According to a recent report by Market Research Future, the global customer experience management market is estimated to grow at 22% CAGR to reach $18 billion by 2023. Earlier this year, Palo Alto-based Medallia (NYSE: MDLA), a leading player in the industry, went public. Its stock has had a tumultuous run so far. But the company isn’t too worried as it continues to consolidate in the industry with several acquisitions.

Medallia’s Financials

Medallia recently announced its second quarter results that surpassed market expectations. Revenues for the quarter grew 27% to $95.7 million, ahead of the market’s forecast of $91.32 million. Net loss was $38.3 million, compared to a net loss of $28.1 million a year ago. Adjusted net loss was $0.06 per share, ahead of the market’s estimate of a loss of $0.07 per share.

By segment, revenues from subscription services grew 24% over the year to $74.5 million and revenues from professional services grew 38% to $21.1 million.

Medallia’s Acquisitions

Medallia was founded in 2001 to build a service that could gather benchmarking data for services organizations such as hotels and compare the customer satisfaction levels at these organizations with those provided by other services within the same brand and by competitors. The husband and wife team of Borge Hald and Amy Pressman created a SaaS-based offering to gather feedback from multiple sources and provide real-time analytics to build visual dashboards so that organizations can improve customer experience. By integrating feedback from various media – web, mobile, and social networks, it is able to provide organizations with a holistic view of the customer.

Medallia has been expanding its offerings by acquiring several other smaller players. It has already made four acquisitions so far this year. In May this year, it announced the acquisition of customer success leader Strikedeck for an undisclosed sum.

Strikedeck offers a customer engagement platform that leverages technologies including workflow automation, machine learning, predictive analytics, usage tracking, surveys, and personalization. Its platform helps organizations integrate, manage, and obtain insights about their business processes and customer data. Companies can also use its platform to schedule and automate business review meetings, tasks, projects, and other events on a calendar.

Post the acquisition, Medallia will be able to provide seamless, 360-degree views on customer account health, including information on renewals, product adoption and usage, subscriptions, and billing. Prior to the acquisition, Sidetrack had raised a seed round in 2017. Its annual revenue is estimated to be $5 million.

Medallia followed the acquisition by adding Tel Aviv-based CoolaData to its portfolio. CoolaData offers a cloud-based behavioral analytics platform that leverages AI capabilities with its data platform to analyze implicit customer feedback and derive and predict customer sentiment.

Terms of the acquisition were not disclosed. Prior to the acquisition, CoolaData had raised $13 million in funding from investors including 83North, Viola Ventures, Ataria, and TSVC. Its valuation at the time of funding is not disclosed either. CoolaData was estimated to have annual revenues of $6.4 million.

Medallia hopes to leverage the acquisition to provide its customers with a more complete view of the customer journey and provide the underlying motivations needed by organizations to make smarter decisions on how to drive customer loyalty.

Last month, Medallia acquired Zingle, a multi-channel mobile messaging and customer engagement technology provider, for an estimated $42 million. Zingle’s patented technology allows hospitality and travel companies to deliver customer focused service real-time. It is a messaging platform that enables organizations to communicate with customers via text and other mobile messaging channels. By integrating chat capabilities with mobile solutions, it helps businesses deliver instant response to customers. Zingle is also leveraging AI capabilities to distribute service requests across an organization to deliver higher revenue per customer through improved service delivery and personalized offers at the right time.

Medallia plans to leverage Zingle’s technologies to help its customers improve their customer experience offerings. Prior to the acquisition, Zingle had raised $15 million from Crosscut Ventures, PeakSpan Capital and Rincon Venture Partners. Its annual revenue is estimated to be $6.9 million.

Earlier this week, Medallia announced the acquisition of idea and innovation platform Crowdicity for an undisclosed sum. Crowdicity helps organizations use real-time ideation and collaboration services to deliver improvements to customer and employee experiences. Medallia plans to integrate Crowdicity’s offerings into its Experience Cloud to fuel innovation and reduce time-to-market for improved business outcomes. Nottingham, UK-based Crowdicity was bootstrapped and its revenue is estimated to be $1 million.

Despite the string of acquisitions, Medallia’s stock is going through a tumultuous run. It is currently trading at $29.41 with a market capitalization of $3.6 billion. It has dropped significantly from the high of $44.62 that it had touched soon after listing. It had fallen to a low of $25.68 last month. Medallia had listed in July this year when it raised $326 million by selling stock at $21 apiece. At the time of listing, Medallia was valued at $2.5 billion and soon after, it had peaked to a valuation of $4.1 billion. Prior to the listing, Medallia had raised $325 million in funding from Sequoia, Wasatch Advisors, and RGM capital. It had reached a valuation of $1.25 billion in 2015.