Prospectus Summary
PROSPECTUS SUMMARY This summary highlights information contained in greater detail elsewhere in this prospectus. This summary is not complete and does not contain all of the information you should consider in making your investment decision. You should read the entire prospectus carefully before making an investment in our common stock. You should carefully consider, among other things, our consolidated financial statements and the related notes and the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in each case included elsewhere in this prospectus.RESPONSYS, INC.
Responsys is a leading provider of on-demand software that enables companies to engage in relationship marketing across the interactive channels that consumers are embracing today—email, mobile, social and the web. The Responsys Interact Suite, the core element of our solution, provides marketers with a broad and powerful set of integrated applications to create, execute, optimize and automate marketing campaigns across the key interactive channels. Our solution is comprised of our on-demand software and professional services, all focused on enabling the marketing success of our customers. We sell primarily through a direct sales force and target enterprise and larger mid-market companies that seek to implement more advanced marketing programs across interactive channels. For the years ended December 31, 2007, 2008 and 2009, our total revenue was $37.6 million, $50.1 million and $66.6 million, respectively, representing year-over-year growth of 33% in 2008 and 2009. For the nine months ended September 30, 2010, our total revenue was $63.4 million, representing 36% growth over the same period in the prior year. As of September 30, 2010, we had 266 customers of varied size across a wide variety of industries, including retail and consumer, travel, financial services and technology.
Marketing is undergoing a significant shift as rapid adoption of digital technology has dramatically changed consumer behavior. Interactive marketing channels, including email, mobile, social and the web, are rapidly supplanting traditional media channels as consumers’ primary source of entertainment and information. This has created both an opportunity and an imperative for companies to market to their customers by engaging them across all of these interactive channels. According to Forrester Research, Inc., or Forrester, U.S. spending on interactive marketing is expected to increase to nearly $55 billion and represent 21% of all marketing spending by 2014, as marketers shift dollars away from traditional media toward interactive channels. U.S. interactive marketing spend on email, mobile and social media, the primary interactive channels currently used for relationship marketing, is expected to grow from $2.4 billion in 2009 to nearly $6.5 billion by 2014, representing a compound annual growth rate of 22%.
Interactive channels enable marketers to substantially improve the effectiveness of their relationship marketing efforts by executing more relevant and timely campaigns to their customers and known prospects. However, this shift to interactive marketing has also caused the execution of marketing campaigns to become increasingly complex, real-time and dependent on technology. We believe that for marketers to capture the opportunity provided by interactive channels, they need a solution built for relationship marketing across those interactive channels. Our Interact Suite is a software-as-a-service, or SaaS, platform that empowers relationship marketers to effectively execute permission-based campaigns across the key interactive channels. It is comprised of multiple tightly integrated applications, built on an open and flexible platform, which enables our customers to integrate and leverage data from multiple sources to ensure relevant and timely marketing.
Our Solution
Our solution consists of our on-demand software and professional services. We complement our on-demand software with a broad array of professional services that are designed to drive marketing success for our customers. Our experienced team brings region- and vertical-specific methodologies and best practices to help our customers accelerate the implementation and execution of their cross-channel marketing efforts, increase their revenue from interactive channels and improve their return on overall marketing spend. Together, our on-demand software and professional services provide the technology and expertise to enable our customers to achieve success in their interactive marketing efforts.
The key benefits of our solution include:
Our Interact Suite is comprised of several tightly integrated applications that enable the design, management and automation of tasks and processes for executing email and cross-channel marketing campaigns, including:
We also offer key integration components in the Responsys Interact Suite that enable enhanced data and application automation, including:
Our Growth Strategy
The key elements of our growth strategy are:
Expand our relationships with existing customers. As our offerings become increasingly integral to our customers’ marketing success, we believe that we gain a variety of opportunities to grow our business with them.
Expand our customer base. We believe that many organizations are still in the early stages of adopting relationship marketing across interactive channels, which provides us with a significant opportunity to acquire new customers.
Develop new capabilities and channels. We believe there are many additional opportunities for growth beyond our current footprint.
Summary Risk Factors
Our business is subject to numerous risks described in the section entitled “Risk Factors” and elsewhere in this prospectus. You should carefully consider these risks before making an investment. Some of these risks include:
Corporate Information
We were incorporated in the state of California in 1998. Prior to the completion of this offering, we plan to reincorporate in the state of Delaware. Unless expressly indicated or the context requires otherwise, the terms “Responsys,” “company,” “we,” “us” and “our” in this prospectus refer to Responsys, Inc., a Delaware corporation or, as applicable, its predecessor in California and, where appropriate, its wholly-owned subsidiaries. Our principal executive offices are located at 900 Cherry Avenue, 5th Floor, San Bruno, California 94066, and our telephone number is (650) 745-1700. Our website address is www.responsys.com. The information on, or that can be accessed through, our website is not part of this prospectus.
Responsys, the Responsys logo, Responsys Interact, Interact Campaign, Interact Program, Interact Team, Interact Insight, Interact Connect and Interact API are registered or common law trademarks, service marks, or trade names of Responsys, Inc. Other trademarks, service marks, or trade names appearing in this prospectus are the property of their respective owners.