What the business is
Customer messaging and support software, best known for the chat bubble on thousands of company homepages
The bet
A returning founder-CEO can narrow Intercom from its chatbot into a focused customer-service platform that competes directly with Zendesk
Starting capital
$239M raised from Kleiner Perkins, GV, Index and others; no plans to raise more
How it started
Eoghan McCabe co-founded Intercom and stepped down as CEO in July 2020, when revenue was about $100M. TechCrunch notes that came about 10 months after a story alleging misconduct; McCabe said the two were unconnected, that the matter was investigated and closed, and his departure was long planned.
What happened
Under Karen Peacock, revenue grew to $200M. In September 2022 Intercom cut 5% of its workforce while announcing a software overhaul. On October 6, 2022 the board reappointed McCabe, then chairman, as CEO, effective immediately. Peacock moved to an advisory role for six months. McCabe said the board approached him.
What has to be true
The board asked McCabe to return as the company needed a new phase of focus
Intercom's chatbot had made it famous but limited its revenue, so it had to pick a lane
Customer support is a very large market where Zendesk dominates the mid-market
What can be applied
McCabe's plan was focus: 'pick a lane' in a giant space, then go after the dominant mid-market player, Zendesk, as Salesforce already earns more from support than from sales software.
Aftermath
As of October 6, 2022 McCabe was CEO and chairman and had announced the plan to challenge Zendesk, with Peacock advising for six months.
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