier this year. Derella declined to discuss Musk and the controversy surrounding his Twitter acquisition.
Derella said he plans to remain in New York City but will travel frequently to Baltimore and other Catalyte markets.
Catalyte uses a test to determine if someone has the personality and temperament to become a technology worker. Most of the people selected for an apprenticeship come from low-income jobs. The average person begins a Catalyte apprenticeship program earning $25,000 a year. The company claims that they can make an average $98,000 a year salary five years after graduation.
“The solution that Catalyte has built with the talent stream is exactly what I wish I had access to when I was the Chief Customer Officer at Twitter,” Derella said.
Though Catalyte primarily works with private sector clients such as Koch Industries, the company has been trying to make more inroads into the public sector. Catalyte this year won its largest contract with a government yet when it received part of a $15 million contract with Maryland that could produce between 90 and 100 new jobs in the state, Hsu said in June.
The company this year acquired the Agency Shop to create a new program focused on digital media jobs. Derella will eventually expand Catalyte’s focus into new sectors of the economy but plans to focus in the short term on tech jobs in software and digital media.
"The need for this type of solution is really felt across just about every sector of the economy and every company within it," Derella said. "So the challenge we'll have is narrowing down our focus."
Derella said many business leaders have similar experiences when trying to hire talent and believes the company can grow massively, even in a recession.
“The need for really amazing talent and making sure that you have it is still the No. 1 priority on pretty much every CEO’s list,” he said.
