In the year since Act-On Software raised $20 million from investors, the company has accomplished several goals and stayed on track for a product modernization designed to fuel growth and propel profits.
Since raising funds in 2021, the marketing automation software maker has increased headcount by about 20%, with big gains in product and engineering, said CEO Kate Johnson. Act-On employs 179 workers, with 109 based in its Portland headquarters.
It created offshore teams in Armenia and Argentina last year. This year, it built out its go-to-market teams with a new sales team selling to enterprise and middle market customers.
“The first two years would be investment,” she said of the roadmap following the inside round. “Year three would be back to generating and focus on profit.”
The top line is growing and she is happy with the trajectory, she said.
Act-on product update
The capital infusion helped Act-On modernize its product line. Its original offering was developed between 2009 and 2010.
Its product designers reworked the elements to provide more personality and feel like a modern application, Johnson said.
“It has a fun look and feel to it. It feels less like marketing automation and something you have to use,” she added.
The company also recently completed a security certification that will allow sales into larger companies that typically have vendor security requirements. The company is now working on a Health Insurance Portability and Accountability Act certification.
“We recognized as we moved up market, larger entities we are selling to now have expectations to have these certifications,” she said. Plus, once the company meets HIPAA requirements it will be able to sell to companies that deal with health data.
Economic uncertainty
The broader economy is decidedly different than when Act-On raised money in 2021. Looking ahead, Johnson said Act-On is in a position to help customers cutting marketing budgets do more with less. Plus, changes to the product have made it easier to use than those made by such larger competitors as Marketo.
“We automate. In theory we are providing leverage to teams to do more with less,” she said. “That can be helpful in this (kind of) cycle. We are keeping an eye on the climate.”
Act-On office life
As for its office strategy, the company’s downtown Portland spot is open. Team leaders work with employees depending on whether the workers are in the office or remote. While Johnson is in about three days a week, much of the workforce is in on Wednesdays for meetings and company lunch, she said.
“There is an aspect of creativity that happens more seamlessly when people spend time together,” she said. But, we understand everyone is different and had different needs.”
