Exactera Company Profile

Background

Exactera, formerly known as CrossBorder Solutions, is a leading provider of AI-powered corporate tax compliance solutions. Established in 2016 and headquartered in Tarrytown, New York, the company specializes in transfer pricing, tax provision, and research and development (R&D) tax credit services. Exactera's mission is to transform tax data into strategic business intelligence, enabling organizations to navigate the complexities of tax compliance with greater efficiency and accuracy.

Key Strategic Focus

Exactera's strategic focus centers on leveraging advanced artificial intelligence and machine learning technologies to automate and enhance tax compliance processes. The company's core objectives include:

Transfer Pricing Compliance: Providing AI-driven solutions that streamline global transfer pricing compliance, ensuring adherence to international tax regulations.

Tax Provision Automation: Offering software that integrates with existing systems to automate tax provision calculations, reducing manual errors and improving efficiency.

R&D Tax Credit Optimization: Delivering technology-based services that simplify the process of claiming R&D tax credits, maximizing benefits for clients.

Exactera targets medium to large businesses across various industries, aiming to optimize their tax compliance processes through innovative technology solutions.

Financials and Funding

Since its inception, Exactera has secured significant funding to support its growth and innovation initiatives:

July 17, 2023: Raised $33 million in additional funding from investment firms Insight Partners and Savant Growth.

March 10, 2021: Secured $55 million in a venture round.

September 24, 2019: Obtained $40 million in Series B funding.

December 12, 2017: Received $6 million in Series A funding.

The capital raised has been utilized for ongoing product development, innovation within its service offerings, and evaluating potential acquisition targets as part of its growth strategy.

Pipeline Development

Exactera continues to enhance its suite of tax compliance solutions, focusing on:

Transfer Pricing Solutions: Developing AI-driven software to produce comprehensive, audit-ready reports that comply with global tax regulations.

Tax Provision Services: Automating tax provision calculations to reduce manual errors and improve efficiency.

R&D Tax Credit Services: Simplifying the process of claiming R&D tax credits through technology-based services.

The company is committed to continuous innovation, integrating advanced technologies to meet the evolving needs of its clients.

Technological Platform and Innovation

Exactera distinguishes itself through its proprietary technological platforms and innovative methodologies:

AI-Powered Solutions: Utilizes advanced AI and machine learning algorithms to automate complex tax compliance processes, enhancing accuracy and efficiency.

ExactMatch: An AI-driven search engine that revolutionizes transfer pricing benchmarking by automating the identification of comparable companies, ensuring reliable arm's length pricing.

Comprehensive Data Integration: Accesses multiple data sources to provide a holistic view of public and private comparable companies, facilitating robust benchmarking analyses.

Leadership Team

Exactera's leadership team comprises experienced professionals dedicated to driving the company's strategic vision:

Walter Scott: Appointed CEO in July 2023, bringing over 25 years of executive leadership experience, including his role as CEO of Devo, a provider of cloud-native security platform solutions.

Michael Hickman: Co-founder and CFO, instrumental in securing funding and overseeing the company's financial strategy.

Leadership Changes

In July 2023, Walter Scott succeeded the previous CEO, marking a significant leadership transition aimed at accelerating Exactera's growth strategy and expanding its product portfolio through innovative development and acquisitions.

Competitor Profile

Market Insights and Dynamics:

The corporate tax compliance industry is experiencing significant growth, driven by increasing regulatory complexities and the need for efficient, accurate compliance solutions. The integration of AI and machine learning technologies is transforming the landscape, offering enhanced automation and strategic insights.

Competitor Analysis:

Exactera operates in a competitive market with several key players:

Avalara: Founded in 2004, Avalara provides tax compliance solutions with a focus on sales tax automation. The company has a substantial workforce and significant revenue, positioning it as a major competitor.

TaxJar: Established in 2013, TaxJar offers automated sales tax reporting and filing services. The company has experienced growth and competes directly with Exactera in the tax compliance space.

Vertex: With a history dating back to 1978, Vertex provides comprehensive tax technology solutions, including AI-powered tax compliance tools. The company has a larger employee base and revenue compared to Exactera.

Exactera differentiates itself through its focus on AI-driven solutions and a commitment to innovation, aiming to provide superior efficiency and accuracy in tax compliance.

Strategic Collaborations and Partnerships

Exactera has secured investments from prominent firms such as Insight Partners and Savant Growth, reflecting strong investor confidence and providing resources for product development and potential acquisitions.

Operational Insights

Exactera's strategic considerations include:

Market Positioning: Emphasizing AI-driven solutions to offer a competitive edge in the tax compliance industry.

Product Development: Continuously enhancing its suite of services to meet evolving client needs and regulatory requirements.

Growth Strategy: Evaluating potential acquisitions to expand capabilities and market reach.

Strategic Opportunities and Future Directions

Looking ahead, Exactera aims to:

Expand AI Capabilities: Further integrate AI and machine learning to enhance product offerings.

Broaden Market Reach: Target additional industries and geographies to grow its client base.

Pursue Strategic Acquisitions: Identify and acquire complementary businesses to strengthen its market position.

By leveraging its technological strengths and strategic vision, Exactera is well-positioned to capitalize on emerging opportunities in the tax compliance sector.