Last week I had the distinct pleasure of approving a press release announcing record Q1 results for Deem to kick off 2015. The release highlights measurable results from the quarter such as a 280% increase in quarterly bookings, 325% increase in average annual contract value (ACV), 64% reduction in customer acquisition costs (CAC) and 4,000 new business customers, but this only tells part of the story as to why this was such an important quarter for Deem and what the team here accomplished.
In January I sent a letter to all Deem shareholders outlining some of our plans for 2015 (you can read excerpts from that letter here). I promised a return to innovation, disruption and growth, relentless measurement, improvement and refinement of our key performance indicators, a predictable and deeply cross-functional operating cadence and a continuous process of educating our employees to ensure that everyone understands their roles and those of their teammates to ensure that we are a perfectly synchronized precision execution machine. While the numbers in the release and what they represent give nods to the majority of this, I am most proud of our execution of the last one:
Q1 was the ultimate team effort.
Last summer, once our recapitalization effort was complete and we had our growth funding secured, we set about the task of righting the ship and setting Deem back on the course we never should have abandoned. We renewed our investment in direct sales and demand generation activities with key hires across Sales, Product, DemandGen, Corporate Communications and Product Marketing teams. We analyzed the performance and makeup of every team and business unit, streamlining where we found inefficiencies and cutting some fat when it was necessary. We ensured that we had a crystal clear management structure and dramatically improved our internal communications structure so that everyone from contractors to executives understood what they were working on, how it affected those sitting at desks around them and how it fit into the company’s overall plans.
Q1 was also a team effort outside the walls of Deem. Our partners are some of our most valued relationships and a large portion of the 4,000 new business customers we’ve signed up since January 1 came from both new and revitalized channel partners, not just our own Sales and DemandGen activities. Deem would not be the company it is today without our partners and the trust they put in us every day to serve their own customers is humbling.
Q1 was a record quarter for Deem, the first step in living up to the promises I made in my shareholder letter, but it was only a first step. We took time out as a company last week to celebrate our accomplishments but only a few minutes, then everyone was back to work with the renewed sense of purpose and direction Deem was once known for and will be known for again.
Stay tuned, we’re just getting warmed up in 2015.