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Medallia Customers Increase Market Value 10X Faster Than S&P 500

Medallia’s customer experience management solutions power client growth at 10X S&P 500 since 2003 and 4X since 2008

MENLO PARK, Calif., December 8, 2009 – Medallia, the global leader in software-as-a-service Customer Experience Management (CEM) solutions, today announced its seventh consecutive year of revenue growth. Year-over-year, Medallia grew its revenue by 38% and significantly expanded its customer base —which includes Gold’s Gym, Hilton, Hyatt, and Sephora, among others—and maintained a 99 percent renewal rate in 2009.

Medallia’s SaaS software solutions and services teams help organizations drive change by monitoring customer experience delivery, empowering employees to act in response to those experiences, identifying the most successful actions and rolling them out organization-wide. Medallia unleashes a cycle of continuous improvement that increases revenues and profits while reinforcing customer satisfaction as a core corporate focus.

Medallia customers are dramatically outpacing the S&P 500 in market value growth. Since 2003, publicly-traded Medallia customers have increased their overall market capitalization by 224 percent compared to 22 percent for the S&P 500. In 2009, companies using Medallia managed the worst recession since 1929 and overwhelmingly out-performed the S&P 500 with overall market capitalization increasing by 64 percent, while the S&P 500 grew 18 percent.

“One of the key requirements for building a strong and lasting company is the ability to adapt to market conditions and the changing needs of customers better than competitors,” said Borge Hald, co-founder and CEO of Medallia. “The numbers we’re releasing today illustrate how Medallia’s technology and best practices help companies stay more attuned to the marketplace through close alignment with customers. The emphasis these market leaders place on customer dialogue and customer satisfaction at every level of their organizations helps them generate superior financial performance over sustained periods of time, including during today’s economic storm.”

Company Growth and Market Success

Medallia customers’ successes are reflected in the company’s own 38 percent year-over-year growth (2008/2009). This growth is fueled by expanded opportunities from Medallia’s loyal installed base of customers as well as a strong pipeline of new customers in diverse industries and markets. In perhaps the most demanding industry for customer service, hospitality, Medallia continues to maintain its leadership with more than 80 percent of top global hotel companies relying on the company’s platform for their guest satisfaction programs.

In 2009, Medallia significantly grew its customer base in retail, business-to-business and financial services. The number of retailers using Medallia grew 100 percent. To navigate one of the most challenging economies in recent memory, retailers sought to better understand and adapt to changing customer demands and purchasing priorities.

International Presence

With more than 50 percent of Medallia’s customers doing global deployments in 2009, Medallia invested more resources in its global support teams and opened a second international office in Toronto to complement the Oslo, Norway office it opened in 2006. The new office, which focuses on customer service, has provided additional value to multinational brand customers competing globally.

In addition to global deployments, Medallia is developing a strong global reputation and client base, with more than twenty-five percent of hospitality customers now based outside of North America.

Product Innovation

Medallia also introduced important new features in 2009 that enable broader use of CEM throughout companies and organizations. This fall, Medallia announced the industry’s first iPhone application. Just one week later, the company announced the Medallia Developer Network and the opening of its Application Programming Interface (API) to third party, independent software vendors (ISVs). These developments enhance developers’ and business executives’ ability to integrate customer experience data into every aspect of their organizations — to pull customer experience data into and out of key enterprise systems such as customer relationship management (CRM), financial and operational systems — and mostly, to put customer experience data into the hands of all employees.

Medallia’s new capabilities reinforce the company’s leadership in enterprise-class CEM technology. Medallia’s solutions, which are highly scalable and customizable, offer the industry’s most advanced reporting, analytics and collaboration capabilities. They have become the foundation on which customers depend for their company-wide — often global — deployments. In 2009, Medallia customers have created more than four hundred million survey pages.