“What I was so excited about was that this was a company that was trying to change its industry or had the potential to,” says Adams of his decision to join in 2003.
The company’s expansion did come with tremendous growing pains, Adams told INSEAD Knowledge, as it involved reconfiguring systems to handle the million-plus transactions a year -- an expensive but necessary initiative to manage a growing consumer-driven business. The company also had to structure its management team to build scalability as its products are currently available in 31 languages and clients include educational institutions, armed forces, government agencies and corporations.
However, the stock that was dubbed among the hottest IPOs in 2009 has hit snags this year following disappointing US sales and the recent departures of two high-level executives. In the second quarter, US sales that made up 86 percent of revenues declined two per cent from the previous year. Since July 22, its stock price has dropped 25 per cent and trades below its opening day price. The company also lowered its 2010 sales bookings and revenue forecasts. Analysts are pinning the company’s long-term recovery on the performance of a new product launch in September and continued international growth that saw a 155 per cent annual increase from the second quarter of last year.
With a noticeable air of uncertainty among analysts concerning the company’s management woes and US sales performance, Adams’ challenges are among his latest growing pains that come with being a publicly-owned company.
Visiting INSEAD earlier this year to address participants at an Entrepreneurship Bootcamp, Adams had this to say: “[MBA students have] got to be very sensitive to the window of opportunity when they come out of business school. Many of us put off starting a business or going entrepreneurial for a long time and we come to regret it. The opportunity to pursue your passion is the way to find true happiness.”
This article was written by Mrinalini Reddy based on an interview for INSEAD Knowledge.
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