2007-04-23 12:02:18 -

SAN JOSE, Calif., April 23 /PRNewswire/ -- Xactly Corporation, (http://www.xactlycorp.com/), the market leader in on-demand sales compensation management and an innovator in on-demand sales performance management, today announced that it has secured $15 million in Series C financing led by Alloy Ventures. Bay Partners, Rembrandt Ventures, Outlook Ventures and Spinner Asset Management also participated in the Series C financing. Bay Partners, Rembrandt Ventures, and Outlook Ventures led Xactly's Series A and B rounds.

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The new financing will be used to further advance customer adoption of Xactly's sales

compensation and sales performance management applications as companies move beyond legacy and spreadsheet-based systems. Additionally, Xactly will continue to drive customer adoption outside of North America into the European and Asia-Pacific regions and accelerate execution of its strategic 18-month product roadmap aimed at providing customers the most comprehensive array of on-demand sales performance management solutions from a single vendor.

"We are extremely pleased with the new participation led by Alloy Ventures, combined with the renewed commitments from our existing investors," said Christopher W. Cabrera, Xactly founder, president and CEO. "This investment sets us up to take advantage of the rapid expansion of the software-as-a-service (SaaS) market. We continue to deliver quantifiable business benefits and value to customers in automating strategic sales and finance business processes. The result is that our customers are increasing productivity, maximizing profits and better aligning performance to corporate goals."

Marketplace momentum behind SaaS is well documented. Investment banking firm Triple Tree, in their "Software as a Service: Changing the Paradigm in the Software Industry," projects the U.S. software-as-a-service market to expand from $2.3 billion in 2003 to $7.2 billion by 2008. Investment banker Deutsche Bank, in their November 2006 report "Software-as-a-Service: Opening Eyes in '07; Half the Market in '13," projects that SaaS could reach almost $30 billion -- half the application software license market -- by 2013.

"As an Xactly board member since the company's inception, I've witnessed their ability to consistently execute across every dimension of the business," said David Pidwell, Alloy Ventures, venture partner. "In addition to a roster of brand name customers and partners and strong and growing revenues, the marketplace momentum behind SaaS and sales performance management puts Xactly in an enviable position. It was an easy decision for Alloy Ventures to lead this round of investment in Xactly's rapid expansion."

To date, Xactly has achieved significant success with customer adoption and recruitment of strategic partners to its partner ecosystem. A sampling of key customers includes Informatica Corporation, Redback Networks (an Ericsson company), IronPort Systems, SonicWALL, Inc., BlueLinx Holdings, Inc. and Blackboard Inc. Key partners include salesforce.com, RightNow Technologies, SuccessFactors, Oracle, Astadia and Bluewolf.

Xactly addresses the sales performance management market, which includes performance solutions, operational solutions and sales force automation solutions. According to Ventana Research, a leading performance management research and advisory services firm, this market is expected to reach U.S. $13.5 billion by 2010.

Xactly is the first and only company completely focused on delivering a pure on-demand sales compensation management solution. It is also the first and only company to deliver a SAS 70 certified, true multi-tenant sales compensation management solution in a SAS 70 certified environment. Xactly's strategic 18-month product roadmap is focused on automating several key business processes for finance and sales including quota and territory management, price management and forecast/planning.

About Alloy Ventures

Alloy Ventures is an early-stage venture capital firm with over $1 billion under management. They have helped start and cultivate more than 200 successful companies in the fields of information technology and life sciences including such leading companies as Amgen, AMCC, Applied Biosystems, Aspect Communications, CV Therapeutics, Favrille, IDEC Pharmaceuticals, Nuance, Octel, PMC-Sierra, Red Brick Systems, Remedy and Verity to name a few. For more information, visit http://www.alloyventures.com/.

About Xactly Corporation

Xactly Corporation is the market leader in on-demand sales compensation management and an innovator in on-demand sales performance management. The company's flagship product, Xactly Incent, enables sales and finance executives to design, implement, manage, audit and optimize sales compensation management programs easily and affordably. Xactly's solutions automate the process of aggregating data from disparate systems into a secure, hosted repository and enable companies to leverage this business data which is the lifeblood of sales performance management. Xactly helps companies improve operational performance, optimize sales effectiveness, proactively manage risk and compliance and maximize profits. The Xactly family of products is used by sales and finance executives, compensation analysts, sales operations and sales professionals in medium-sized enterprises across a variety of industries. For more information, visit http://www.xactlycorp.com/ or call 1-866-GO-XACTLY.

Media Contacts: Dan Rampe Xactly Corporation Tel: 408-200-0610 Email: drampe@xactlycorp.com Kristin Reeves Blanc & Otus Public Relations Tel: 415-856-5145 Email: kreeves@blancandotus.com

(C) 2007 Xactly Corporation. All rights reserved. Xactly, "Incent right. Sell more.," and Xactly Incent, are trademarks or registered trademarks of Xactly Corporation. All other trademarks are the property of their respective owners.

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Source: Xactly Corporation