Optimizely hits USD $400m ARR milestone with revenue quadrupled

Digital experience platform (DXP) provider Optimizely has announced an extraordinary accomplishment: It has successfully quadrupled its revenue over the past four years to reach an impressive USD $400 million ARR (annual recurring revenue) milestone in Q1 2024.

Notably, 52% of this ARR growth is directly attributed to multiproduct customers as brands gravitate towards bringing their technologies into a single suite. This trend is evidenced by Optimizely One's unified workflow, which has yielded a 21% Year-over-Year (YoY) growth in multiproduct ARR. Moreover, customers' usage of the CMP platform has reached 890k tasks completed in the past year, emphasising marketers' growing reliance on platforms that support entire campaign life cycles.

The London-based company, which launched as Episerver in 1994, underwent a transformative journey following its acquisition by Insight Partners in 2018. To align with the evolving needs of contemporary digital teams, Optimizely strategically acquired category companies and further enhanced its product offerings. This included integrating solutions over the past three years for content marketing (Welcome), experimentation (Optimizely), and commerce (Insite Software), culminating in the landmark launch of Optimizely One late last year.

Optimizely One empowers a unified workflow, accelerated by AI, to simplify the process of creating, managing, delivering, and optimising content seamlessly within a single platform. According to Alex Atzberger, CEO of Optimizely, "Reaching USD $400 million in annual recurring revenue is a remarkable accomplishment that proves we are successful in our mission to make marketers' lives better."

Currently, over 10,000 businesses use Optimizely for superior digital experiences, increasing reliance on the platform and cementing its immeasurable value to marketers. The past year alone has witnessed a phenomenal 70k experiments successfully completed, an 18.5% YoY increase, yielding 390B test impressions. A 24.6% increase in experiment ideas being submitted indicates a rise in collaborative test and learn cultures.

Reflecting its solution's increasing popularity, nearly 150 companies have gone live on Optimizely CMS since the start of 2023, signifying a 20% YoY increase. Customer use of the CMP platform almost doubled over the past year, with 890k tasks and activities completed, demonstrating a marketing need for a comprehensive platform that supports the entire content and campaign lifecycle.

Adam Berger, Managing Director at Insight Partners, commented on the company's remarkable growth, "With three decades of experience investing in high-growth SaaS companies, Insight Partners knows what success and healthy growth metrics look like in software. Optimizely's growth trajectory has been extremely impressive and reflects their enduring commitment to innovation and customer empowerment."

"Not only is achieving this ARR milestone a difficult feat, but the company also has all of the components needed to sustain its strong market position. We're proud to remain a core part of Optimizely's journey and are excited to see them achieve new milestones along the way."

As Optimizely thrives with an escalating ARR and continued international recognition, Alex Atzberger affirms, "Optimizely has always been at the forefront of delivering exceptional digital experiences ...we are excited to continue leading the industry for the next thirty years and beyond."