Intacct’s financial results attributed to customer additions, competitor instability
Intacct is coming off a record quarter, with 45 percent growth in Q2 2017.
“Intacct has pretty consistently been performing at about a 40 percent growth rate,” Intacct CEO Rob Reid told Accounting Today. “So 45 percent is a step up. It’s a real testament to all the work we’ve been doing and focusing on.”
The growth this past quarter was mainly driven by customer additions and an increase in Intacct’s average deal size. The cloud accounting company also introduced new contract and revenue management applications last year to address the new, upcoming ASC 606 and IFRS 15 revenue recognition guidelines.
“People understand they have to make this change to ASC 606,” Reid said. “But also they’re stepping back and saying, how can we make the contract process more effective and more efficient? Our contracts applications have been driven more by customers that want to improve their processes rather than customers reacting to upcoming changing standards. We thought the requirement change would be what kicked things off with these customers, but it really was that customers wanted to improve processes.”
Also driving growth, Reid said, is the addition of more value added resellers, as well as current resellers expanding their business. For instance, Intacct’s long term firm partner CliftonLarsonAllen, based mainly on the East Coast and Midwest, and Armanino, based on the West Coast, have played a big part in increasing Intacct’s reach as they themselves grow. Another partner, Houston-based firm AcctTwo, was founded in 2010, but today has 55 people at its firm.
Reid added that “internal change” inside Intacct’s competitors also helped fuel its growth over time. He cited the July 2016 acquisition of NetSuite by Oracle, as well as founder Jeremy Roche’s departure from FinancialForce, which is now headed by Tod Nielson, formerly of SalesForce.
“Major changes are going on at the top of our direct competitors’ organizations,” Reid said. “That always creates some disruption, and they have to reevaluate what they’re doing and why they’re doing it. The executive staff at Intacct are going on close to 10 years. We have an integrated team with a common vision.”