Demand-side platform technology company [x+1] announced earlier this week that it's first quarter results for 2010 were strong in comparison to 2009 as "revenue increased 77 percent over the first quarter of 2009," according to the release.
[x+1] CEO John Nardone discussed the details of the company's first quarter results.
Among your Fortune 500 clientele that you reference in the release, what common traits do they share beyond the need for [x+1]'s services?
The most common trait is that these companies are increasingly taking a customer-centric view of their online marketing. Because of this they are becoming more data-driven – their data is incredibly valuable to them; it’s their life blood, and now they are finally able to use it online. They make decisions around their customer, and the data that can validate it.
In that you're working with Fortune 500 clients, do you see a growing opportunity to work directly with brands as opposed to going through agency partners?
Yes and no. All indications are that the next surge in digital marketing growth will be driven primarily by consumer behavior. All content is moving online, and with devices like iPads and smart phones enabling real-time, anywhere digital access, brand marketers are already preparing to take advantage of that. We will work directly with clients to enable the linkage and optimization of all of those touchpoints. But it will be the agency’s job to take advantage of that enablement and data to create compelling customer programs. We think agencies that can develop multi-touchpoint programs will lead the industry and make a lot of money. We want to enable them and their clients.
Will another round of venture capital make sense or can you scale off the profits of the business? In what areas will you scale next - more "feet on the street," for example?
We are cash flow positive, and do not have any current plans to raise more money. But there are so many opportunities for us to expand into that I would not rule out more capital in the future. We have the investor support to be opportunistic. If something makes sense, our investors will enable us to take advantage of it.
Is self-service part of the [x+1] offering? Do agencies and/or advertisers need self-service today given the complexity of the space and their own limited resources of time, people and money?
Yes, self service is a part of the [x+1] offering. Our view and vision is that there is a spectrum of user demand and we don’t see a one size fits all, but instead we see a shift to self service over time. There are many organizations that are ready for self service now, and we are ready to enable them.
By John Ebbert