The Evolution of Host Analytics
The biggest obstacle the company faced moving from 0-$10M was establishing product-market fit. When Kellogg joined, he implemented the second phase of growth and scale by creating a repeatable sales model, which was not an easy thing to do. Once that happened, the company raised capital and built out the salesforce. $25M was raised in late 2014 and the company has run on that fuel since.
Host Analytics serves the core EPM market and is self- funded, Kellogg said he is proud to run the business in a cash flow/break even way at this time.
Less than 10% of EPM sales are in the cloud, meaning 90% of sales are on-premise deals. Today, many companies ranging in size from $10M – $10B are not using EPM to manage finance processes. Further EPM itself has only 25% penetration, creating a tremendous opportunity.
As the gold standard for cloud-based technology, Host is positioned for success. It’s not surprising that finance is about 10 years behind sales in cloud adoption, and like all adoption, once a few companies start moving to the cloud, others will follow. CFOs think change is good and many have a “you go first” mentality. The good news is that Kellogg knows how the movie will end, with everyone moving to the cloud.
Talent and remaining competitive
Unlike many companies, Kellogg strives to make Host Analytics a “great place to work every day.” Because the company sells to CFOs and the office of finance, employees at Host are often from the field of finance, are professional and work well together as a team. Recruitment focuses on tapping networks and top recruitment firms to bring in great talent that is aligned to the core values and focused on customer success.
Kellogg is focused on maximizing the value of the company by centering 100% on organic growth in the core EPM market in North America.
Make sure to listen to the whole podcast and follow and listen to other podcasts by CFO Thought Leader.