Like other cloud-based businesses, software-as-a-service (SaaS) providers have had to contend with a lot of turbulence over the past few years.
Jason Godley, CFO at Xactly, a provider of revenue intelligence and sales performance management solutions, knows much about how companies handle change. With more than 25 years of experience in the financial industry, he has worked with high-growth, global organizations. At Xactly, he focuses on building a revenue strategy that strengthens organizational operations to ensure balanced growth and profitability.
Jason Godley
CFO, Xactly
First CFO Position: 2014
Notable Previous Employers:
- Fastaff Travel Nursing
- Citi Bank
- PwC
- Jefferies
BOB VIOLINO: What key trends are you seeing in the SaaS market?
JASON GODLEY: As organizations continue to experience market instability, there has been a marked shift in the mindset of companies to move away from a business model that prioritizes growth over profitability to one that is more balanced. While this trend is nothing new, as the pendulum can swing the other direction during a strong market, the way organizations approach profitability changes.
SaaS companies have begun changing their financial profiles to ones with lower growth rates and higher levels of profits. At the same time, the question is not only one of balance but also of timing and execution. Architecting a strategy is one thing, operationalizing it over the right time frame to drive long-term value is critical.
It’s important to understand the trade-offs being made today and avoid making decisions that might adversely impact long-term terminal value. The bottom line is SaaS companies who strike the right mix here can weather uncertain economic headwinds with confidence. Similar to other industries, generative AI is another important trend we’re focused on as an organization.
We’re zeroing in on two key areas: how can we continue to innovate our products to leverage generative AI to add value for our customers; and how can we leverage the technology to drive efficiencies throughout the business.
There’s been a lot of uncertainty in business over the past several years. How do you navigate that?
GODLEY: Uncertainty is one of the more common challenges faced by every CFO, so being able to navigate through it is ever more critical. For me, it’s important to have simplified all aspects of the business into what I call the “business equation.”
In other words, what are the most important levers the organization needs to focus on regardless of the “weather” that will drive financial performance? Knowing where to invest and/or where to reduce or optimize spending while keeping a pulse on the business equation is paramount.
Communication is crucial. I endeavor to tailor the message to my non-finance audience, which is not always easy as finance professionals can get caught up in our own silly jargon. It’s also as much about how one delivers the message as the message itself.
You’ve said today’s CFOs need to act as “chameleons” in their role. What do you mean by that?
GODLEY: The role of the CFO has grown increasingly complex and is continually evolving, forcing modern CFOs to wear many hats — from acting as strategic decision-makers for the business to managing stakeholders’ expectations and more.
The rise of AI has amplified this trend and the technology is only becoming a bigger priority investment for businesses, leading to increased pressure on the CFO to deliver. To help juggle these demands, CFOs need to act as “chameleons,” meaning they need to be comfortable with adapting to the constant external and internal pressures of their role while tending to different stakeholders in the business.
I understand you worked at a cattle ranch before making the jump to finance. Are there any parallels between the two; any lessons from the ranch work that you brought to the C-suite?
GODLEY: I was fortunate to have been raised on a working cattle ranch in Wyoming. Interestingly, there are a lot of parallels between the ranch and the boardroom. The relentless amount of hard work overlaps with the uncertainty, like wondering when the next calf would need to be delivered at 3:15 a.m. and being there to help. Decision-making was also a priority instilled in us as kids.
You always need to be prepared and be ready to take action. You don’t know when something will go wrong with the business, but invariably it will. With preparation—like knowing the business equation— and a get-it-done mentality, you should be in a good place. I can also tell you one thing, being a CFO beats putting up hay.