CASE STUDY

Innovate

Company

ESTABLISHED

1999

HQ

USA & Germany

EMPLOYEES

Approx. 5000 employees; acquirer 100k+ employees

INDUSTRIES

B2B enterprise, telco/mobile operators

CUSTOMERS

1m+ global

SOLUTIONS

Communication as a Service (CaaS), Interconnect A2P/P2P SMS, MMS, IPX and mobile banking

ROUTE-TO-MARKET

30% direct sales; 70% channel sales

INVESTORS

Private equity, then NYSE-listed

Challenge

This business was stuck selling a commodity service to enterprise clients. It struggled to differentiate itself, resulting in margin erosion and a significant slump in growth. The goal was to revitalise its underperforming sales organisation, drive revenue growth and attract increased M&A interest.

Solution

Innovate to differentiate, then focus on top-line revenue growth. To deliver this, we:

Transformed the commercial strategy away from content and media providers toward a lucrative focus on enterprise, including finance and banking;
Built growth through acquisition and development of new technologies and services; including System and Method for Intelligent Routeback (patented), which initiated new business growth from a saturated customer base;
Delivered change management initiatives and innovations to improve gross margin and efficiencies;
Developed a reseller model to support net-new business through partners and peering agreements;
Built a GTM strategy and operating plan for a globalised telco business unit to deliver $1bn by 2020 (18% CAGR 5yr period).

What was achieved

Grew annual recurring revenue (ARR) from $40m to $350m
Improvement to net margin: 6-10% per annum
Underwent 3 M&As (within four years)