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Lattice.com

To build engaged, high-performing teams by becoming the definitive platform for people success



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SWOT Analysis

6/3/25

Lattice's SWOT analysis reveals a company at a pivotal growth stage with strong fundamentals but facing intensifying competitive pressures. The company's core strengths - exceptional customer retention, integrated platform approach, and experienced leadership - provide a solid foundation for continued expansion. However, the window for market leadership is narrowing as Microsoft Viva and enterprise players strengthen their offerings. The most critical priorities are accelerating AI integration to maintain differentiation, expanding internationally to reduce domestic market saturation risks, building enterprise capabilities for larger deals, and deepening platform integrations to improve defensibility against competitive threats.

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To build engaged, high-performing teams by becoming the definitive platform for people success

Strengths

  • BRAND: Strong market recognition and thought leadership in HR tech space with 5000+ customer base and high NPS scores
  • PLATFORM: Integrated product suite reduces vendor fragmentation with performance, engagement, and OKR management in one solution
  • RETENTION: Industry-leading 90%+ customer retention rate demonstrates strong product-market fit and customer satisfaction
  • TALENT: Experienced leadership team with proven SaaS scaling experience from Salesforce, Zendesk, and Stripe backgrounds
  • GROWTH: Strong ARR growth trajectory approaching $150M with expanding mid-market and enterprise customer segments

Weaknesses

  • COMPETITION: Intense competition from well-funded players like Workday and BambooHR with deeper enterprise relationships
  • MARKET: Limited international presence and expansion compared to global competitors restricting total addressable market
  • PRICING: Price sensitivity in mid-market segment limiting expansion opportunities and average contract values
  • ENTERPRISE: Slower enterprise adoption due to feature gaps compared to traditional HRIS systems and compliance requirements
  • PROFITABILITY: Still approaching profitability while competitors have achieved sustainable unit economics at scale

Opportunities

  • AI: Massive opportunity to integrate AI for predictive analytics, personalized development, and automated insights generation
  • INTERNATIONAL: Significant untapped international markets with growing demand for modern people management solutions
  • ENTERPRISE: Large enterprise segment adoption accelerating with remote work driving need for better people analytics
  • INTEGRATION: API ecosystem expansion enabling deeper integrations with popular business tools and workflow automation
  • VERTICAL: Industry-specific solutions for healthcare, financial services, and other regulated industries with unique requirements

Threats

  • MICROSOFT: Microsoft Viva suite integration threat with existing Office 365 relationships and enterprise sales muscle
  • RECESSION: Economic downturn impact on HR tech spending with companies prioritizing cost reduction over people investments
  • CONSOLIDATION: Market consolidation by larger players like Workday acquiring competitors and building competing features
  • COMMODITIZATION: Performance management becoming commoditized feature in broader HRIS platforms reducing standalone value
  • REGULATION: Increasing data privacy and employment regulations creating compliance complexity and implementation costs

Key Priorities

  • ACCELERATE: AI integration across platform to maintain competitive differentiation and unlock predictive people analytics capabilities
  • EXPAND: International market expansion starting with English-speaking markets to diversify revenue and reduce domestic saturation risk
  • ENTERPRISE: Aggressive enterprise feature development and sales investment to capture larger deal sizes and market share
  • DEFEND: Strengthen platform stickiness through deeper integrations and expanded workflow automation to prevent churn
Lattice.com logo

OKR AI Analysis

6/3/25

This OKR plan strategically addresses Lattice's most critical growth imperatives while building sustainable competitive advantages. The AI acceleration objective positions Lattice ahead of commoditization trends, while international expansion reduces domestic market saturation risks. The enterprise focus captures higher-value deals essential for venture returns, and platform defense initiatives create switching costs that protect the customer base. Success requires disciplined execution across talent acquisition, product development, and sales organization scaling. The interconnected nature of these objectives creates multiplicative value - AI features enable enterprise wins, international expansion provides data diversity for better AI models, and platform stickiness supports all growth initiatives through improved unit economics.

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To build engaged, high-performing teams by becoming the definitive platform for people success

ACCELERATE AI

Build predictive people analytics platform capabilities

  • TALENT: Hire 12 AI/ML engineers and 3 data scientists by Q2 to build predictive analytics team
  • MODELS: Launch predictive turnover and performance models for 100+ customers with 80%+ accuracy
  • INSIGHTS: Deploy AI-powered people insights dashboard generating 50+ automated recommendations weekly
  • AUTOMATION: Release AI writing assistant for performance reviews used by 1000+ managers monthly
EXPAND GLOBAL

Enter international markets for revenue diversification

  • LAUNCH: Launch UK and Canada operations with localized product and 2 sales reps each market
  • REVENUE: Generate $2M ARR from international markets with 50+ new customers by Q2 end
  • COMPLIANCE: Achieve GDPR compliance and local data residency for European customer requirements
  • PARTNERS: Sign 3 international channel partners generating 20% of international pipeline
WIN ENTERPRISE

Capture large enterprise deals and market share

  • FEATURES: Ship enterprise security, advanced analytics, and API capabilities for 1000+ employee orgs
  • SALES: Close 25 enterprise deals over $100K ARV with average 18-month contract terms
  • TEAM: Build specialized enterprise sales team with 8 enterprise AEs and 4 sales engineers
  • INTEGRATIONS: Launch 10 new enterprise integrations including Workday, SAP, and Salesforce
DEFEND PLATFORM

Strengthen competitive moat through deeper integrations

  • API: Launch public API platform with 100+ third-party integrations and developer portal
  • WORKFLOWS: Build automated people workflow engine connecting Slack, Teams, and email systems
  • STICKINESS: Increase average customer usage to 85% monthly active users with 5+ features used
  • RETENTION: Maintain 92%+ gross revenue retention with expanded upsell and cross-sell programs
METRICS
  • Annual Recurring Revenue: $200M
  • Net Revenue Retention: 115%
  • Enterprise Deal Count: 25
VALUES
  • People First
  • Customer Obsession
  • Transparency
  • Continuous Growth
  • Authenticity
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Lattice.com Retrospective

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To build engaged, high-performing teams by becoming the definitive platform for people success

What Went Well

  • GROWTH: Strong ARR growth with expanding customer base and improving unit economics across all segments
  • RETENTION: Maintained industry-leading customer retention rates despite competitive pressure and economic uncertainty

Not So Well

  • ENTERPRISE: Slower than expected enterprise deal velocity and average contract value growth in competitive market
  • PROFITABILITY: Continued path to profitability taking longer than anticipated due to competitive sales and marketing investments

Learnings

  • MARKET: Mid-market segment showing more resilience than expected while enterprise buyers are more cautious and price-sensitive
  • COMPETITION: Need faster product innovation cycles to stay ahead of well-funded competitors entering the market

Action Items

  • SALES: Restructure enterprise sales organization with specialized reps and improved deal qualification processes
  • PRODUCT: Accelerate AI-powered features development to create stronger competitive differentiation in the market
Lattice.com logo

Lattice.com Market

  • Founded: 2015
  • Market Share: 5-7% of performance management market
  • Customer Base: 5,000+ companies, mid-market focus
  • Category:
    HR Technology
  • Location: San Francisco, CA
  • Zip Code: 94105
  • Employees: 800+ employees
Competitors
BambooHR logo
BambooHR
Workday logo
Workday
15Five logo
15Five
Culture Amp logo
Culture Amp
Greenhouse logo
Greenhouse
Products & Services
No products or services data available
Distribution Channels
Lattice.com logo

Lattice.com Business Model Analysis

Problem

  • Manual performance reviews
  • Low employee engagement
  • Disconnected HR tools

Solution

  • Automated performance management
  • Engagement surveys
  • Integrated people platform

Key Metrics

  • Annual Recurring Revenue
  • Customer retention rate
  • Net Promoter Score

Unique

  • Integrated platform approach
  • User-friendly design
  • Strong analytics capabilities

Advantage

  • Customer data network effects
  • Brand recognition
  • Platform integrations

Channels

  • Direct sales teams
  • Partner channel
  • Self-service trials

Customer Segments

  • Mid-market companies
  • Growing startups
  • Enterprise HR teams

Costs

  • Engineering development
  • Sales and marketing
  • Customer success teams

Lattice.com Product Market Fit Analysis

6/3/25

Lattice transforms how companies manage and develop their people through an integrated platform that combines performance management, employee engagement, and career development. Organizations using Lattice see 25% higher engagement, save managers 20 hours monthly on administrative tasks, and improve retention by 15%. Unlike fragmented point solutions, Lattice provides a unified experience that employees actually enjoy using while giving leaders the insights they need to build high-performing teams. With over 5,000 customers and 90% retention rates, Lattice has become the trusted partner for companies.

1

Increase employee engagement by 25%

2

Save 20 hours per manager monthly

3

Improve retention by 15%



Before State

  • Manual performance reviews
  • Disconnected HR tools
  • Low employee engagement

After State

  • Automated performance cycles
  • Integrated people platform
  • High employee engagement

Negative Impacts

  • Wasted management time
  • Poor talent retention
  • Unclear career paths

Positive Outcomes

  • 20% time savings
  • 15% better retention
  • Higher performance scores

Key Metrics

90%+ customer retention
NPS score 60+

Requirements

  • Executive buy-in
  • Change management
  • Training investment

Why Lattice.com

  • Phased rollout
  • Manager training
  • Continuous optimization

Lattice.com Competitive Advantage

  • Faster implementation
  • Better user adoption
  • Stronger analytics

Proof Points

  • 5000+ customers
  • 90% retention rate
  • Industry awards
Lattice.com logo

Lattice.com Market Positioning

What You Do

  • People management platform for performance and engagement

Target Market

  • Mid-market companies 100-5000 employees

Differentiation

  • Integrated platform approach
  • User-friendly design
  • Strong analytics

Revenue Streams

  • SaaS subscriptions
  • Professional services
  • Premium features
Lattice.com logo

Lattice.com Operations and Technology

Company Operations
  • Organizational Structure: Functional organization with product teams
  • Supply Chain: Cloud-based SaaS delivery model
  • Tech Patents: Proprietary performance algorithms
  • Website: https://lattice.com
Top Clients

Lattice.com Competitive Forces

Threat of New Entry

MEDIUM: Low technical barriers but high customer acquisition costs and established competitor relationships

Supplier Power

LOW: Cloud infrastructure commoditized with multiple providers and standard development tools reducing switching costs

Buyer Power

MEDIUM: Mid-market buyers have increasing options but switching costs create stickiness once implemented

Threat of Substitution

MEDIUM: Risk of broader HRIS platforms adding performance features or companies reverting to manual processes

Competitive Rivalry

HIGH: Intense competition from BambooHR, Workday, 15Five, and Microsoft Viva with significant R&D and marketing investments

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To build engaged, high-performing teams by becoming the definitive platform for people success

Strengths

  • DATA: Rich employee performance and engagement data provides strong foundation for AI model training and predictive analytics
  • PLATFORM: Integrated platform architecture enables AI features across performance, engagement, and development workflows seamlessly
  • FEEDBACK: Continuous feedback loops from performance reviews and surveys create robust datasets for machine learning applications
  • ANALYTICS: Existing analytics capabilities provide foundation to build advanced AI-powered insights and recommendations
  • SCALE: Large customer base provides diverse data sets and use cases for training effective AI models

Weaknesses

  • TALENT: Limited AI/ML engineering talent compared to tech giants building competing people analytics solutions
  • INFRASTRUCTURE: Cloud infrastructure may need upgrades to support compute-intensive AI workloads and real-time processing
  • PRIVACY: Employee data privacy concerns and regulations limit AI model training and cross-customer insights sharing
  • INVESTMENT: Significant R&D investment required for AI development while maintaining current product development velocity
  • EXPERTISE: Limited domain expertise in advanced AI techniques like natural language processing and predictive modeling

Opportunities

  • PREDICTIVE: Predictive analytics for employee turnover, performance, and career pathing could revolutionize people management
  • AUTOMATION: AI-powered automation of performance review writing, goal setting, and development recommendations
  • INSIGHTS: Advanced people analytics and benchmarking insights that competitors cannot easily replicate
  • PERSONALIZATION: Personalized employee development and engagement recommendations based on individual behavioral patterns
  • INTEGRATION: AI-powered integrations with communication tools for sentiment analysis and real-time feedback collection

Threats

  • MICROSOFT: Microsoft's AI capabilities through Azure and OpenAI partnership threatening to commoditize people analytics features
  • STARTUPS: AI-first HR tech startups building next-generation solutions without legacy platform constraints
  • PRIVACY: Increasing AI regulation and employee privacy concerns limiting data usage and model development
  • COMMODITIZATION: AI features becoming table stakes across all HR platforms reducing competitive differentiation
  • TALENT: Competition for AI talent from tech giants offering higher compensation and more advanced AI projects

Key Priorities

  • INVEST: Aggressive AI talent acquisition and R&D investment to build predictive analytics and automation capabilities
  • PARTNER: Strategic partnerships with AI companies to accelerate capability development and reduce time to market
  • PRIVACY: Proactive privacy-first AI development to build trust and competitive advantage in regulated markets
  • DIFFERENTIATE: Focus AI development on unique people management use cases that leverage Lattice's integrated platform
Lattice.com logo

Lattice.com Financial Performance

Profit: Approaching profitability (2024 estimate)
Market Cap: Private company valuation $3B+
Annual Report: Private company - limited disclosure
Debt: Venture-backed with minimal debt
ROI Impact: Customer lifetime value optimization
DISCLAIMER

This report is provided solely for informational purposes by SWOTAnalysis.com, a division of Alignment LLC. It is based on publicly available information from reliable sources, but accuracy or completeness is not guaranteed. AI can make mistakes, so double-check it. This is not financial, investment, legal, or tax advice. Alignment LLC disclaims liability for any losses resulting from reliance on this information. Unauthorized copying or distribution is prohibited.

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