Douglas Clark, Wilson Sonsini. (Courtesy photo)

Buoyed by a strong year for deals and continuing work for established and emerging technology companies, revenue at Wilson Sonsini Goodrich & Rosati reached $961 million in 2019, representing a 12% increase and putting the Palo Alto-founded firm on track to cross the billion-dollar mark in 2020.

The firm saw smaller gains in profits per equity partner, which rose 3% to $2.24 million, and revenue per lawyer, up 1.9% to $1.14 million.

Net income was up 8.6% to $334 million, with the gains spread across a larger partnership: Partner head count was up 10%, including a net gain of seven equity partners to 138. Overall head count was also up 10%, to 842 lawyers.

"It was a great year for us, a year where we had increased demand across a number of areas," Douglas Clark, managing partner at Wilson Sonsini, said. "We saw growth in all aspects of our business. This is the second year in a row where we had thorough growth."

Unsurprisingly for Wilson Sonsini, tech and startup-related work were powerful drivers for revenue growth. Clark said the firm last year handled 850 venture financings and 19 IPOs, including the initial public offerings for ride hailing company Lyft and medical device company Silk Road Medical.

He also said that M&A work was a boon for the firm in 2019, as it advised on 160 deals worth around $90 billion.

The firm has continued that momentum into 2020, with Wilson Sonsini handling Visa's acquisition of fintech company Plaid in January as well as the sale of cybersecurity company Forescout Technologies to private equity companies Advent International and Crosspoint Capital in February.

Clark said that none of the firm's practices underperformed to expectations in 2019. And the firm has been adding practice areas.

He said that the newest entry, an appellate practice headed by Michael McConnell, who joined the firm after leaving Kirkland & Ellis in May 2019, is off to a strong start.

"That team has done a great job integrating with our existing client base," Clark said.

Clark said that the firm is also continuing to see a lot of patent, antitrust and First Amendment work from one of its major clients, Google.

Reviewing the firm's growth, Clark noted that it invested "heavily in technology and in our business," which accounted for PEP lagging revenue gains.

"We hired 13 laterals and grew on the associate side as well," Clark said. "We invested in the infrastructure of the firm. Last year we invested more in technology than we typically do, but nothing outside of industry trends."

Part of that investment was the February 2019 launch of a subsidiary software company called SixFifty that aims to "develop automated tools designed to make legal processes efficient and affordable." The company released its first product, a California Consumer Privacy Act compliance tool called SixFifty Privacy, in May 2019.

The firm and SixFifty also teamed up with Brigham Young University's J. Reuben Clark Law School students to design and produce a program that will simplify the asylum application process in the U.S.

"This will help people who feel disenfranchised by the justice system," Clark said.

With regard to potential expansion, Clark said the firm grows where driven by client demand, such as its opening of an office in the U.K. in 2018.

"We have constructed our national and international map to correspond to client demand," Clark said. "I don't anticipate any new locations in the next year. We are going to focus on organic and strategic growth in the places we are."

He said that the firm has not seen a drawdown in business because of the U.K.'s pending exit from the European Union, saying that the technology sector hasn't really been affected as much as some other industries.

"We were never all that concerned about Brexit from a client base perspective," Clark said. "We weren't entirely sanguine about it, but we added a partner there and are growing."

On top of the 13 laterals Wilson Sonsini took on last year, the firm had 16 promotions to partner. More than half of those were women, Clark said.

"This firm has always been one of the most diverse in the world," he said. "We are mindful of the life cycle [that moves attorneys from associate to partner] and are upping our efforts."

Clark said the firm hosted its first diversity summit last year and also has made strides in dealing with unconscious bias at the firm.

Overall, Clark said the firm was excited about what awaits in 2020—while being realistic about political and economic factors that could influence the firm's bottom line.

"We are excited about the year ahead and are off to a strong start," Clark said. "We believe we will have continued strength in our transactional and regulatory practices. It looks a lot like the last couple of years. There are global and macro risks we are mindful of. Whether it is trade wars or viruses, we are mindful."

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