San Jose, Calif.—February 14, 2018–– Xactly, a leading provider of cloud-based incentive solutions, today announced that it has acquired Obero, a growing sales performance management (SPM) company. With the acquisition, Xactly adds proven ASC 606 / IFRS 15, sales planning, and incentive management (ICM) capabilities to its market-leading enterprise SPM portfolio. Customers can now reduce risk, ensure compliance and maximize results with the industry’s most complete, enterprise-grade SPM suite, including sales and territory planning, quota management, incentive management, analytics, and big data intelligence.
“Xactly continues to enhance our strategic roadmap with the innovative technologies our customers need to compete and win in their respective markets,” said Christopher W. Cabrera, founder and CEO of Xactly Corporation. “The new revenue recognition standard has the potential to be a disruptive force for sales and finance alike. With this acquisition, we are accelerating our ability to help customers meet this challenge while creating a world-class sales organization driven by intelligent planning and execution across the sales lifecycle.”
This transaction comes on the heels of Xactly’s recent acquisition of AlignStar®, which added powerful territory management capabilities to the company’s SPM portfolio.
ASC 606 – Reducing Risk, Increasing Reward
The new ASC 606 / IFRS 15 revenue recognition standard that recently went into effect for public companies1 poses significant challenges for the majority of businesses who are still managing incentive compensation on spreadsheets. While commission expense accounting or the costs of obtaining a contract represents a small portion of the standard, it’s of enormous importance for businesses that pay commissions and need to be compliant.
Dana Therrien2 of Sirius Decisions noted, “If your company continues to calculate commission in spreadsheets, ASC 606 (IFRS 15) is going to be a problem!” He continued, “ASC 606 (IFRS 15) is the compelling event you’ve been waiting for to modernize your sales compensation management (SCM) platform.”
With the combined power of Xactly and Obero, customers have an end-to-end solution to capture, track, record, and report commission data at the level needed for capitalizing commission expenses in accordance with the new guidelines. In addition, enterprises will have the flexibility to report commission expenses based on their specific needs, ensure GAAP compliance, and seamlessly integrate commission data with existing financial systems.
Planning for Success
Effective sales planning is the critical first step in running a results-driven sales organization that aligns with corporate objectives. Combining Xactly’s planning solutions and prescriptive big data intelligence with Obero’s sales planning technology, organizations will have the ability to increase sales team potential by aligning market opportunity with accurate capacity planning, quota-setting, and forecasting.
Obero’s technology further complements Xactly AlignStar’s territory management capabilities; ensuring customers have the right staff, covering the right locations to capitalize on their market opportunity with fair, transparent and data-driven plans.
Managing Profitability, Delivering Accurate Results
Obero also brings additional ICM functionality to Xactly’s enterprise compensation solutions, including revenue, expense and profitability management. These capabilities are especially critical in managing commissions for companies with subscription-based and recurring revenue models. Workforce and capacity management features also help enterprises enhance financial management with accurate forecasting and planning for all compensation related costs.
- The ASC 606 revenue recognition standard went into effect for public U.S. companies on December 15, 2017 and will go into effect for private companies December 15, 2018. IFRS 15 went into effect January 1, 2018.
- Sirius Decisions, “What Sales Operations Needs to Know About ASC 606 (IFRS 15),” Dana Therrien
April 11, 2017
Xactly delivers a scalable, cloud-based enterprise platform for planning and incenting sales organizations, including sales quota and territory planning, incentive compensation management, and predictive analytics. Using this powerful sales performance management (SPM) portfolio, customers mitigate risk, accelerate sales performance, and increase business agility. Combined with Xactly Insights[TM], the industry’s only empirical big data platform, Xactly empowers companies with real-time compensation insights and benchmarking data that maximize the bottom line. With an open, standards-based architecture, Xactly seamlessly integrates within an enterprise’s existing infrastructure, with the ability to work with any ERP, CRM, or HCM application, while meeting the highest enterprise standards in security, reliability, and privacy.
©2018 Xactly Corporation. All rights reserved. Xactly, the Xactly logo, and “Inspire Performance” are registered trademarks or trademarks of Xactly Corporation in the United States and/or other countries. All other trademarks are the property of their respective owners.
Blanc & Otus Public Relations