Pendo is a software development company that distributes its products to product managers who are in need of specific data to better do their jobs. The company is a digital product cloud creator and it is gaining recognition as a valuable solution provider for companies that benefit from understanding usage and other data that gives them the information that will help them to deliver the best products for their customers. Here are 20 things that you didn't know about Pendo that will help you to become acquainted with its history, along with the products and services that it has to offer.
1. The company was created to solve a problem
Todd Olson is the co-founder and CEO of Pendo. He discovered a serious lack of available information for product managers while working at a different company. This gave him the idea to develop a product that could create a cloud system that would give professionals access to vital data that is needed in making important business decisions. From his identification of the problem, he was able to create a solution that would satisfy the requirements for more information.
2. Olson is a brilliant entrepreneur
Todd Olson was proficient as a coder by the time that he was just 14 years of age. He spent much of his teen years working as a tech professional at a local Delaware bank. He set up computer software systems and databases with skill and confidence performing complicated tasks as an architect in the tech field before the age of 20. He established 3 new startups and has a keen understanding of the ups and downs of business in the tech world.
3. Pendo had humble beginnings
When Olson first started Pendo, it was a small startup business. The idea that the company was based upon was something that made sense to investors as a potential goldmine for a decent return on investment. The company started out small but it wasn't long before the Raleigh, North Carolina based company was successful in raising millions. Investors jumped on the bandwagon and included Spark Capital, Battery Ventures, Meritech Capital Partners, and Sapphire Ventures which joined forces to raise $108 million in capital funding.
4. Pendo has 4 co-founders
Although Pendo is the dreamchild of Todd Olson, he had help in establishing the company as a legitimate business. He was joined by three partners who also occupy positions as executive leaders in the company. Olson is the chief executive officer, and he is joined by Erik Troan who serves as the chief technology officer, Eric Boduch who is the chief evangelist, and the vice president of business development Rahul Jain.
5. It was hard for the founders to raise funds
When Pendo first started out it wasn't easy to find investors who were interested in supporting the idea for a new software company. Olson and his team met with several lenders who declined their support for one reason or another. After a few disappointing meetings and getting their requests for funding turned down, things began to change. Several investors recognized that Pendo was a company that would have a solid customer base and after the initial disappointment of being turned down, things began to change at a rapid pace.
6. Pendo started out with $1 million
There were serious reservations among investors because they believed that the target clients for Pendo would not have enough money in their budges to purchase the software products that would be offered. Despite these early rejections, Olson and his team made contact with Idea Fund Partners in Durham and a few others, and they were able to raise $1 million to get the business started.
7. Pendo offers solutions with their solutions
Sometimes a fix that is offered for a problem can create its own new set of problems. Some software solutions are difficult to use and this creates additional headaches and a greater expense for training, with increased downtime until the programs are learned. This isn't the case with Pendo. The software and cloud solutions that they offer for businesses are designed to be extremely user-friendly. Instead of creating more issues that need resolution, Pendo solutions truly are helpful in streamlining the operations for a product-driven company.
8. Pendo has experienced rapid growth
Pendo was launched in 2014 and although it started out a little slow, they've shown a pattern of steady growth in both their staffing and their customers. The customer base quickly grew to over 600 with subscription revenues almost tripling each year and continuing the pattern of growth. The staff count went up to 214 in 2018 and the company was finding itself on solid footing, establishing a pattern of consistent and fairly rapid growth.
9. Pendo has the potential for going unicorn
Pendo has increased its valuation to over $1 billion thanks to its pattern of rapid growth. If the team of executives and workers can keep up with the current and future demands, the company is headed in a positive direction. If these conditions are satisfied and the market demand for the products and services offers remains constant at a minimum, we will likely see it become a unicorn company.
10 Where Pendo has an inside track
The planning of the cloud-based technology software provided by Pendo comes with a built-in feature that gives the company an edge in the software industry. While some developers and distributers depend upon customer feedback to make changes in their products to keep customer satisfaction high, Pendo has an inside track. Pendo's software gives its customers feedback about which features their customers are using and which ones they don't use. The software also has built-in user surveys in the form of pop up messages that allow customers to give feedback on the spot. This is highly valuable information that can be converted into sales and increased revenues for the companies using it.
11. Pendo is expanding through acquisition
In 2017, Pendo was in a position to purchase a new startup that would help to expand its operations. The company is located in Israel and it provided increased capabilities that encompass mobile apps, which everyone knows is a necessity if one wants to keep up with consumer demands and current trends in technology. The executive team puts a lot of thought into which new startups have the most to offer Pendo in terms of expanding and improving services.
12. Pendo has an edge over the competition
The edge that Pendo has over its competitors is that all of them are startups and the majority offer a single function in the software solutions that are offered to consumers. Pendo, on the other hand, offers a complete suite of tools that provide more complete solutions to their problems. There are so many different components available that most customers can find the ideal solution to multiple problems in a single buying experience. It also creates a more convenient experience because a variety of tools can be accessed through one single login whereas some other solutions require multiple logins.
13. Pendo's customer service is excellent
Another plus for going with Pendo is that the company provides customer service and technical support that is designed to correct any problems which arise with just a single phone call. The software is designed to be extremely user-friendly which takes away lost time and decreases in productivity from a learning curve. This company has dialed in some of the most important aspects of conducting business by predicting consumer needs and desires in advance, then ensuring that each individual customer receives the services that they need to improve the way that they carry on their production business. In the business world, it doesn't get much better than that.
14. Pendo staff knows the customer isn't always right
In our research of Pendo, we came across an interesting Blog sponsored by the company. It's a piece that could us used as a training tool for almost any company and in the blog, the writer talks about the fact that the customer isn't always right. There are times when you can move ahead and give the customer precisely what they are asking for, but if you do, and it's not the right solution, it is going to result in the customer feeling disappointed and maybe even having resentment and hard feelings towards your company. It's always best to point out the truth about solutions with good explanations. We were impressed with this philosophy and it falls under the category of total customer care. You may risk offending a customer here and there, but you may also be saving them a lot of time, frustration, and money in the end.
15. Pendo has a high rating in the Financial industry
Surveys of companies in the Financial sector using Pendo have shown a positive response. 91 percent of these companies have reported that since implementing Pendo software, there have been reductions by between five to ten percent in the cost of providing customer service support for their customers. This is a remarkably high positive rating.
16. Customer satisfaction ratings improve
Financial Services customers who use Pendo software have noted that there have been marked improvements in their own customer satisfaction ratings. Seventy-seven percent of the Financial Services businesses using Pendo report that their NPS and satisfaction scores have increased by five to ten percent. This shows positive results for the majority of Pendo's customer base.
17. More than half of Pendo's customers saw a return on their investment
Pendo offers effective software solutions but it's important to note that the products the company offers are not inexpensive. Even though they are moderately high in price, although not prohibitive in cost, using the software is saving companies money. What makes a good product great is when it yields a return on the investment made for the product while improving your business in tangible ways. Surveys have shown that fifty-four percent of Pendo customers have seen a return on their investment in the products within a three to six month period of time.
18. Pendo has the potential to change companies for the better
As we were reading through some of the verified reviews left by Pendo customers we were impressed with some of the comments left. After implementing the use of Pendo software solutions, there were several different companies that indicated the data that is now at their fingertips has changed the way that decisions are made within their company and it has improved the way that they design aspects of their companies and products. This is a significant contribution to the improvement of their customers' businesses.
19. Pendo has not yet gone public
Olson has been asked repeatedly if he plans to take the company public. He is being guarded about this action but he did offer that it is something that is under consideration. If you're an investor and looking for stocks in the tech sector, Pendo hasn't taken their company to the market for public trading yet but it could happen at some time in the future. Although there has been no confirmation and Pendo has not yet filed paperwork, Olson didn't rule it out.
20. Pendo is a company to keep your eye on
Pendo is currently enjoying a period of immense growth. It is still making acquisitions of new startups and has recently added a company from the United Kingdom to its collection. Once it took hold in the market, it has not failed to prosper and thrive. This is a company to definitely keep your eye on. In the event that the executives make the decision to make a public filing, the stock would be something to consider if you're looking for good investment options in the technology and software development sector.
Written by Allen Lee
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