$75 Million Funding Increase for Software Co. Performio

Performio, an Irvine-based company whose software automates sales commission tracking, plans to bolster its own sales staff following a $75 million investment, one of the largest local funding deals for a private technology company this year.

The investment, led by Baltimore-based JMI Equity, is expected to help Performio increase its staff and spur its global expansion, officials say.

“The $75 million will allow us to hire more people. We will be hiring more sales and marketing to expand more aggressively in the United States, Europe and Asia-Pacific,” Performio chief executive Grayson Morris told The Business Journal on June 29.

The company currently has 115 employees, of which approximately 20-25 are based in Orange County. The company said it more than doubled its workforce in 2021.

Morris, who has been with the company since 2019, said the company plans to have around 150 people on staff by the end of the year.

IPO experience

In addition to sales positions, the company will also hire more product engineers, as well as service and support employees “to support any new customers we acquire.”

Performio, which also has offices in San Francisco and the Australian city of Melbourne, advertised 19 positions on its website as of July 6.

Recent hires for the company include chief revenue officer Neil Graham and chief technology officer Dmitry Korablev.

Graham has helped “SaaS revenue organizations achieve outstanding results for more than two decades, including achieving two successful IPOs,” and previously held executive positions at Salesforce Inc., Tealium, and Jive Software, the company said in May when he was hired.

Korablev was most recently vice president of engineering at Datometry, a database virtualization platform.

Spreadsheet conversions

Performio provides a “cloud-based sales performance management platform” that organizations’ sales and finance teams use to manage, calculate, and report incentive compensation information.

In simpler terms, the company’s enterprise software is used to track salesperson commissions, a once cumbersome and laborious process.
Prior to adopting Performio, 80% of its customers used spreadsheets to manage their sales commission process.

“We automate all of that,” says Morris.

“We bring in all the data, we calculate commissions, and then we have a portal where sellers can log in and see what they’re getting each month.”

“It’s a $5 billion global market. It’s a big market,” he says.

Morris says Performio has five major competitors, including Xactly of San Jose which was sold in 2017 for $564 million, and Spiff of Sandy, Utah, which secured $46 million in funding last year.

“We are in a very competitive space.”

Moving from Irvine

Founded by sales compensation expert David Marshall in Australia in 2006, Performio first served clients in the Asia-Pacific region.

The company expanded to the United States in 2017 and moved its global headquarters to Irvine two years later. It now serves a worldwide clientele.

“We love being in Orange County. We have employees all over the world. We definitely have critical mass here in Orange County,” Morris said.

The company is located in a WeWork space in a building along Von Karman Avenue near John Wayne Airport.

Turnover up 77%

Morris declined to provide revenue figures. However, the company claims to have increased year-over-year revenue by 77% in 2021.

Performio says it “currently works with some of the largest banking, media, healthcare, manufacturing, technology and software companies in the world.”

Notable customers include AstraZeneca, BrowserStack, ChargePoint, Contentful, Drager, Johnson & Johnson, OnDeck, Simpli.fi, Veeva Systems, Vodafone and WP Engine, according to a statement from Performio last month.

Investors

Paul Barber, President of JMI Equity, and Jack Duane, Vice President of JMI, have joined Performio’s Board of Directors as part of the funding agreement.

“Performio is an emerging leader in sales commission software, and we’re excited to help take the company to the next level,” Barber said in a June 14 statement regarding the funding round.

JMI, which invests in software vendors, has a local office in San Diego and has invested in other local companies in the past, including Peregrine Systems.

Morris said “several companies” have invested in the Performio, including Pacific Lake Partners of Boston and Trilogy Search Partners of Bellevue, Wash., in addition to JMI Equity.