UserTesting and UserZoom are two of the leading providers of remote user research and usability testing software. Both companies offer solutions to help businesses understand how real users interact with their websites, apps, and other digital products.
In 2022, there were rumors that UserTesting was acquiring UserZoom in a major acquisition deal. This led many in the user research and UX communities to ask: Did UserTesting actually buy UserZoom?
About UserTesting
UserTesting is a software company founded in 2007 and headquartered in San Francisco, California. The company offers on-demand human insight to help businesses make better customer-focused decisions.
UserTesting pioneered the concept of remote user testing. Their platform allows companies to get videos of real people sharing their thoughts as they use websites, apps, and prototypes. Customers can access UserTesting’s global network of testers and get results fast.
Some key facts about UserTesting:
– Founded in 2007 in San Francisco
– Went public in 2021, trades on NYSE under symbol USER
– Over 1,900 global employees
– Customers include Google, Facebook, Disney, Microsoft and over half of the world’s top 100 brands
– Raised $200 million USD in Series F funding in 2020
UserTesting aims to help any company build better digital experiences by connecting them to real people using their product or service. Their Human Insight Platform makes it easy to capture diverse perspectives from target audiences.
About UserZoom
UserZoom is another leading provider of remote user research and usability software. Founded in 2007, the company is headquartered in San Jose, California.
UserZoom specializes in remote moderated testing. Their platform lets UX researchers recruit test participants, conduct live test sessions, analyze findings, and share results. Companies use UserZoom to gain empathy and see their products through the eyes of customers.
Some key facts about UserZoom:
– Founded in 2007 in Barcelona, Spain and headquartered in San Jose, California
– 345 global employees
– Customers include Google, Microsoft, Samsung, Ikea, and Audi
– Raised $100 million USD in Series C funding in 2019
Like UserTesting, UserZoom aims to help companies optimize product experiences to drive better business outcomes. Their focus is on moderated testing with personalized qualitative insights.
Acquisition Rumors
In April 2022, rumors began circulating in the user research community that UserTesting was acquiring UserZoom.
On April 19, 2022, the website UX Matters published an article with the headline “UserTesting Acquires UserZoom” (1). The article reported that UserTesting had reached an agreement to acquire UserZoom for approximately $600 million. It cited an anonymous source within UserZoom.
The UX Matters article set off a flurry of reactions across social media and discussions on industry blogs. However, no official announcement came from either UserTesting or UserZoom in the following days.
On April 25, 2022, UserTesting’s CEO Andy MacMillan responded to the acquisition rumors in an interview with TechCrunch (2).
MacMillan stated that the rumors were false and UserTesting had not acquired UserZoom. He reiterated that UserTesting was not in discussions to acquire the company.
Expert Analysis on Why the Rumor Spread
Despite the acquisition rumor being debunked by UserTesting, many in the user research community wondered how the false report gained traction.
Industry experts provided several perspectives on why the UserTesting-UserZoom acquisition rumor seemed highly believable:
– **Product similarities**. UserTesting and UserZoom offer similar remote user research software and target the same customer profile. An acquisition could have accelerated UserTesting’s entry into moderated testing.
– **Recent IPO**. UserTesting went public in November 2021. Newly public companies often make acquisitions to fuel growth.
– **Active M&A space**. The user research and customer insights industry has seen significant merger and acquisition activity. In 2021, UserTesting acquired Teston while UserZoom acquired EnjoyHQ.
– **Report specifics**. The original UX Matters article provided specific details like the rumored $600 million price tag and anonymous insider source. This added credibility.
While the UserZoom acquisition rumor turned out to be unfounded, the analysis helps explain how the story gained belief within the UX community. The market landscape made the rumored deal seem highly plausible before being refuted.
UserTesting’s Acquisition History
Although UserTesting did not acquire UserZoom, the company has made other strategic acquisitions to grow its human insight platform.
Here is a timeline of UserTesting’s major acquisitions over the years:
Year | Acquisition Target |
---|---|
2014 | Unlimited Research |
2015 | Userlytics |
2017 | TryMyUI |
2021 | Teston |
Some details on UserTesting’s key acquisitions:
– **Unlimited Research** – Provider of international remote user research. Expanded UserTesting’s access to global panelists.
– **Userlytics** – Mobile analytics and usability testing firm. Broadened device testing capabilities.
– **TryMyUI** – Remote user research platform focused on unmoderated testing. Grew reach with small and mid-sized businesses.
– **Teston** – Copenhagen-based unmoderated testing platform. Extended European presence.
Through strategic acquisitions, UserTesting has expanded its remote user research toolkit and geographic footprint.
UserZoom’s Acquisition History
Like UserTesting, UserZoom has also made acquisitions to enhance its human insights platform and accelerate growth:
Year | Acquisition Target |
---|---|
2019 | Userlytics |
2021 | EnjoyHQ |
Details on UserZoom’s major acquisitions:
– **Userlytics** – Mobile analytics and remote user testing company. Expanded mobile capabilities.
– **EnjoyHQ** – Feedback management software. Added new listening tools for customer insights.
UserZoom’s acquisitions demonstrate a strategic focus on expanding its research toolkit for customers. The company is enhancing both qualitative and quantitative solutions for generating human insights.
Industry Outlook for More M&A Activity
While UserTesting did not acquire UserZoom, industry experts predict more merger and acquisition activity is on the horizon in the user research and customer insights sector.
Some driving factors behind expected M&A growth:
– **Maturing market** – As the remote testing industry matures, consolidation is expected among top players.
– **Global demand** – More businesses worldwide want on-demand access to user insights to drive better product design and CX. This creates opportunities for leading testing platforms to expand through M&A.
– **New technologies** – Demand for emerging methodologies like digital diaries, facial coding, and eye tracking could drive acquisitions.
– **Pandemic impact** – The pandemic accelerated adoption of remote research. This has increased investor interest in category leaders looking to grow through M&A.
With these sector dynamics, analysts anticipate robust M&A deal activity in coming years as top testing platforms seek new ways to generate human insights. Any future deals will significantly impact the competitive landscape.
Conclusion
In summary, while UserTesting did not acquire UserZoom in 2022 as rumored, the deal seemed highly plausible given industry conditions. Both companies are category leaders who have made strategic acquisitions to grow their human insight platforms.
With demand for remote testing solutions surging worldwide, analysts expect more merger and acquisition activity between top players in coming years. This will likely include additional acquisitions by both UserTesting and UserZoom as the market consolidates.
Although the UserZoom rumor proved false, it reflects the accelerated pace of change within the user research and usability testing industry. Companies across sectors are hungry for more on-demand customer insights to build better digital experiences. This appetite will continue to fuel innovation and consolidation between leading testing providers.