Xactly Achieves Breakout Business Performance in 2007

SAN JOSE, Calif., Jan. 28 /PRNewswire/ -- Marking nearly three years since its founding, Xactly Corporation today announced the extraordinary growth of its business in 2007, with dramatic gains in revenue, customer acquisitions, renewals and subscribers. The company also achieved significant industry recognition for its leading role in defining -- and delivering a suite of on-demand applications to address -- the emerging Sales Performance Management market.

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In the 12 months ended December 31, 2007, Xactly achieved a triple-digit year-over-year increase in revenues. The company also doubled its customer base -- and in doing so, has tripled its subscriber base. During the same period, the company achieved an enviable 94.4 percent customer-renewal rate, surpassing the industry average of 90 percent and underscoring Xactly's ability to deliver sustained customer value. And in March, Xactly completed its third round of financing, raising an additional $15 million to fund further expansion.

"Across all fronts, 2007 was a watershed year for Xactly -- demonstrating that our value proposition for on-demand sales performance management and commitment to ensuring customer success are striking a highly responsive chord in the marketplace," said Christopher Cabrera, founder, president and CEO, Xactly. "Over the past 12 months, Xactly has established itself as the leader in the emerging sales performance management space, forecast to reach $13.5 billion by 2010. We have built a highly loyal customer base and a strategic partner ecosystem, and are successfully executing on our product roadmap, through which Xactly offers the most comprehensive suite of sales performance management solutions available from a single vendor."

In 2007, Xactly also made significant achievements in the following key areas:

    --  Signed marquee customers across a wide range of industries.  In
        addition to doubling its customer base in 2007, Xactly signed some of
        the leading names across numerous vertical market segments, such as
        financial services, software and technology, telecommunications,
        manufacturing, media and entertainment, and life sciences.  New
        customers include ArcSight, Aspen Technologies, The Atlanta
        Journal-Constitution, BlueLinx, Cablevision, CNET Networks, Cox Media,
        DHL Global Mail, EFI, Interwoven, Invitrogen, John Hancock, Misys, The
        Phoenix Companies, RightNow Technologies, salesforce.com, Scripps
        Networks, Siemens, SuccessFactors, Time Warner and US Bioservices.
    --  Delivered on product roadmap with new innovations.  In addition to
        releasing four new versions of its flagship Xactly Incent sales
        compensation management application in 2007, the company launched new
        products to round out its on-demand sales performance management
        solutions suite.  Xactly Rewards is an innovative, non-cash reward
        recognition solution, soon to be available exclusively on
        salesforce.com's Force.com platform.  Xactly Modeling is a solution
        that empowers finance and sales to forecast the impact of commissions
        expenses, organizational changes and compensation-plan adjustments
        prior to implementing them.  Xactly also introduced a set of open APIs
        called Xactly Connect, making Xactly Incent the first on-demand
        incentive compensation management platform to provide connectivity to
        any system.  Further, Xactly launched its Xactly Incent Managed
        Service offering, based on Xactly Incent and designed to serve the
        needs of the small and medium business market.
    --  Strengthened key partner ecosystem.  Also in 2007, Xactly broadened
        and deepened its strategic partnership with on-demand CRM pioneer
        salesforce.com and its ability to tightly integrate Xactly offerings
        with the Salesforce platform. Xactly is one of the most frequently
        requested applications on salesforce.com's AppExchange, and introduced
        a commissions mash-up with the company in September 2007.  Xactly is
        also a member of Oracle's strategic advisory council for on-demand
        CRM, and provides deep integration between Xactly Incent and Oracle's
        Siebel CRM On Demand.  And Xactly joined Microsoft's partner program
        for Microsoft CRM Dynamics.  Additionally, Xactly entered into
        strategic partnerships with on-demand leaders Astadia, Bluewolf,
        BigMachines, Iconixx, Right Now Technologies and SuccessFactors.
    --  Garnered significant industry recognition.  During the past year,
        Xactly was widely recognized by market analysts and industry groups
        alike.  The Sand Hill Group named Xactly a "Top Software Innovator,"
        as did The451.com in its exclusive Innovators Showcase.  Xactly also
        received a coveted Stevie Award for "Best New Company Up to 100
        Employees" by the American Business Awards.  Meanwhile, market analyst
        firm IDC wrote in November 2007 that "Xactly should be included on any
        shortlist for on-demand or managed services sales incentive
        compensation management," while analyst firm Gartner rated Xactly
        "Promising" in its 2007 MarketScope for Sales Incentive Compensation
        Management Software report. Additionally, editors at CMP's Intelligent
        Enterprise recognized Xactly as a "Company to Watch" in Performance
        Management.

"Xactly's success in sales compensation -- and their trailblazing in sales performance management -- clearly played a key role in their 2007 performance," said Mark Smith, CEO & EVP of research, Ventana Research. "By focusing on delivering the right solutions for organizations demanding sales performance management solutions, Xactly has the opportunity to address a rapidly growing market that is core to sales and finance executives."

About Xactly Corporation

Xactly Corporation is the market leader 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 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 across a variety of industries, ranging from SMBs to large enterprises. For more information, visit http://www.xactlycorp.com or call 1-866-GO-XACTLY.

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

     Media Contacts:
     Samantha Moore
     Xactly Corporation
     Tel: 408-200-0675
     Email: smoore@xactlycorp.com

     Kristin Reeves
     Blanc & Otus Public Relations
     Tel: 415-856-5145
     Email: kreeves@blancandotus.com