The Best of the Old and the New
As the end of January approaches, 2011 takes on a sharper focus. That said, 2010 is still a very clear memory. In many ways, it is the perfect time to look ahead to what I expect will be a great year while the recollection of our spectacular 2010 is still fresh.
If I had to pick one of the most memorable moments for IntraLinks in 2010, it would have to be August 5, the day we became a public company. After more than six months of preparation and a three week road show, our IPO was both exhilarating and exhausting. It was a proud moment to ring the opening bell on the NYSE and then watch the first 10,000 shares of IntraLinks stock trade. Our IPO has brought with it some new roles and responsibilities for me including media coverage and having to become familiar with getting makeup at 5 a.m. for TV interviews!
The positive momentum for IntraLinks has continued since the IPO, with eight financial analysts putting a buy rating on IntraLinks stock and a very successful secondary public offering within four months of the IPO. Both the IPO and secondary offerings have had very positive impacts on IntraLinks, including the significant reduction of our debt which will allow us to invest more of our cash flow into the further growth of the business. The IPO has also allowed us to offer our employees participation in IntraLinks ownership. I’m very pleased that we instituted an IntraLinks employee stock purchase plan; more than 70% of our employees have chosen to participate in this generous benefit. Employees can put aside up to 10% of their salary to purchase IntraLinks stock at a 15% discount four times a year.
Of course, there are many other accomplishments I’d like to reflect on beyond our new status as a public company. For example, I’m particularly excited about the revenue growth in our Enterprise principal market, especially our Life Sciences use types. As of the end of Q3 2010, we achieved 110% revenue growth in Life Sciences compared to the same period in 2009. Moreover, we signed a top 10 global pharmaceutical company to a $3mm a year, three-year deal for global safety reporting, which is the largest deal in the company’s history. The enhanced solutions we brought to the market in 2010 around our safety document distribution and study startup/study conduct use types puts us in a great position to continue to grow our Life Sciences business going forward.
Overall, we achieved record revenue and profitability as of the end of Q3 2010. Our strong results are a direct reflection of growth in our Enterprise principal market, and market share gains in our global M&A business. The growth in our South American business in 2010 is also noteworthy on the back of establishing an IntraLinks office in Sao Paulo, Brazil, and working closely with our partner of four years, Planet Associados. In 2010 we brought some new capabilities to our customers including dashboard reporting, document viewers that don’t require downloadable plugins, improved upload/download performance, support for seven languages and configurable workflow. These new capabilities have enabled our customers to gain additional value from the use of the IntraLinks platform.
As for 2011, we’re determined to deliver value to all our new investors and I’m confident that we have a great strategy in place to make that happen. Much of our execution against our strategy will be a continuation of 2010, such as focusing on building further momentum in our Life Sciences business and taking additional M&A share from our competitors. We will continue to introduce new Enterprise use types including new horizontal solutions aimed at the needs of the General Counsel (GC) and Chief Financial Officer (CFO). Many GCs and CFOs are familiar with IntraLinks as a result of using our M&A use type. I’m excited to enable GCs and CFOs with IntraLinks solutions that allow them to address their everyday challenges when they need to exchange critical information outside the firewall in a secure, compliant and auditable manner.
In 2011, we will continue to drive our global growth outside of the U.S. Our long-term goal is to have half our revenue coming from outside non-U.S. geographies. We will sell our vertical and horizontal solutions to existing and new customers in geographies including South America, EMEA and APAC. We will make IntraLinks simpler, easier and faster to use by introducing new features like single sign-on for our Windows, SharePoint and Salesforce.com users. Additionally, we will introduce the second generation IntraLinks Courier offering targeted at ad-hoc managed file transfer and outside the firewall collaboration.
I’m excited about all our key initiatives and priorities for 2011 and am confident that by this time in 2012, IntraLinks will have another successful year to reflect on.