It's probably too early to tell if Marketo's latest customer experience-driven offering will be a slam dunk.
But it isn't hurting the company.
On the heels of its latest major platform announcement -- its new customer engagement platform unveiled at its annual Marketo Nation Summit in April -- the San Mateo, Calif.-based marketing automation provider reported revenue growth this week for its second quarter.
“Across the board, we delivered a strong quarter as customers adopted our customer engagement platform and purchased new applications such as our Real Time Personalization product, which we released early in the quarter,” Phil Fernandez, chairman and CEO of Marketo, said in a statement. "From new customers in the business-to-consumer category such as Unilever and 3-Day Blinds, to major business-to-business leaders such as Cisco, Principal Funds and SGK, marketers are choosing our innovative solutions to build individual and personal long-term relationships with their customers.”
Marketo officials highlighted results from its second quarter:
- Revenue increased 60 percent year over year to $36 million
- Deferred revenue increased 74 percent year over year to $53.2 million
- Subscription dollar retention rate rose to an average of 105 percent
- Generated positive cash flow from operations of $3.6 million
- Customer count increased to 3,359
For the third quarter, Marketo expects to report revenue in the range of $36.5 to $37.5 million. For the full year 2014, Marketo foresees revenue in the range of $143 to $145 million. The latest Nasdaq report had Marketo trading at $27.69, up 3.44 percent.
Marketo's big vision has consistently been about multichannel relationship marketing, they have told CMSWire. The December acquisition of Insightera will advance that, officials said. The $19.5 million acquisition of the Israel-based real time personalization web and mobile platform came in a year when Marketo went public.
The intention is to combine Marketo’s behavioral data, targeting and multichannel engagement engine with Insightera’s capabilities. It is early here, too, to see how the Insightera integration will pan out.
Some believe Marketo is ripe for acquisition. Companies like SAP and NetSuite, which could benefit from Marketo's cloud computing offerings, have been mentioned as possible buyers.