STRATEGY UPDATE: Yesterday, DecideAct held its annual general meeting, where the company’s CEO, Flemming Videriksen, took stock of 2022 and gave an update on the strategy. In 2022, DecideAct passed DKK 10 million in ARR, and the year thus marked the end of the company's first 10x growth journey. This result was achieved in a year when SaaS companies in general were severely challenged. Now DecideAct aims to break even in 2024.
At the end of 2022, the growth in ARR was 37% gross and 14% net after churn. Like other SaaS companies, DecideAct was affected by many companies taking a step back and cutting their fixed costs. However, a retention rate of 92% is considered quite satisfactory and in line with the current norm for the category.
Although the year turned out lower-than-expected in ARR growth, 2022 nevertheless marked the end of DecideAct's first 10x growth journey. Furthermore, the keys to continuous growth were identified: The public sector as a potential game-changer, strategic partnerships for growth, and GenAI and integrations to ensure a leading position.
In all these areas, DecideAct is breaking through the ice. There is strong interest in the product, the pipeline is growing steadily, and inbound sales are starting to come in as a result of successful marketing efforts. The company will now further optimize operations with the aim of reaching break-even by 2024.
The current focus is on:
The keys to continuous growth have been identified
DecideAct is now beginning to see how its 2nd generation technology platform drives inbound pipeline and revenue through partners (focused on individual industries and geographies) and digital marketing (SEO, retargeting, etc.). As mentioned, 2022 marked the end of DecideAct's first 10x growth journey, and at the same time the keys to continuous growth were identified: The public sector as a potential game-changer, strategic partnerships for growth, and GenAI and integrations to ensure a leading position.
The three areas where the DecideAct will focus its execution:
Furthermore, DecideAct is focusing on English-speaking markets, as a strong position here will provide the best basis for scaling. Initially, the focus will be on maturing the Canadian market, which has been identified as a sweet spot for sales of DecideActs products based on multiple contract wins, a promising pipeline, and a well-functioning partner model. Reaching proof of concept in the Canadian market, DecideAct is looking into the possibilities to scale further.
Driving the business towards breaking even in 2024
With the comfort of knowing that the strategy is working, that the core team and technology are in place, that the customer/reference footprint is growing, and that partners and online presence are driving license sales and local implementation, DecideAct is ready and able to scale what works.
The company’s approach is and will be balanced. DecideAct is working towards breaking even in 2024, and with the current pipeline and an adjusted and streamlined cost level, it is expected that DecideAct will be able to deliver on this target. The mantra is to grow fast but with caution. To raise the necessary capital, no more, no less. This is done gradually to show that the formula for growing and scaling the business works, step by step.
Support and confidence from the investors
DecideAct stands today with a strengthened leadership team, a strengthened product, a more cohesive marketing/sales process, a larger pipeline of higher quality leads, better partnership models, and a greater focus on the geographies and verticals where the company gets the most out of its efforts, a tighter cost structure and has the greatest opportunity to make breakthroughs despite the continued turbulence in the world.
Product-wise, DecideAct remains second to none, and to ensure being in the best position to become a dominant player, the company must also be able to match the competition on the other critical parameters. It is therefore reassuring to note that investor support and confidence in DecideAct’s long-term ambition remain high.
Focus on delivering on the ARR
The company’s focus for 2023 is all about delivering on the ARR and preparing to deliver in the coming years. The short-term focus is on growing the customer base and working on additional strategic initiatives to strengthen growth and not at least drive the business towards break-even in 2024.
Entering new industries and verticals
In 2022, DecideAct signed contracts with several new customers. Entering new industries and verticals has proven that DecideAct is relevant to all companies and organizations, public or private, in all industries, geographies, and functional roles.
Several contracts won through partnerships
In 2022 DecideAct won several contracts in Canada and Denmark, many of them through a well-functioning partner model. A scalable foothold has been established in various verticals and based on successful cases from here, an influx of new customers in these verticals with a particular emphasis on the public sector is expected.
Expanding the pipeline through data-driven marketing
During 2022, DecideAct made some significant changes to the company’s marketing approach and is now building a solid foundation for a long-term marketing strategy that builds a scalable structure and supports DecideAct’s long-term growth plans. The biggest and most important change was to merge sales and marketing into one unit to further align operations and performance data between the two divisions. The pipeline has grown steadily, and DecideAct has more in the contracting phase than ever before.
Redesign of user interface and new unique features
In 2022, DecideAct further improved the technical platform and user interface. Together with the international design house e-Types DecideAct developed a brand-new design and user experience. In addition, new smart and highly requested features in the platform were implemented. DecideAct is already the most flexible platform for Strategy Execution Management on the market, and newly added initiative types and KPIs allow for even greater flexibility in strategic management.
Wheels turning – inbound sales
While market realities resulted in some obvious challenges, other wheels began to turn more smoothly. With strong (show)cases in public and/or infrastructure-related organizations, sales began to materialize with a much shorter lead time and often based on inbound leads—from partners or recommendations from existing customers or simply from SEO and retargeting. This shows that DecideAct has crossed the bridge from direct to indirect (inbound) sales generated by partners and digital marketing in established markets.
On par with or ahead of the competition
Finally, DecideAct has tested its wings in competition with other vendors specializing in SEM. This has served as confirmation that the SEM space is still in its early stages without a clear market leader, and the conclusion is that DecideAct's technology is highly competitive and that its progress with partners is on par with or ahead of the competition.
Since the IPO in December 2020, DecideAct has undergone a profound transformation from an aspiring start-up to an established player in the market where the goal is to become dominant. Step by step, the company has strengthened the foundations and likelihood of success in achieving this goal:
All this is good, but DecideAct can't be the best at everything for everyone. So, the future is about narrowing the focus further on customer segments where there is the most immediate match and the shortest path to a sale. With an ultra-sharp and targeted effort in selected areas, while cutting unrelated costs, DecideAct is now further streamlining and optimizing the execution of the company’s growth strategy.