Zirra Spotlight On Lattice Engines

Lattice Engines provides SaaS based predictive solutions for marketing and sales to give full knowledge of their clients end customers. Lattice helps companies drive revenue and growth by providing their clients with increased opportunities for customer success such as prioritizing accounts, identifying new leads, and enhancing a customer’s value. Lattice Engines, Inc. was founded in 2006 and is based in San Mateo, California with additional offices in Austin, Boston, and New York City.

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Lattice Ratings By Zirra

Fundamentals: Lattice Engines claims it is the “#1 AI for B2B Marketing and Sales,” which is backed up by the Gartner report on predictive analytics focusing on marketing and sales. The confidence from this report and from the quality of the products and solutions Lattice offers has led the company to acquire big time customers such as Citrix, Dell, CDW, Hootsuite, PayPal, Qlik, Staples, EMC, SunTrust Bank, and HireVue, among many others. In April, 2016, Lattice reported a 300% growth compared to Q1 2015. The company said the release of new products and features attributed to the growth, however there are no reliable numbers for what Lattice is generating with respect to revenue. We can estimate, by multiplying the number of employees (135) by $125,000 and again by $200,000, a range of assumed revenue for Lattice. This calculation reveals the predicted revenue to be between $16.875M and $27M. With limited information we cannot safely say that their actual revenue falls in between these two extremes, but with the relevant clients they have acquired and their relative position with respect to the competition, it is likely that the actual revenue is closer to the upper end of the range, if not higher.

Competitive Position: There is massive competition in the predictive analytics market with many well financed companies boasting impressive client lists occupying the space. We identified nine direct competitors in the space, with many more companies being indirect competition offering a wider or narrower shelf of products and solutions. The main competition comes from InsideSales, EverString, Mintigo, and LeadSpace. InsideSales has raised $201M from Kleiner Perkins Caufield & Byers, Microsoft, Salesforce Ventures, and U.S. Venture Partners among others. The company has made two acquisitions, and boasts 621 employees on LinkedIn. EverString has 138 employees listed on LinkedIn and has raised $78.7M from eight investors including Lightspeed Venture Partners, IDG Ventures, and Sequoia Capital. Mintigo, with 69 employees, has raised $34M from Sequoia Capital, Maverick Ventures Israel, Giza Venture Capital, and Adams Street Partners. Finally LeadSpace, which currently has 95 employees, has raised $35M from Battery Ventures, Jerusalem Venture Partners, Technion Seed, and Vertex Ventures. We assume that Lattice is operating at the upper end of these competitors based on number of employees, past financing, and investors.

Market Forecast & Exit Indicators: The predictive analytics market has seen tremendous growth over the past five years. Last year alone, roughly $3.56 billion worth of capital was raised for companies operating in the business intelligence/analytics/performance management market. Forbes predicted, “the market for predictive analytics software is estimated to grow from approximately $415M in 2014 to $1.1B in 2019, attaining a 22% CAGR.” Analysts at Marketsandmarkets think, “the global predictive analytics market to grow from USD 2.74 Billion in 2015 to USD 9.20 Billion by 2020, at a Compound Annual Growth Rate (CAGR) of 27.4%.” These are of course only predictions and are subject to scrutiny, but with more companies adopting predictive analytics to increase business, we see no reason for these predictions to change.

Inside Scoops: In Q1 2016, Lattice claimed a 300% growth from Q1 2015. When we looked at the HR situation during that time we see the employee base of Lattice Engines is shrinking. In April, 2015, the total employee count was at 159, and at the same point in 2016, the total employee count was at 132. Nearly 30 employees were dropped from the total workforce, yet the company claimed it was there most successful quarter in company history. The company’s total employee count has dropped 11% from December 2014, to December 2016.

Professional & Customer Reviews: Performance reviews for Lattice Engines can be found in many places online, from users, as well as online publications. Some examples of the reviews for Lattice say, “by leveraging the predictive analytics platform we go beyond just the information we just collected or have already,” and, “We rolled out our UKI deployment in a few weeks and saw such great results that it convinced our US division to start deploying the product as well.” Reviewers go on to say, “Everyone who I have had contact with at Lattice seems genuinely interested in customer success and works hard to accommodate their customers’ requests.” There are some negative comments with some users saying, “they need to be a bit more flexible with their UI,” and, “The idea of the front end is that if you update the info it will show up right, but some charts wouldn’t update.” Overwhelmingly, the reviews for Lattice Engines are very positive and users are very happy with the products and support Lattice gives.

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Assaf Gilad

An ex-journalist from Calcalist, a leading business and tech news outlet in Israel, I'm now writing about startups for Zirra.com.