Clearview Social

“Yeah, so total ARR, we're just under 1.5 million ARR.”

“So today we have 147 customers.”

“So law firms and accounting firms and recruiting firms that are a fit for us, there are only about 3000 total customers. Like that's our addressable market.”

“When you talk about client cost of client acquisition, well, it's about 3000 dollars”

“Absolutely. Yeah, less than six months.”

“The only reason we lose customers is because they never started using it, right? They buy it and they never start sending out the emails to get people sharing. And so they get to the end of the year and it's like, oh, we didn't use this.”

“Yeah, like 10 to 20,000.”

“Now that we, since we've made that switch, about 90% of them choose to pay annually, which has been really great for cash flow.”

“Cause we, in terms of revenue we're not, you know, we're growing. So we have a negative and we get enough upgrades that the upgrades more than offset. So we have negative, negative churn in that sense.”

“So 12 months ago, we were at a About 900,000 ARR.”

“So to date, including we took a loan this last year for our growth just under 1.4 million.”

“So even though nine grams are average, we have a handful of firms that are spending 60,000 dollars a year and are using this across enterprises, multiple offices, multiple admins.”

“Yeah, the lifetime value is over 50 grand, and it's borne that out, right? The firms that use our product successfully, they would never consider leaving it behind because it's the one simple product that just works for them, right?”

“So they cancel our churn is annually. Our churn is about 14%. But with our key industries, legal and accounting, it's closer to 10%.”

“In the current market, we're currently paying 25,000 dollars to get a 13,000 dollar customer. And that's been through the pandemic. Pre-pandemic, we were closer to nine or 10,000 dollars as a CAC.”

“We've now crossed 180 customers.”

“In past years, average upgrades were about 10% of ARR each year from current customers. Now we're, we have in our contracts a seven percent annual upgrade, and we're just like, we're lucky to get that seven percent now. So the average is five percent.”

“So our ACV is up over 13,000 now.”

“That's probably in the ballpark of where I would be. I would listen to that.”

“So the quota per salesperson is About 25,000 dollars ARR per month in sales.”

“So our logo turns about 10%. Overall churn is about 14% on revenue in the year.”

“We're retaining our customers for 90 months on average, right?”

“That's about 1.2 from angels and about 300,000 from a government loan.”

“Yeah. So we're profitable, but we're right on the line.”

“So, so law firms are probably 70% of our customers. Including about 30 of the top 100 law firms in the country.”

“So we got 270,000 dollars.”

“Yes, I own more than half of the company.”

“So we finished 2019 just over 2.3 million in our run rate.”

“By the way, Clearview Social has now hit a million dollars in EBITDA in the two years since we sold.”

“So our EBITDA is, Was between, let's just say between four and 700,000 dollars at the time of the sale. Okay. And the framework that we were bought under is 13 times EBITDA.”

“So, so the way they structured the deal, it was about 70% up front, 20% year one, 10% year two.”

“Like I had a company car and I had extra like coaching resources that I use that didn't need to be part. Right. And so it's like, when I started adding all these things back, You know, we're looking at like two or 300,000 dollars of EBITDA.”

“Now, look, if my company had been a little bit bigger or we'd had, you know, been to a million in EBITDA, it would have been simple. We could have hired a banker. We could have done a full process. They could have shopped the product. But really like when you'…”

“But then the thing is, if they hit the number in year two, I still get the money because it's based on my stock ownership, not on my participation.”

“We had a great product and we kind of hit up against a TAM problem. So the industry just wasn't that big and we'd eaten most of the market.”

“And they didn't know all the terms. They just knew the price. Right. So, so they had much better terms and they bumped up the price and, you know, structured a two year earn out so that I could get all the money I wanted for the company.”

“So the, so, so the ESOP pool was, we had set aside about 15%, but we had only awarded about nine of the 15.”

“So we paid them five or six grand a month. But that was just for the three months for them to clean up our books, right? So once they did that, we actually transitioned to something else”