1
COMPANY ANALYSIS PAPER
Company Analysis Paper
ACCT 223
Aubrey Kallenberger
2
COMPANY ANALYSIS PAPER
The two companies I chose to compare are Xactly and CallidusCloud. Both companies
deal with incentive compensation. The founder and CEO of Xactly, Christopher W. Cabrera, was
an employee of CallidusCloud. Cabrera started Xactly in 2005. Xactly’s vision is “to change the
world of incentive compensation.” They are the leading provider of enterprise-class, cloud-
based, incentive compensation solutions for employees and sales performance management.
They are 100 percent cloud-based. Xactly believes their solutions allow organizations to make
strategic decisions, optimize behavior, increase sales and employee performance, and improve
margins. Also increase operational efficiencies, mitigate risk, design greater incentive
compensation plans, and reduce error rates in incentive compensation calculations. Xactly’s
core values are what they call C.A.R.E- customer focus, accountability, respect, excellence.
Xactly was awarded five awards for this year. They were awarded Top Workplace in the Bay
Area by the Bay Area News Group, Top Ten Best Workplace in the Bay Area by Great Place to
Work. The award for 30 Best Workplaces in Technology by.
CallidusCloud, also known as Callidus Software or Callidus, is a global leader in sales
performance management it was founded in 1996. The president of Callidus is Leslie Stretch
since 2007. They have 741 employees, none of which are represented by a labor union.
Callidus’ main goal is to make money and continue to make money. They are not shy about it
and display their hunger for money throughout their websites and interviews. They received
the 2017 Stevie Grand Winner Award and the 2017 International Business Award. One of their
first rewards was received in 2009, the APEX 2009 Award of Excellence. Since 2009 they get
3
COMPANY ANALYSIS PAPER
multiple awards every year for services, performance, and software. Callidus is ranked 3rd in
Sales Performance Management, and Xactly is ranked 2nd in Sales Performance Management.
The site I used to retrieve the financial reports was Amigobulls.com. I was unable to find
Callidus’ 2017 financial reports so I based it from 2016 to compare the two companies equally.
The three items that would be important to investors on the balance sheet are net earnings or
earnings per shares (EPS), gross profit, and operating expense. The net earnings are the bottom
line, it shows whether a company has a profit gain or a profit loss. EPS is the part of the
company’s profit due to outstanding shares of common stock. It helps determine a company’s
profitability. Gross profit show what is left of selling the product after the cost of production is
subtracted. Operating expense show how much it cost to run the company. Earnings per share
for Xactly was negative .55 in 2016 and negative .32 for Callidus. Xactly’s gross profit has had a
constant increase from 2013 until this year, 2017. Their gross profit in 2016 was $44.57 million.
Callidus had a reported gross profit of $128.64 million. Although Callidus has higher profits then
Xactly, Callidus is nine years older than Xactly. Due to being older, Callidus is able to have high
profit margins from over the years. Xactly reported an operating expense of $64.98 million in
2016. Callidus had an operating expense of $146.08 million. Xactly’s Net earnings was a net loss
of negative $24.71 million. Callidus also had a net loss of negative $13.14 million.
The three most important items on the balance sheet for investors is the cash, retained
earnings, and paid in capital. The cash shows the companies is satisfying their customers and is
profitable. A good company has less liabilities then assets. Paid in capital is the initial
investment amount paid by shareholders for their ownership interest. Retained earnings shows
the amount of profit the company reinvested or used to decrease their debt. Xactly had a cash
4
COMPANY ANALYSIS PAPER
amount of $48.31 million in 2016. Callidus had a cash amount of $148 million. Again, Callidus
has been building their company longer so their cash on hand would be larger then Xactly’s.
The company’s retained earnings for 2016 was negative $140.47 million compared to Callidus’
negative $302.83 million. Either companies listed their paid in capital, so I was unable to
compare it. It is still an important factor for investors to consider.
Xactly only has one investment activity listed for 2016. The only one list with a amount
is “increase (decrease) in prop plant and equipment.” They have it reported at negative $4.29
million. I do agree with having a negative number for investment in prop plant and equipment.
It helped to keep their cash used low. The two largest financing activities Xactly reported in
2016 are “other cash from (used by) financing activities” with an amount of $54.54 million and
