<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                              ---------------------
                                    FORM 10-Q
                              ---------------------

                                   (MARK ONE)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

      FOR THE TRANSITION PERIOD FROM ________________ TO __________________

                         COMMISSION FILE NUMBER 0-26161

                          INTERACT COMMERCE CORPORATION
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

<TABLE>
<S>                                                            <C>
                    DELAWARE                                                86-0808340
(STATE OR OTHER JURISDICTION OF INCORPORATION OR               (I.R.S. EMPLOYER IDENTIFICATION NO.)
                  ORGANIZATION)
</TABLE>

       8800 N. GAINEY CENTER DRIVE, SUITE 200, SCOTTSDALE, ARIZONA 85258
              (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

                                 (480) 368-3700
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.      Yes [ X ] No [ ]

As of April 30, 2000, there were 19,622,839 outstanding shares of Common Stock,
par value $.001 per share, of Interact Commerce Corporation.
<PAGE>   2
              INTERACT COMMERCE CORPORATION AND SUBSIDIARIES INDEX

<TABLE>
<CAPTION>
                                                                                                               Page

<S>                                                                                                           <C>
PART I.  FINANCIAL INFORMATION .............................................................................      1


              ITEM 1.      FINANCIAL STATEMENTS ............................................................      1

                           INTERACT COMMERCE CORPORATION AND SUBSIDIARIES CONDENSED
                                    CONSOLIDATED BALANCE SHEETS ............................................      1

                           INTERACT COMMERCE CORPORATION AND SUBSIDIARIES CONDENSED
                                    CONSOLIDATED STATEMENTS OF OPERATIONS ..................................      2

                           INTERACT COMMERCE CORPORATION AND SUBSIDIARIES CONDENSED
                                    CONSOLIDATED STATEMENTS OF CASH FLOWS ..................................      3

                           INTERACT COMMERCE CORPORATION AND SUBSIDIARIES NOTES TO
                                    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ............................      4

                           NOTE 1.  BASIS OF PRESENTATION ..................................................      4

                           NOTE 2.  ACQUISITION ............................................................      4

                           NOTE 3.  EARNINGS PER SHARE .....................................................      6

                           NOTE 4.  NEW PRONOUNCEMENTS .....................................................      6

                           NOTE 5.  SEGMENT INFORMATION ....................................................      6

                           NOTE 6.  SUBSEQUENT EVENT .......................................................      7


              ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                                    AND RESULTS OF OPERATIONS ..............................................      8

                           OVERVIEW ........................................................................      8

                           RESULTS OF OPERATIONS ...........................................................     10

                           LIQUIDITY AND CAPITAL RESOURCES .................................................     13

                           YEAR 2000 COMPLIANCE ............................................................     14


              ITEM 3.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ......................     15

PART II  OTHER INFORMATION .................................................................................     16


              ITEM 1.      LEGAL PROCEEDINGS ...............................................................     16


              ITEM 2.      CHANGES IN SECURITIES AND USE OF PROCEEDS .......................................     16


              ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS .............................     16


              ITEM 6.      EXHIBITS AND REPORTS ON FORM 8-K ................................................     17

SIGNATURES .................................................................................................     18
</TABLE>

                                       i
<PAGE>   3
PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                 INTERACT COMMERCE CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (IN THOUSANDS, EXCEPT SHARE DATA)

<TABLE>
<CAPTION>
                                                                              MARCH 31,      DECEMBER 31,
                                                                                2000            1999
                                                                                ----            ----
                              ASSETS                                         (Unaudited)
<S>                                                                          <C>             <C>
Current assets:                                                              $  54,566       $  60,795
     Cash and cash equivalents
     Accounts receivable, net of allowance for doubtful accounts of             11,819          12,609
        $1,123 and $1,064 at March 31, 2000 and at December 31, 1999,
        respectively
     Due from Symantec Corporation                                              11,651           5,609
     Prepaid expenses and other current assets                                   2,258           2,953
                                                                             ---------       ---------
         Total current assets                                                   80,294          81,966

Property and equipment, net                                                     12,673           9,707
Intangible assets                                                               67,172          72,049
Other assets                                                                     1,805           1,161
                                                                             ---------       ---------
                                                                             $ 161,944       $ 164,883
                                                                             =========       =========
</TABLE>

                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
Current liabilities:
<S>                                                                          <C>             <C>
     Accounts payable                                                        $   5,913       $   5,287
     Accrued expenses                                                            5,491           3,143
     Due to Symantec Corporation                                                 3,545              --
     Current portion of capital lease obligations                                1,021           1,083
     Current portion of long-term debt                                          14,068          11,775
     Deferred revenues                                                           9,091          10,800
                                                                             ---------       ---------
         Total current liabilities                                              39,129          32,088

Capital lease obligations, less current portion                                  2,154           2,264
Long-term debt, less current portion                                            56,734          55,107
Deferred rental obligation                                                         106             106

Stockholders' equity:
     Preferred Stock, authorized 20,000,000 shares, no shares issued or
         outstanding at March 31, 2000 or December 31, 1999                         --              --
     Class A Common Stock, par value $0.001 per share; 50,000,000
         shares authorized, 19,567,736 and 19,348,791 shares issued
         outstanding at March 31,2000 and December 31, 1999,
         respectively                                                               20              19
     Additional paid-in capital                                                103,188         102,816
     Accumulated deficit                                                       (37,006)        (24,883)
     Foreign currency translation adjustment                                        (5)             --
     Unearned compensation                                                      (2,376)         (2,634)
                                                                             ---------       ---------
Total stockholders' equity                                                      63,821          75,318
                                                                             ---------       ---------
Total liabilities and stockholders' equity                                   $ 161,944       $ 164,883
                                                                             =========       =========
</TABLE>

                             See accompanying notes

                                       1
<PAGE>   4
                 INTERACT COMMERCE CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (in thousands, except per share data; unaudited)

<TABLE>
<CAPTION>
                                                                       THREE MONTHS ENDED
                                                                            MARCH 31,
                                                                            ---------
                                                                       2000           1999
                                                                       ----           ----
<S>                                                                  <C>            <C>
Revenues:
     Licenses                                                        $ 17,171       $  4,225
     Services                                                           4,597          2,077
                                                                     --------       --------
         Total revenues                                                21,768          6,302
                                                                     --------       --------

Costs of revenues:
     Licenses                                                           1,973            332
     Services                                                           3,732          1,351
                                                                     --------       --------
         Total costs of revenues                                        5,705          1,683
                                                                     --------       --------

Gross profit                                                           16,063          4,619

Operating expenses:
     Sales and marketing                                               12,513          3,595
     Research and development                                           5,187          1,286
     General and administrative                                         2,265            587
     Amortization of acquisition related intangible assets              5,028            279
                                                                     --------       --------
         Total operating expenses                                      24,993          5,747
                                                                     --------       --------

Loss from operations                                                   (8,930)        (1,128)
Other income (expense):
     Interest income                                                      789            106
     Interest expense                                                    (927)           (59)
     Accretion of discount on long-term debt                           (3,055)            --
                                                                     --------       --------
Loss before provision for income taxes                                (12,123)        (1,081)
Provision for income taxes                                                 --             --
                                                                     --------       --------
Net loss                                                             $(12,123)      $ (1,081)
                                                                     ========       ========
Historic basic and diluted net loss per share                        $  (0.62)      $  (0.31)
                                                                     ========       ========
Pro forma basic and diluted net loss per share                       $  (0.62)      $  (0.08)
                                                                     ========       ========

Weighted average shares used in calculating historic basic and
     diluted net loss per share                                        19,444          3,443
                                                                     ========       ========

Weighted average shares used in calculating pro forma basic and
     diluted net loss per share                                        19,444         13,488
                                                                     ========       ========
</TABLE>

                             See accompanying notes.

                                       2
<PAGE>   5
                 INTERACT COMMERCE CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (in thousands; unaudited)

<TABLE>
<CAPTION>
                                                                        THREE MONTHS ENDED
                                                                             MARCH 31,
                                                                             ---------
                                                                         2000          1999
                                                                         ----          ----
OPERATING ACTIVITIES
<S>                                                                   <C>            <C>
Net loss                                                              $(12,123)      $ (1,081)
Adjustments to reconcile net loss to net cash used in operating
     activities:
     Depreciation, including amortization of leased assets               1,017            343
     Amortization of acquisition related intangible assets               5,028            279
     Noncash interest and accretion of debt discount                     3,920             --
     Provision for losses on accounts receivable                           770            245
     Amortization of unearned compensation                                 108            115
     Changes in operating assets and liabilities, net of effects
         from acquisitions:
       Accounts receivable                                                  19         (1,783)
       Due to/from Symantec Corporation                                 (2,497)            --
       Prepaid expenses and other current assets                           694           (784)
       Accounts payable                                                    626            537
       Accrued expenses                                                  2,348            145
       Deferred revenue                                                 (1,709)           743
                                                                      --------       --------
Net cash used in operating activities                                   (1,799)        (1,241)
                                                                      --------       --------

INVESTING ACTIVITIES
Purchases of property and equipment                                     (3,983)          (588)
Increase in other assets                                                  (644)            --
                                                                      --------       --------
Net cash used in investing activities                                   (4,627)          (588)

FINANCING ACTIVITIES
Repayment of bank term loan                                                 --            (98)
Principal payments under capital lease obligations                        (172)          (141)
Proceeds from exercise of common stock options                             374             45
                                                                      --------       --------
Net cash provided by (used in) financing activities                        202           (194)
                                                                      --------       --------
Net decrease in cash and cash equivalents                               (6,224)        (2,023)
Effect of exchange rate changes on cash                                     (5)            --
Cash and cash equivalents, beginning of period                          60,795         11,377
                                                                      --------       --------
Cash and cash equivalents, end of period                              $ 54,566       $  9,354
                                                                      ========       ========

Supplemental Cash Flow Information
Assets acquired under capital lease obligations                       $     --       $     22
                                                                      ========       ========
Cash paid for interest                                                $     33       $     59
                                                                      ========       ========
</TABLE>

                             See accompanying notes.

                                       3
<PAGE>   6
                 INTERACT COMMERCE CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1.  BASIS OF PRESENTATION

         Interact Commerce Corporation ("the Company") is a leading provider of
front office and e-commerce software for individuals, small businesses and
mid-market companies. The Company's products create interactive selling
networks that streamline prospect and customer interactions and dynamically
connect mobile sales, internal telesales, third-party reseller, marketing and
support organizations. Prior to April 26, 2000, the Company was known as
SalesLogix Corporation.

     The accompanying unaudited condensed consolidated financial statements of
the Company have been prepared on substantially the same basis as the Company's
audited annual consolidated financial statements and, in the opinion of
management, include all adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation of its financial position,
results of operations and cash flows. The results of operations for the three
months ended March 31, 2000, are not necessarily indicative of the results to be
expected for the year ending December 31, 2000. Certain information and footnote
disclosures normally contained in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
These condensed consolidated financial statements should be read in conjunction
with the Notes to Consolidated Financial Statements contained in our Annual
Report on Form 10-K filed with the Securities and Exchange Commission.

NOTE 2.  ACQUISITIONS

         On December 31, 1999, the Company acquired the ACT! product line and
related business from Symantec Corporation pursuant to an agreement dated
December 6, 1999, as amended and closed on December 31, 1999. Under the terms of
the agreement, we acquired an exclusive, worldwide license to ACT! and an option
to purchase the product line at the end of the four year license term for an
aggregate purchase price of $60.0 million in cash, plus 623,247 shares of
SalesLogix common stock valued at $20.0 million. The Company is accounting for
the transaction using the purchase method of accounting. Amounts due to Symantec
are based on a contractual formula and are subject to maximums of $5.0 million
per quarter in 2000, $4.25 million per quarter in 2001, $2.75 million per
quarter in 2002, and $2.25 million per quarter in 2003. The maximum quarterly
payment amounts total $57.0 million, and the Company believes the limits will be
reached in each quarter during the four year term of the agreement. The final
payment is equal to $60.0 million less amounts previously paid. The cash portion
of the purchase price has been discounted at 22.4% to reflect the Company's
incremental borrowing rate in a simultaneous third party borrowing transaction.
The Company has also assumed certain deferred revenue obligations for which
Symantec will provide reimbursement.


                                       4
<PAGE>   7
NOTE 3.  EARNINGS PER SHARE

         Earnings per share is computed in accordance with SFAS No. 128,
"Earnings per Share" as well as Staff Accounting Bulletin No. 98, which covers
the determination of and accounting for "cheap stock" in periods prior to an
initial public offering. Basic earnings per share is computed using the weighted
average number of common shares. Diluted earnings per share is computed using
the weighted average number of common share equivalents outstanding during the
period. Dilutive common share equivalents consist of stock options and warrants
using the treasury method and dilutive convertible securities using the
if-converted method.

         Pro forma net loss per share presented in the consolidated statements
of operations has been computed as described above, but also gives effect to the
conversion of all outstanding shares of convertible preferred stock into common
stock upon the closing of the Company's initial public offering (determined
using the if-converted method).

NOTE 4.  NEW PRONOUNCEMENTS

         In June 1998, Financial Accounting Standards Board issued Statement No.
133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS 133).
The Company adopted SFAS 133 on January 1, 2000. SFAS 133 requires the Company
to recognize all derivatives on the balance sheet at fair value. The adoption of
SFAS 133 did not have a significant effect on its results of operations or
financial position.

NOTE 5.  SEGMENT INFORMATION

         Prior to January 1, 2000, the Company operated as a single business
segment. Beginning on January 1, 2000, the Company manages its business as two
segments, software and Internet. The software segment includes the Company's
traditional SalesLogix products for sales, support, and configuration and the
ACT! software products acquired on December 31, 1999. The Internet segment
includes the Company's new Interact.com business. The Company evaluates
performance based on profit or loss before charges for amortization of
acquisition related intangible assets and net interest costs. Segment
information is as follows for the three months ended March 31, 2000.

<TABLE>
<CAPTION>
                                                                 Segment
                                            Revenues          Profit (Loss)
                                         -------------------------------------
                                                    (in thousands)
                                         -------------     -------------------
<S>                                      <C>               <C>
                       Software               $21,768                    $428
                       Internet                    --                  (4,330)
                                         -------------     -------------------
                       Total                  $21,768                  (3,902)
                                         =============     ===================
</TABLE>

Total segment profit (loss) reconciles to consolidated loss before taxes for the
three months ended March 31, 2000 as follows:

<TABLE>
<S>                                           <C>
Total segment profit (loss)                          $  (3,902)
Amounts not allocated to segments:
   Amortization of acquisition related
     intangible assets                                  (5,028)
     Interest income                                       789
     Interest expense                                   (3,982)
                                              -----------------
Net loss                                             $ (12,123)
                                              =================
</TABLE>

                                       6
<PAGE>   8
         The Company licenses and markets its products through direct and
indirect channels North America (United States and Canada), EMEA (Europe, Middle
East, and Africa) and Asia-Pacific (Australia and Asia). Information regarding
revenues in different geographic regions is as follows:

<TABLE>
<CAPTION>
                     THREE MONTHS ENDED
                          MARCH 31,
                          ---------
                      2000         1999
                      ----         ----
                       (in thousands)
<S>                 <C>          <C>
North America       $18,289      $ 5,422
International         3,479          880
                    -------      -------

Total revenues      $21,768      $ 6,302
                    =======      =======
</TABLE>

NOTE 6.  SUBSEQUENT EVENT

         On April 27, 2000, the Company entered into a $4,000,000 revolving line
of credit agreement with a bank. Borrowings under the line will bear interest at
the bank's prime rate plus .50% and are secured by substantially all of the
Company's assets.

                                       7
<PAGE>   9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

         Certain statements in this Form 10-Q contain forward-looking statements
based upon current expectations that involve risks and uncertainties, such as
our plans, objectives, expectations and intentions. Forward-looking statements
can be identified by their use of such verbs as "expects," "anticipates," and
"believes" or similar verbs or conjugations of such verbs. If any of our
assumptions on which the statements are based prove incorrect or should
unanticipated circumstances arise, our actual results could differ materially
from those anticipated by such forward-looking statements. In addition, our
actual results and the timing of events could differ materially from those
anticipated in these forward-looking statements as a result of a number of
factors, including those set forth under "Risk Factors," "Business" and
elsewhere in our Securities and Exchange Commission filings, including our
Annual Report on Form 10-K for the year ended December 31, 1999.

OVERVIEW

         Interact Commerce Corporation ("the Company") is the leading provider
of applications and services that streamline selling processes for individuals
and enable collaborative selling networks for companies, customers and partners.
These solutions manage interactions between sellers and customers, such as
inquiries coming in over the web, online orders, outbound calls, support,
e-mails, letters, and customer meetings. By integrating personal computer (PC)
and wireless device-based applications seamlessly with Internet services,
without forcing redundant data entry in Internet portals or eliminating the
ability to work offline, interactive selling communities that are familiar and
easy to use are created. These interactive selling networks dynamically share
information between community members; connect their e-business sales and
customer management applications with valuable Internet content and services;
and automatically manage selling transactions.

         Prior to April 26, 2000, the Company was known as SalesLogix
Corporation. The Company was incorporated in September 1995 and commenced
operations in January 1996. From January 1996 until April 1997, our operating
activities related primarily to research and development and the initial
development of our independent business partner channel. In April 1997, we
released the first commercial version of SalesLogix, our client-server based
sales automation solution.

         In December 1997, we acquired Opis Corporation, a company engaged in
the development, marketing, and selling of customer support software primarily
to mid-sized organizations. We paid $801,559 in cash, issued 1,228,654 shares of
Series D convertible preferred stock and granted options to purchase 96,836
shares of Series D convertible preferred stock. The transaction was recorded
under the purchase method of accounting and the results of operations of Opis
and the fair value of the assets acquired and liabilities assumed were included
in our consolidated financial statements beginning on the acquisition date. In
connection with this acquisition, we recorded $5.9 million in capitalized
technology and other intangible assets that are being amortized over periods of
up to five years.

         In April 1999, we acquired Enact Incorporated in a merger transaction.
Enact was a privately-held provider of sales configuration software for managing
product catalogs and marketing encyclopedias and generating proposals, quotes
and orders. In connection with the Enact acquisition, we issued 609,424 shares
of our common stock, of which 201,893 shares are restricted subject to three
year monthly vesting based upon the continued employment of officers of Enact.
We paid $4.2 million in cash for merger consideration, plus transaction expenses
and repayment of Enact's debt. We also entered into employment agreements with
officers of Enact in connection with the acquisition. The transaction was
recorded under the purchase method of accounting and the results of operations
of Enact and the fair value of the assets acquired and liabilities assumed are
included in our consolidated financial statements

                                        8
<PAGE>   10
beginning on April 30, 1999. In connection with this acquisition, we recorded
approximately $8.8 million in capitalized technology and other intangible assets
that will be amortized over three years, and expensed approximately $900,000 of
in-process research and development based upon an independent appraisal.

         Through December 31, 1999, we derived revenues principally from the
sale of software licenses for our SalesLogix line of products and related fees
for maintenance, technical support, consulting and training services. We market
and sell our products primarily through our business partners and to a lesser
extent through our direct sales force. We expect that a substantial majority of
our license revenues will continue to be generated from sales to our business
partners. The contractual arrangements we enter into with our business partners
provide for license fees payable to us based upon a percentage of our list
price.

         We sell our SalesLogix line of products under perpetual licenses and
recognize license revenues when all of the following conditions are met: an
executed license agreement, unconditional purchase order or contract has been
received; the product has been delivered to the customer; collection of the
receivable is deemed probable; and the fee is fixed or determinable based upon
vendor specific objective elements of the arrangements. Maintenance and
technical support revenues are recognized ratably over the contract term,
typically one year. Revenues for consulting and training services are recognized
as such services are provided.

         On December 31, 1999, we acquired the ACT! product line and related
business from Symantec Corporation pursuant to an agreement dated December 6,
1999, as amended and closed on December 31, 1999. Under the terms of the
agreement, we acquired an exclusive, worldwide license to ACT! and an option to
purchase the product line at the end of the four year license term for an
aggregate purchase price of $60.0 million in cash, plus 623,247 shares of
SalesLogix common stock valued at $20.0 million. The transaction was recorded
under the purchase method of accounting and the results of operations of ACT!
and the fair value of the assets acquired and liabilities assumed are included
in our consolidated financial statements beginning on December 31, 1999. In
connection with this acquisition, we recorded approximately $61.9 million in
capitalized technology and other intangible assets that will be amortized over
four years. The cash portion of the purchase price has been discounted at 22.4%
to reflect the Company's borrowing rate in a simultaneous third party
transaction.

         ACT! is a shrink-wrapped product that is sold through a two-tier retail
distribution channel. We recognize ACT! revenue upon persuasive evidence of an
arrangement, delivery of software to the customer, determination that there are
no significant post-delivery obligations, and a probable collection of a fixed
or determinable fee. Product revenue related to all distribution channel
inventory in excess of defined in inventory levels in such channels will be
deferred. Revenue related to significant post-contract support agreements
(generally product maintenance and upgrade insurance) will be deferred and
recognized over the period of the arrangement.

         On December 31, 1999, we received net proceeds of $25.9 million from
the sale of senior subordinated debt. We paid a 1% commitment fee on the
subordinated debt and issued warrants to purchase 841,107 shares of our common
stock at $28.75 per share to the lenders. The fair value of these warrants,
determined using the Black Scholes method, as well as the commitment fee, have
been recorded as a discount to the debt and will be amortized to interest
expense using the interest method over the term of the loan. The first two
interest payments may be made "in kind" by increasing the principal balance by
the amount of interest due. The effective interest rate on the subordinated
debt, including amortization of this discount, is 22.4%.

         In December 1999, we announced the development of Interact.com. When
released, Interact.com will provide fully Web-enabled interaction between
Interact and our ACT! and SalesLogix applications. The combination will offer
relevant e-business services in-context of application used for contact,

                                       9
<PAGE>   11
account, and opportunity management. We believe these combinations enable
interactive selling network solutions for individuals, organizations of any
size, and vertical communities.

RESULTS OF OPERATIONS

         The following table sets forth, as a percentage of total revenue,
statement of operations data for the periods indicated. We believe that
period-to-period comparisons of our operating results are not indicative of
results for any future period.

<TABLE>
<CAPTION>
                                                                PERCENTAGE OF TOTAL REVENUES
                                                                ----------------------------
                                                                     THREE MONTHS ENDED
                                                                         MARCH 31,
                                                                         ---------
                                                                     2000         1999
                                                                     ----         ----
<S>                                                                <C>          <C>
Revenues:
     Licenses                                                        78.9%        67.0%
     Services                                                        21.1%        33.0%
                                                                   ---------    ---------

         Total revenues                                             100.0%       100.0%

Costs of revenues:
     Licenses                                                         9.1%         5.3%
     Services                                                        17.1%        21.4%
                                                                   ---------    ---------

         Total costs of revenues                                     26.2%        26.7%
                                                                   ---------    ---------

Gross profit                                                         73.8%        73.3%
Operating expenses:
     Sales and marketing                                             57.5%        57.1%
     Research and development                                        23.8%        20.4%
     General and administrative                                      10.4%         9.3%
     Amortization of acquisition related intangible assets
                                                                     23.1%         4.4%
                                                                   ---------    ---------
         Total operating expenses                                   114.8%        91.2%
                                                                   ---------    ---------
Loss from operations                                                (41.0)%      (17.9)%
Interest and other income (expense), net                            (14.7)%        0.7%
                                                                   ---------    ---------

Net loss                                                            (55.7)%      (17.2)%
                                                                =========    =========
</TABLE>

Revenues

         Total revenues increased from $6.3 million in the three months ended
March 31, 1999 to $21.8 million in the three months ended March 31, 2000, an
increase of 245%. No customer accounted for more than 10% of revenues in the
three months ended March 31, 1999 or 2000. Our revenues outside of North America
increased from approximately $880,000 in the three months ended March 31, 1999
to approximately $3.5 million in the three months ended March 31, 2000.

         License Revenues. Our license revenues increased from $4.2 million in
the three months ended March 31, 1999 to $17.2 million in the three months ended
March 31, 2000, an increase of 306%. License revenues for the three months ended
March 31, 2000 include ACT! revenues since December 31, 1999, the date of
closing. The increase in license revenues was due primarily to the acquisition
of ACT!

                                       10
<PAGE>   12
Excluding ACT!, the increase was due primarily to increases in the size
and productivity of our business partner network, increased market awareness and
acceptance of our products and the growth of our direct sales force. License
revenues represented 67.0% and 78.9% of our total revenues for the three months
ended March 31, 1999 and 2000, respectively.

         Service Revenues. Service revenues include fees for maintenance,
technical support, consulting and training services. Our service revenues
increased from $2.1 million in the three months ended March 31, 1999 to $4.6
million in the three months ended March 31, 2000, an increase of 121%. Service
revenues for the three months ended March 31, 2000 include ACT! revenues since
December 31, 1999, the date of closing. The increase in service revenues was due
primarily to the acquisition of ACT! The increase in service revenues excluding
ACT! resulted primarily from the increase in the number of licenses sold as well
as renewals of existing maintenance and technical support contracts from our
growing installed base of customers. Customers are required to enter into
one-year support and maintenance contracts at the time of initial license
purchase and have the option to renew for additional one-year periods
thereafter. Our service revenues represented 33.0% and 21.1% of our total
revenues for the three months ended March 31, 1999 and 2000, respectively.

Costs of Revenues

         Cost of License Revenues. Cost of license revenues includes the cost of
media, product packaging, documentation and other production costs and
third-party royalties. Total cost of license revenues increased from $332,000 in
the three months ended March 31, 1999 to $2.0 million in the three months ended
March 31, 2000, representing 7.9% and 11.5% of license revenues in the
respective periods.

         Cost of license revenues increased primarily as a result of the
acquisition of ACT! Excluding ACT!, cost of license revenues increased due to
product royalties for third-party technology, primarily report writing software,
embedded in our products and, to a lesser extent, due to increases in overall
license sales. ACT! cost of license revenue is higher as a percentage of license
revenue than costs of license for the SalesLogix product line for the three
months ended March 31, 200 due to higher manufacturing and packaging costs of
ACT!, and we expect this trend to continue.

         Cost of Service Revenues. Cost of service revenues consists primarily
of the cost of providing technical support, training and consulting services to
customers and business partners. Total cost of service revenues increased from
$1.4 million in the three months ended March 31, 1999 to $3.7 million in the
three months ended March 31, 2000, representing 65.0% and 81.2% of service
revenues in the respective periods.

         The absolute dollar increases in cost of service revenue were primarily
attributable to hiring and training of additional personnel to support our
growing customer base and business partner network and the cost of establishing
and maintaining a new telephone support center for the ACT! product line. The
increase as a percentage of service revenues primarily reflects the high fixed
costs of the ACT! telephone support center.

Operating Expenses

         Sales and Marketing. Sales and marketing expenses consist primarily of
personnel-related expenses, costs related to the recruitment and support of our
business partner channel and marketing and promotional costs to increase brand
awareness in the marketplace and to generate leads for our sales channels. Sales
and marketing expenses increased from $3.6 million in the three months ended
March 31,

                                       11
<PAGE>   13
1999 to $12.5 million in the three months ended March 31, 2000, an increase of
248%. The increase reflected the hiring of additional sales and marketing
personnel, expanded advertising and other promotional activities and increased
sales commissions and bonuses related to increased license revenues, and the
incremental advertising, promotions, and headcount costs associated with the
acquisition of the ACT! product line. Sales and marketing expenses represented
57.1% and 57.5% of our total revenues for the three months ended March 31, 1999
and 2000, respectively. We anticipate that we will continue to invest
significantly in sales and marketing and that these expenses will increase in
absolute dollars.

         Research and Development. Research and development expenses consist
primarily of personnel-related costs for software developers, quality assurance
and product documentation personnel and payments to outside contractors.
Research and development expenses increased from $1.3 million in the three
months ended March 31, 1999 to $5.2 million in the three months ended March 31,
2000, an increase of 303%. This increase was primarily due to additional
research and development personnel hired in connection with the ACT! product
line acquisition, research and development efforts for the new Interact.com
business that is currently under development, and an increase in the number of
software developers, quality assurance personnel and outside developers to
support our product development, testing and documentation activities related to
the development and release upgrades to our SalesLogix and ACT! lines of
software products. Research and development expenses represented 20.4% and 23.8%
of our total revenues for the three months ended March 31, 1999 and 2000,
respectively. We anticipate that we will continue to invest significantly in
research and development and that these expenses will increase in absolute
dollars.

         General and Administrative. General and administrative expenses consist
primarily of salaries and related expenses for executive, finance and
administrative personnel, as well as outside professional fees. General and
administrative expenses increased from $587,000 in the three months ended March
31, 1999 to $2.3 million in the three months ended March 31, 2000, an increase
of 286%. This increase was primarily due to increased staffing and related
expenses necessary to manage and support the expansion of our operations,
additional headcount added to support the ACT! products and Interact.com
business, and the additional costs associated with being a publicly-held
company. General and administrative expenses represented 9.3% and 10.4% of our
total revenues for the three months ended March 31, 1999 and 2000, respectively.
We believe that general and administrative expenses will continue to increase in
absolute dollars as a result of the anticipated expansion of our administrative
staff to support our new lines of business and our rapid international
expansion.

         Amortization of Acquisition-Related Intangible Assets. Amortization of
acquisition-related intangible assets consists primarily of the amortization of
specifically identifiable intangible assets and goodwill. Amortization of
acquisition-related intangible assets increased from $279,000 in the three
months ended March 31, 1999 to $5.0 million in the three months ended March 31,
2000. The increase was primarily due to the increase in acquisition-related
intangible assets related to the acquisitions of ACT! in December 1999 and Enact
in April 1999.

         Interest Expense. Interest expense increased from $59,000 in the three
months ended March 31, 1999 to $4.0 million in the three months ended March 31,
2000 primarily due to interest expense on the Company's subordinated debt and
the accretion of the discounts on the senior subordinated debt and the amounts
due for the purchase of ACT!

         Interest Income. Interest income consists primarily of amounts earned
on our cash and short-term investments balances. Interest income increased from
$106,000 for the three months ended March 31, 1999 to $789,000 for the three
months ended March 31, 2000, primarily due to earnings on the net proceeds of
our initial public offering and concurrent private placement in May 1999 and the
senior subordinated debt in December 1999.

                                       12
<PAGE>   14
         Income Taxes. As of December 31, 1999, we had net operating loss
carryforwards for federal and state income tax reporting purposes of
approximately $15.0 million. The federal carryforwards expire at various dates
beginning in 2011. The Internal Revenue Code contains provisions that limit the
use in any future period of net operating loss and tax credit carryforwards upon
the occurrence of special events, including a significant change in ownership
interest. We had deferred tax assets, including net operating loss and tax
credit carryforwards, totaling approximately $7.5 million as of December 31,
1999. A valuation allowance has been recorded for the entire net deferred tax
asset balance as a result of uncertainties regarding its utilization.

LIQUIDITY AND CAPITAL RESOURCES

         As of March 31, 2000, we had cash and cash equivalents of $54.6
million, an decrease of $6.2 million from December 31, 1999. Our working capital
at March 31, 2000 was $41.2 million, compared to $49.9 million at December 31,
1999.

         Our operating activities resulted in net cash outflows of $1.2 million
in the three months ended March 31, 1999, compared to $1.8 million in the three
months ended March 31, 2000. The operating cash outflows resulted primarily from
significant investments in sales, marketing and product development, which led
to operating losses.

         Cash used in investing activities was $588,000 in the three months
ended March 31, 1999 and $4.6 million in the three months ended March 31, 2000,
resulting primarily from the purchase of capital equipment.

         Cash used in financing activities totaled $194,000 in the three months
ended March 31, 1999 compared to cash provided by financing activities of
$202,000 in the three months ended March 31, 2000, resulting primarily from
payments on capital equipment leases offset by proceeds from the exercise of
stock options.

         We currently anticipate that we will continue to experience significant
growth in our operating expenses for the foreseeable future as we strive to:

         -        implement our new e-business strategy;

         -        integrate and expand the ACT! products;

         -        enter new markets and increase penetration of existing markets
                  for our products and services;

         -        introduce new products and product enhancements;

         -        increase our product development, sales, marketing and
                  customer support activities;

         -        develop and expand our network of business partners and direct
                  sales force; and

         -        expand our international operations.

                                       13
<PAGE>   15
         Such operating expenses will consume a material amount of our cash
resources. We believe that our existing cash and cash equivalents will be
sufficient to meet our anticipated cash needs for working capital and capital
expenditures through December 31, 2000.

         We require substantial capital to fund our business, particularly to
finance international expansion and accounts receivable, and for capital
expenditures and potential acquisitions. Our future capital requirements will
depend on many factors, including the rate of revenue growth, the timing and
extent of spending to support product development efforts and expansion of sales
and marketing, the timing of introductions of new products and enhancements to
existing products and market acceptance of our products. As a result, we could
be required to raise substantial additional capital. To the extent that we raise
additional capital through the sale of equity or convertible debt securities,
the issuance of these securities could result in dilution to our existing
stockholders. If additional funds are raised through the issuance of debt
securities, the debt would have rights, preferences and privileges senior to
holders of common stock and the terms of the debt could impose restrictions on
our operations. We cannot assure you that such additional capital, if required,
will be available on acceptable terms, or at all. If we are unable to obtain the
necessary additional capital, we may be required to reduce the scope of our
planned product development and sales and marketing efforts, which would
materially adversely affect our business, financial condition and operating
results.

         Our e-business strategy depends in part upon maintaining the demand
for the existing ACT! products and capturing a significant percentage of the
ACT! user base as subscribers to our new Interact.com subscription products. If
we are not successful in maintaining revenues from the ACT! products and
customer base, or in transitioning the ACT! user base to our Web-based services,
our financing needs may accelerate. Accordingly, we may seek additional
financing through a private placement of debt and/or equity securities, and/or a
secondary public offering of our common stock as early as in the second quarter
of 2000, market and other conditions permitting. Although we believe that such
financing alternatives will be available, there is no assurance that financing
will be available on reasonable business terms or terms acceptable to us, or
that market conditions will permit any secondary public offering on terms
acceptable to us. In addition, issuing additional equity securities will dilute
current stockholders' percentage ownership, and incurring substantial debt may
impose restrictions that could disrupt our ongoing business and increase our
expenses. If we are unable to obtain sufficient financing on terms acceptable to
us or at all, our business, financial condition and operating results would be
materially adversely affected.

YEAR 2000 COMPLIANCE

         We believe that the current versions of our internally developed
software products, as well as our management and information systems, are Year
2000 compliant. When the century changed, we experienced no significant
disruption of our business operations and no significant product failures as a
result of Year 2000 compliance issues or otherwise. The costs we incurred in
connection with remediating our systems during 1999 were immaterial. At this
time, we are not aware of any material defects resulting from Year 2000 issues,
either with our products, our internal systems, or the products and services of
third parties on which we rely. Nevertheless, some Year 2000 problems may not
appear until several months after January 1, 2000. As a result, we may still
face claims for undiscovered Year 2000 errors in our own products or for Year
2000 issues arising from third-party products that we integrate into our
products or with which our products and systems exchange data. In addition, if
our suppliers or distributors encounter Year 2000 problems, our ability to
deliver our products and services could be disrupted.

                                       14
<PAGE>   16
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         Our primary exposure to market risk arises from foreign currency
exchange risk associated with our international operations and foreign currency
exchange risk associated with our U.S. sales made in foreign currency. We do not
currently use, nor have we historically used, derivative financial instruments
to manage or reduce market risk.

         Beginning January 1, 2000 the functional currencies for our European,
German, and Australian operations are Pounds Sterling, Euro, and Australian
dollars, respectively. As such, there is potential market risk exposure for our
future earnings due to changes in exchange rates. Given the relatively short
duration of our international monetary assets and liabilities, the relative
stability of these currencies compared to the U.S. dollar, and the relative size
of our international operations, we consider this exposure to be minimal. We
believe that a 10% change in exchange rates would not have a significant impact
on our future earnings.

         Our cash equivalents are exposed to financial market risk, including
changes in interest rates. We typically do not attempt to reduce or eliminate
our market exposures on these investment securities because of their short-term
duration. We believe that the fair value of our investment portfolio or related
income would not be significantly impacted by either a 100 basis point increase
or decrease in interest rates due mainly to the short-term nature of the major
portion of our investment portfolio.

                                       15
<PAGE>   17
PART II  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         The Company is subject to certain legal proceedings and claims that
arise in the conduct of its business. In the opinion of management, the amount
of liability, if any, as a result of these claims and proceedings is not likely
to have a material effect on the financial condition or results of operations of
the Company.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         (c)      Sales of Unregistered Securities During the Quarter

         During the quarter ended March 31, 2000, Interact issued and sold (i)
10,820 unregistered shares of its common stock to former employees of Opis
Corporation pursuant to the exercise of options assumed by Interact in
connection with its acquisition of Opis in exchange for an aggregate purchase
price of $13,850, and (ii) 5,834 unregistered shares of its common stock to its
business partners pursuant to the exercise of stock options under its 1998
Business Partner Stock Option Plan in exchange for an aggregate purchase price
of $34,303. The options were granted in consideration of these individuals'
services to Interact or, in the case of former employees of Opis, in
consideration of services rendered to Opis. In issuing these securities Interact
relied on an exemption from registration pursuant to Rule 701 under Section 3(b)
of the Securities Act.

         (d)      Use of Proceeds

         On May 27, 1999, the Company's initial public offering registered on
Form S-1, file number 333-75353, became effective. During the three month period
ending March 31, 2000, the Company used approximately $2.4 million of the net
proceeds from the offering to fund working capital needs, approximately $4.0
million of the net proceeds from the offering to purchase office and computer
equipment, and approximately $200,000 of the net proceeds for payments on
capital lease obligations.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         A Special Meeting of Stockholders was held on April 3, 2000 to act on
the following matters:

         1.       To approve an amendment to the Company's Fifth Restated
Certificate of Incorporation to change the Company's name from SalesLogix
Corporation to Interact Commerce Corporation. The votes cast for and against
this amendment were 16,529,594 and 9,967 respectively, with 3,552 abstaining,
which was sufficient to approve the amendment.

         2.       To approve an amendment to the Company's Amended and Restated
1996 Equity Incentive Plan to (a) increase the aggregate number of shares of
Common Stock authorized for issuance under the plan by 1,800,000 shares, from
4,500,000 shares to 6,300,000 shares, and (b) to qualify equity-based
compensation under the plan for the performance-based compensation exception
under Internal Revenue Code Section 162(m). The votes cast for and against this
amendment were 10,878,682 and 4,016,583 respectively, with 4,693 abstaining,
which was sufficient to approve the amendment.

                                       16
<PAGE>   18
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      EXHIBITS

NUMBER            DESCRIPTION

3.1               Fifth Restated Certificate of Incorporation of the registrant,
                  incorporated by reference to Exhibit 3.4 to the registrant's
                  Registration Statement on Form S-1 (No. 333-75353), as
                  amended.

3.2               Amendment No. 1 to Fifth Restated Certificate of
                  Incorporation, effective April 24, 2000.

3.3               Second Restated Bylaws of the registrant, incorporated by
                  reference to Exhibit 3.5 to the registrant's Registration
                  Statement on Form S-1 (No. 333-75353), as amended.

10.1              Commercial Lease Agreement dated January 19, 2000 between the
                  registrant and Nova CCOP, Inc.

10.2              Office Lease dated February 3, 2000 between the registrant and
                  Century San Jose, LLC.

10.3              Credit Agreement dated April 27, 2000 between the registrant
                  and Imperial Bank.

10.4              Security Agreement dated April 27, 2000 between the registrant
                  and Imperial Bank.

10.5              Revolving Promissory Note dated April 27, 2000 between the
                  registrant and Imperial Bank.

10.6              Master Lease Agreement dated February 28, 2000, as amended and
                  modified, between the registrant and Imperial Bank.

27.1              Financial Data Schedule

         (b)      REPORTS ON FORM 8-K

         On January 13, 2000, the registrant filed a report on Form 8-K
relating to the closing of its acquisition of the ACT! Product Line and related
business from Symantec Corporation pursuant  to a Software License Agreement
dated December 6, 1999, as amended and closed on December 31, 1999. On March
15, 2000, the registrant filed a report on Form 8-K/A amending its prior report
on Form 8-K to provide financial information required by Items 7(a) and 7(b) of
Form 8-K.
                                       17
<PAGE>   19
                                   SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                          INTERACT COMMERCE CORPORATION


Date:  May 9, 2000              By:  /s/ Gary R. Acord
                                ------------------------------------------------
                                Gary R. Acord
                                Vice President, Chief Financial Officer,
                                Secretary and Treasurer (Principal Financial and
                                Chief Accounting Officer)

                                       18
<PAGE>   20
                                  EXHIBIT INDEX

NUMBER            DESCRIPTION

3.1               Fifth Restated Certificate of Incorporation of the registrant,
                  incorporated by reference to Exhibit 3.4 to the registrant's
                  Registration Statement on Form S-1 (No. 333-75353), as
                  amended.

3.2               Amendment No. 1 to Fifth Restated Certificate of
                  Incorporation, effective April 24, 2000.

3.3               Second Restated Bylaws of the registrant, incorporated by
                  reference to Exhibit 3.5 to the registrant's Registration
                  Statement on Form S-1 (No. 333-75353), as amended.

10.1              Commercial Lease Agreement dated January 19, 2000 between the
                  registrant and Nova CCOP, Inc.

10.2              Office Lease dated February 3, 2000 between the registrant and
                  Century San Jose, LLC.

10.3              Credit Agreement dated April 27, 2000 between the registrant
                  and Imperial Bank.

10.4              Security Agreement dated April 27, 2000 between the registrant
                  and Imperial Bank.

10.5              Revolving Promissory Note dated April 27, 2000 between the
                  registrant and Imperial Bank.

10.6              Master Lease Agreement dated February 28, 2000, as amended and
                  modified, between the registrant and Imperial Bank.

27.1              Financial Data Schedule

                                       19