Xactly Corporation (NYSE:XTLY) – Sell or Short Recommendation – $8.25 PT

December 23, 2015 concludes the 180-day lockup period on Xactly Corporation. We previewed IPO lockup expiration events and opportunities on our IPO Insights platform.

When the lockup period ends for XTLY, its pre-IPO shareholders, directors and executives will have the chance to sell their ~20 million shares. (This was calculated by subtracting the 7 million shares initially offered from the total~27 million outstanding.)

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The potential for a sudden increase in stock available in the open market may cause a significant decrease in XTLY shares, opening a short opportunity.

Business Summary: Provider of Cloud-based Incentive Compensation Solutions

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Xactly Corporation offers cloud-based incentive compensation solutions for sales and employee performance management in the Unites States and the United Kingdom. Its product portfolio includes Xactly Incent Enterprise, which manages critical elements of incentive compensation for mid-sized to large enterprise organizations; Xactly Objectives, which offers solutions for sales and non-sales employees and managers to track and achieve objectives through collaboration; and Xactly Incent Express, which offers incentive compensation solutions for smaller companies with fewer than 350 employees.

In addition, the company offers Xactly Insights, which uses aggregated and anonymous data to help motivate employees and improve performance; and Xactly Incent Enterprise, which offers analytics, automated workflows and approvals, modeling and credit assignment.

The company markets its products through a direct sales force that focuses on high-tech manufacturing, media and Internet, life sciences, communications, business and financial services, and Software-as-a-Service and conventional software.

Through January 2015, Xactly had approximately 194,000 subscribers versus 140,000 subscribers a year prior for an increase of 39 percent.