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Optimizely to be acquired by Episerver

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Re: Optimizely to be acquired by Episerver

#131

The problem I had with Optimizely when it was the go-to solution, was that it had a truly problematic impact on front-end performance due to the blocking way its script was loaded and page variants introduced. In some cases page loads were blocked by up around 5 seconds. For obvious reasons it was tricky to run an A/B test just for testing the impact of Optimizely's script itself. But the key issue is that all the si…

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Re: Optimizely to be acquired by Episerver

#132

Earlier quoted context omitted.

Sorry for my daftness, but what is the incentive behind intentionally losing a bunch of staff before 'exiting'? Just to reduce your cash burn?

Mostly to get better profitability numbers to show to potential acquirers

Exactly. A small number of us were offered packages to incentivise us to stay (ironically we still left), but the vast majority weren't. Which led us to conclude that the plan was to just keep everything afloat long enough to sell.

Re: Optimizely to be acquired by Episerver

#133
post #60

Earlier quoted context omitted.

I have a sort of general question about this narrative, which seems to apply to lots of startups that begin as self-service, developer-focused projects and end in enterprise hell. Is it not the case that these startups begin developer-facing, get market traction, are lavishly funded, and then discover that the self-service offering they've built simply can't satisfy the projections they've made to justify their valua…

I worked at Optimizely for 4 years and can tell you that pivoting to Enterprise has been one of the best company decisions. One of the important distinctions between Optimizely and most developer-first platforms is that experimentation is a hard practice to pick up. Most companies have difficulties getting their programs off the ground and keeping them funded, let alone grow or scale them. Small digital businesses st…

First off, love the username :-).

You argue that pivoting from self-serve to enterprise was one of the company's best decisions. If that were true, Optimizely would be considerably more valuable now than it was four years ago, which is manifestly not the case.

Moreover, if the self serve model was indeed fatally flawed, then it would not be possible for anyone to build a profitable business serving this segment. However, a competitor, VWO, showed that it is possible to build a large, profitable business using this model.

Finally, let's say my prior two arguments are wrong, and the unit economics of the self serve business were fundamentally flawed--an assertion I challenge--the self serve business would still have been useful as a source for attracting future enterprise customers. When Optimizely cut the self serve plans, it also killed its largest source of enterprise deals.

Re: Optimizely to be acquired by Episerver

#134
post #4

I would not want to be Optimizely and have to compete against a strong free offering like Google Optimize.

I use Google Optimize. I wouldn't call the free offering "strong." There is a limit of about six experiments at one time. Each experiment can have up to 8 variants. And if you want more, then be ready to shell out thousands per month (I forget the exact number, but that's the ballpark). Overall, if I were to redo things, I'd probably be better off just using Google analytics events. Edit: that said, I'd never use a p…

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Re: Optimizely to be acquired by Episerver

#135

Completely unsurprised. Experimentation-done-right is too expensive and too ambiguous to sell as a product. Every product experiment requires a complex set up, a lengthy running period across a huge base of users, and then heavy analysis in order to achieve statistical confidence over a specific feature's impact on a business metric. That "confidence" is often represented by a subpercentage point that may or may not…

https://www.webtrends-optimize.com/

Re: Optimizely to be acquired by Episerver

#136

I worked at Optimizely from before its series A in 2012 until the end of 2016, so I have a unique perspective on this. For most of the time when I worked at Optimizely, the company was all the rage. It appeared at the top of most "hot startup" lists, the Glassdoor reviews were 5/5, revenue was skyrocketing, and for a period in 2014 it became the fourth most valuable YCombinator company (after Stripe, AirBnB, and Drop…

This description absolutely nails Foursquare as well.

Re: Optimizely to be acquired by Episerver

#137

I interviewed for a marketing role at Optimizely back in 2013...I passed all the interviews with the team and then had a final, short interview with the CEO. He asked me a few basic questions and then asked 'if you only had 3 years to live, would you work at Optimizely?'. I responded honestly and said no. Said that I'd love to work here to help and grow the business, learn, and further my own career but if I had only…

Over the years I A/B tested each of my interview questions in order to better measure what I was looking for. It sounds like you might have been asked an early version of one of the questions I used to ask so sorry you didn't get the "optimized" version. (there was a big difference in responses between only 3 years and 10 years to live) Also, to clarify, I used to end my interviews with TWO questions: (1) if you had…

Reading the op's post and your reply, I can only come up with two possible conclusions:

1. The op is lying about his experience.

He states he answered NO to question 2, which is what you claim to be looking for. Unless his answer to question 1 was "Work for Optimizely" (which, I guess, someone might say, maybe) then I don't see how you get a contradiction. By your logic, he would have been a hire.

2. The recruiter lied to him about why he was rejected.

Maybe everyone got a short sit down with the CEO back then and he took that to mean he passed all the other interviews? Maybe something else didn't check out and that was an easy way to let him down?

Anyway, if you're A/B testing, wouldn't you hire people regardless of their answers and then assess their performance over a longer timeframe to determine the efficacy of the questions and answers?

Re: Optimizely to be acquired by Episerver

#138

In 2014 I wrote an article on why Optimizely's approach to AB testing was statistically flawed [1]. I was working at a competitor so I needed to be a bit circumspect. It was discussed here: https://news.ycombinator.com/item?id=7287665 I always wondered how they got away with it for so long. [1] http://www.datascienceassn.org/sites/default/files/Most%20Wi...

It's a bit breathtaking how basic the statistics knowledge is to make this critique (not complaining about the critique, mind you). I'm startled that this was coming as news to anyone.

Re: Optimizely to be acquired by Episerver

#139

Earlier quoted context omitted.

For the record, I think op is probably speculating a bit. That said, I'm not sure how you can be so sure op's not losing money unless you have intimate knowledge of the cap table and the deal.

The acquisition share price is usually told to employees. They probably got the information from current employees. Since they are a shareholder, they'll eventually find out anyway.

I was involved in an acquisition as a shareholder. I was nigh impossible to get anything out of the executives. It was an acquihire so maybe things were different.

Re: Optimizely to be acquired by Episerver

#140

I remember meeting Dan, the founding CEO of Optimizely, at winter 2010 YC demo day. I had just grabbed my name tag and was walking toward the building when he stopped me outside to give me the pitch. He immediately struck me as a smart, capable guy, but as a former software engineer I couldn't understand why companies wouldn't just build A/B testing themselves. What did Optimizely add? How was it defensible? Dan didn…

BTW, I'm not sure if you would have expected them to get to $100m in ARR either when you passed on them because you were skeptical of the market. There's a lot between $1m to $100m ARR that can go wrong. In this case, I don't think it was the market opportunity.
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