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Jul 20, 2022 · 16m · top-founders

Accucode Builds $30m ARR SaaS Tool Inside of $70m Revenue Hardware Business

Kevin Price · 9m spoken Nathan Latka · 4m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

Nathan Latka interviews AccuCode founder and CEO Kevin Price to explore how he leveraged a $70 million physical hardware deployment business to self-fund and incubate high-margin SaaS tools and industrial technology ventures. Kevin details his holding company architecture, past multi-million-dollar software exits, and strategic expansions into artificial intelligence and additive manufacturing.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 34% of the talking time here. How this is scored →

Nathan as informed peer 3.8 Guest teaching 2.6 Guest disagreement 1.2 Nathan pushing back 2.4
05100:0010:002:25–6:01 · Nathan as informed peer 5/10 Industrial Software Solutions and AI Research Initiatives Nathan actively probes Accucode's business economics, pressing on whether hardware is a zero-margin loss leader. Kevin clarifies their margin profile and explains how high-volume hardware distribution powers their device management software.6:02–10:20 · Nathan as informed peer 4/10 Founder Journey, Headcount, and Nationwide Field Operations Nathan examines Kevin's exit history, evaluating EBITDA multiples and P&L mechanics. Kevin corrects Nathan's misconception about the company's origins and explains his model of spinning standalone LLCs out of Accucode.10:20–12:27 · Nathan as informed peer 3/10 Strategic Entry into Additive Manufacturing Kevin details his thesis behind acquiring the 3D printing store, highlighting industrial pain points and dismissing standard printer manufacturer claims. Nathan largely listens before transitioning into a mid-episode ad read.12:29–14:31 · Nathan as informed peer 5/10 3D Printing Expansion and Holding Company Structure Nathan demonstrates corporate finance knowledge by asking about the tax and cash-flow benefits of running an umbrella holding company. Kevin breaks down the nuances of R&D expensing versus shared resource friction.14:31–15:48 · Nathan as informed peer 2/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard Famous Five rapid-fire questions, and Kevin provides direct, concise answers without friction.2:25–6:01 · Guest teaching 3/10 Industrial Software Solutions and AI Research Initiatives Nathan actively probes Accucode's business economics, pressing on whether hardware is a zero-margin loss leader. Kevin clarifies their margin profile and explains how high-volume hardware distribution powers their device management software.6:02–10:20 · Guest teaching 3/10 Founder Journey, Headcount, and Nationwide Field Operations Nathan examines Kevin's exit history, evaluating EBITDA multiples and P&L mechanics. Kevin corrects Nathan's misconception about the company's origins and explains his model of spinning standalone LLCs out of Accucode.10:20–12:27 · Guest teaching 4/10 Strategic Entry into Additive Manufacturing Kevin details his thesis behind acquiring the 3D printing store, highlighting industrial pain points and dismissing standard printer manufacturer claims. Nathan largely listens before transitioning into a mid-episode ad read.12:29–14:31 · Guest teaching 2/10 3D Printing Expansion and Holding Company Structure Nathan demonstrates corporate finance knowledge by asking about the tax and cash-flow benefits of running an umbrella holding company. Kevin breaks down the nuances of R&D expensing versus shared resource friction.14:31–15:48 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard Famous Five rapid-fire questions, and Kevin provides direct, concise answers without friction.2:25–6:01 · Guest disagreement 1/10 Industrial Software Solutions and AI Research Initiatives Nathan actively probes Accucode's business economics, pressing on whether hardware is a zero-margin loss leader. Kevin clarifies their margin profile and explains how high-volume hardware distribution powers their device management software.6:02–10:20 · Guest disagreement 1/10 Founder Journey, Headcount, and Nationwide Field Operations Nathan examines Kevin's exit history, evaluating EBITDA multiples and P&L mechanics. Kevin corrects Nathan's misconception about the company's origins and explains his model of spinning standalone LLCs out of Accucode.10:20–12:27 · Guest disagreement 2/10 Strategic Entry into Additive Manufacturing Kevin details his thesis behind acquiring the 3D printing store, highlighting industrial pain points and dismissing standard printer manufacturer claims. Nathan largely listens before transitioning into a mid-episode ad read.12:29–14:31 · Guest disagreement 1/10 3D Printing Expansion and Holding Company Structure Nathan demonstrates corporate finance knowledge by asking about the tax and cash-flow benefits of running an umbrella holding company. Kevin breaks down the nuances of R&D expensing versus shared resource friction.14:31–15:48 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard Famous Five rapid-fire questions, and Kevin provides direct, concise answers without friction.2:25–6:01 · Nathan pushing back 4/10 Industrial Software Solutions and AI Research Initiatives Nathan actively probes Accucode's business economics, pressing on whether hardware is a zero-margin loss leader. Kevin clarifies their margin profile and explains how high-volume hardware distribution powers their device management software.6:02–10:20 · Nathan pushing back 3/10 Founder Journey, Headcount, and Nationwide Field Operations Nathan examines Kevin's exit history, evaluating EBITDA multiples and P&L mechanics. Kevin corrects Nathan's misconception about the company's origins and explains his model of spinning standalone LLCs out of Accucode.10:20–12:27 · Nathan pushing back 2/10 Strategic Entry into Additive Manufacturing Kevin details his thesis behind acquiring the 3D printing store, highlighting industrial pain points and dismissing standard printer manufacturer claims. Nathan largely listens before transitioning into a mid-episode ad read.12:29–14:31 · Nathan pushing back 2/10 3D Printing Expansion and Holding Company Structure Nathan demonstrates corporate finance knowledge by asking about the tax and cash-flow benefits of running an umbrella holding company. Kevin breaks down the nuances of R&D expensing versus shared resource friction.14:31–15:48 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard Famous Five rapid-fire questions, and Kevin provides direct, concise answers without friction.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 53.9% · guest 46.1%0:00 · Nathan 53.9% · guest 46.1%3:00 · Nathan 20.6% · guest 79.4%3:00 · Nathan 20.6% · guest 79.4%6:00 · Nathan 20.6% · guest 79.4%6:00 · Nathan 20.6% · guest 79.4%9:00 · Nathan 27.3% · guest 72.7%9:00 · Nathan 27.3% · guest 72.7%12:00 · Nathan 35.8% · guest 64.2%12:00 · Nathan 35.8% · guest 64.2%15:00 · Nathan 64.9% · guest 35.1%15:00 · Nathan 64.9% · guest 35.1%
Sharpest disagreement ▶ 11:15 Kevin dismisses printer manufacturer marketing

Kevin sharply rejects conventional 3D printer hype, arguing that single successful prints are 'cute' but commercially useless without reliable operational software.

 Hardest push from Nathan ▶ 4:14 Nathan challenges hardware profitability

Nathan refuses to assume hardware brings solid profit, directly asking if margins are essentially zero or acting as a loss leader.

 Biggest teaching moment ▶ 4:22 Kevin explains the self-funding business development model

Kevin reframes the hardware operation not as a weak product line, but as a self-funding business development channel that enables large-scale distributed device deployments.

 Nathan holds their own ▶ 13:39 Nathan probes tax advantages of the holding structure

Nathan displays financial expertise by asking how standup P&Ls under an umbrella holding company optimize cash flow and tax treatment.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Industrial Software Solutions and AI Research Initiatives 5314 Nathan actively probes Accucode's business economics, pressing on whether hardware is a zero-margin loss leader. Kevin clarifies their margin profile and explains how high-volume hardware distribution powers their device management software.
Founder Journey, Headcount, and Nationwide Field Operations 4313 Nathan examines Kevin's exit history, evaluating EBITDA multiples and P&L mechanics. Kevin corrects Nathan's misconception about the company's origins and explains his model of spinning standalone LLCs out of Accucode.
Strategic Entry into Additive Manufacturing 3422 Kevin details his thesis behind acquiring the 3D printing store, highlighting industrial pain points and dismissing standard printer manufacturer claims. Nathan largely listens before transitioning into a mid-episode ad read.
3D Printing Expansion and Holding Company Structure 5212 Nathan demonstrates corporate finance knowledge by asking about the tax and cash-flow benefits of running an umbrella holding company. Kevin breaks down the nuances of R&D expensing versus shared resource friction.
The Famous Five Rapid-Fire Questions 2111 Nathan conducts the standard Famous Five rapid-fire questions, and Kevin provides direct, concise answers without friction.

Statements from this episode (13)

Assertion Not checkable as stated
Kevin Price: AccuCode's historical revenue is roughly 70% hardware
“Historically it's been about 70% hardware and the balance and services.”
Kevin Price Jul 20, 2022 ▶ 1:26
Assertion Not checkable as stated
Kevin Price: AccuCode 3D printing generates under $1 million annually
“The three D division, the small unit today, it's doing less than a million dollars here in revenue, but lots of interesting stuff.”
Kevin Price Jul 20, 2022 ▶ 1:32
Assertion Not checkable as stated
Kevin Price: 4Work SaaS division does about $300K ARR
“And I'm just in the process of setting up that division, but it's got about 300,000 dollars a year in revenue behind it today. It's all monthly subscription based.”
Kevin Price Jul 20, 2022 ▶ 2:00
Assertion Not checkable as stated
Price: AccuCode handles all mid-market B2B network deployments for Lumen
“Lumen is one of our biggest customers. And we do all of their B to B network deployment work for their mid-market customers.”
Kevin Price Jul 20, 2022 ▶ 3:56
Assertion Not checkable as stated
Price: Hardware gross margins typically range from 12% to 20%
“Typically gross margins run between 12 and 20% in the hardware space, and that's gross margin, not net.”
Kevin Price Jul 20, 2022 ▶ 5:42
Assertion Not checkable as stated
Price: AccuCode hardware net margins are around 3% to 4%
“Probably more like three or four.”
Kevin Price Jul 20, 2022 ▶ 5:59
Disclosure
Kevin Price: AccuCode employs 150 full-time staff and hundreds of field contractors
“About a 150 full-time employees, and at any given time, several hundred contractors that are out in the field doing the physical work.”
Kevin Price Jul 20, 2022 ▶ 6:45
Assertion Supported
Price: AccuCode exited three SaaS businesses, including a $25M sale to Descartes
“We sold three different software to service businesses previously. And the biggest one was for twenty-five million dollars. We sold it to Descartes a little over four years ago.”
Kevin Price Jul 20, 2022 ▶ 7:35
Assertion Not checkable as stated
Price: Velocity Mail did $5.5M revenue and $3.5M EBITDA at Descartes acquisition
“I was doing about five and a half million in revenue and delivering three and a half million a year in EBITDA on that.”
Kevin Price Jul 20, 2022 ▶ 8:07
Insight
Price: Incubating SaaS as standalone P&Ls eases exits by isolating operational staff
“I run them. I run them as separate LLCs and I run them, you know, from day one as a standalone PL inside of AccuCode. And then, and that makes it actually makes it easier to exit because they only have to take the operational staff tied to that particular prod…”
Kevin Price Jul 20, 2022 ▶ 9:44
Insight
Price: 3D printer makers lack commercially valuable repeatability
“And the printer manufacturers focus on, look what I can print, but typically they can only print it successfully once. And it often takes two or three attempts to get the one right. And as I say, that's cute that you can do that, but it's not very valuable.”
Kevin Price Jul 20, 2022 ▶ 11:19
Disclosure
Kevin Price: AccuCode invested over $2M into 3D printing business
“So I put over two million dollars into new equipment and facilities and staff, and we now have the ability to print hard metal parts, high temperature polymers, fiber reinforced plastics, all kinds of different materials and multiple facilities.”
Kevin Price Jul 20, 2022 ▶ 12:38
Insight
Price: Incubating software in a Holdco takes longer to scale
“I think there's also a cost to that because it's not the sole focus and because a lot of the resources are shared. It takes longer to scale it that way.”
Kevin Price Jul 20, 2022 ▶ 14:20
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