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Jan 5, 2020 · 19m · top-founders

1625 How $31M ARR CEO Profits $500k/mo and Cracked SMB Net Retention of 110%

Nathan Latka · 8m spoken Fabien Pinckaers · 8m spoken
0:00 / 0:00

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

Odoo founder and CEO Fabien Pinckaers explains how his open-source business software suite scaled to $31 million in ARR and $500,000 in monthly profit with high capital efficiency and a 110% net retention rate. Through balanced direct and partner distribution, transversal engineering, and dual-axis matrix pricing, Odoo bridges the gap between single-point SaaS tools and complex legacy ERP systems.

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 51% of the talking time here. How this is scored →

Nathan as informed peer 6.0 Guest teaching 3.4 Guest disagreement 1.8 Nathan pushing back 3.0
05100:0010:000:45–4:27 · Nathan as informed peer 5/10 Core Product Suite, Deployment Models, and Revenue Scale Nathan methodically breaks down Odoo's revenue model, asking targeted questions about SaaS versus on-premise splits, MRR, headcount, and bootstrapping history. Fabien answers directly and transparently without friction.4:27–6:54 · Nathan as informed peer 7/10 Customer Economics, Onboarding Impact, Churn, and Net Retention Nathan performs real-time SaaS math to deduce ARPU ($200-$300/mo), recurring revenue run rate ($31M), and annual net revenue retention (110%). Fabien adds nuance around non-recurring implementation fees reducing churn.6:56–12:31 · Nathan as informed peer 6/10 Competitive Advantage over Point Solutions and CAC Payback Nathan probes how Odoo competes against focused vertical leaders like Mailchimp and FreshBooks, along with CAC payback and capital allocation. Fabien educates on product release cycles driving organic lead volume and explains why M&A disrupts their developer-led culture.12:31–16:06 · Nathan as informed peer 7/10 Transversal Engineering Organization and Matrix Pricing Strategy Fabien explains Odoo's transversal engineering model where 85% of functionality is shared across apps. A debate emerges when Nathan tests the live matrix pricing page and challenges Fabien on whether pricing multiplies or adds user seats to app costs.16:06–19:23 · Nathan as informed peer 5/10 Secondary Market Plans, Famous Five, and Episode Conclusion Nathan inquires about secondary exits and suggests venture debt models like Wistia used. Fabien clarifies that the scale of the buyout is in the hundreds of millions, making debt unfeasible, before moving into the Famous Five wrap-up.0:45–4:27 · Guest teaching 2/10 Core Product Suite, Deployment Models, and Revenue Scale Nathan methodically breaks down Odoo's revenue model, asking targeted questions about SaaS versus on-premise splits, MRR, headcount, and bootstrapping history. Fabien answers directly and transparently without friction.4:27–6:54 · Guest teaching 3/10 Customer Economics, Onboarding Impact, Churn, and Net Retention Nathan performs real-time SaaS math to deduce ARPU ($200-$300/mo), recurring revenue run rate ($31M), and annual net revenue retention (110%). Fabien adds nuance around non-recurring implementation fees reducing churn.6:56–12:31 · Guest teaching 4/10 Competitive Advantage over Point Solutions and CAC Payback Nathan probes how Odoo competes against focused vertical leaders like Mailchimp and FreshBooks, along with CAC payback and capital allocation. Fabien educates on product release cycles driving organic lead volume and explains why M&A disrupts their developer-led culture.12:31–16:06 · Guest teaching 5/10 Transversal Engineering Organization and Matrix Pricing Strategy Fabien explains Odoo's transversal engineering model where 85% of functionality is shared across apps. A debate emerges when Nathan tests the live matrix pricing page and challenges Fabien on whether pricing multiplies or adds user seats to app costs.16:06–19:23 · Guest teaching 3/10 Secondary Market Plans, Famous Five, and Episode Conclusion Nathan inquires about secondary exits and suggests venture debt models like Wistia used. Fabien clarifies that the scale of the buyout is in the hundreds of millions, making debt unfeasible, before moving into the Famous Five wrap-up.0:45–4:27 · Guest disagreement 1/10 Core Product Suite, Deployment Models, and Revenue Scale Nathan methodically breaks down Odoo's revenue model, asking targeted questions about SaaS versus on-premise splits, MRR, headcount, and bootstrapping history. Fabien answers directly and transparently without friction.4:27–6:54 · Guest disagreement 1/10 Customer Economics, Onboarding Impact, Churn, and Net Retention Nathan performs real-time SaaS math to deduce ARPU ($200-$300/mo), recurring revenue run rate ($31M), and annual net revenue retention (110%). Fabien adds nuance around non-recurring implementation fees reducing churn.6:56–12:31 · Guest disagreement 2/10 Competitive Advantage over Point Solutions and CAC Payback Nathan probes how Odoo competes against focused vertical leaders like Mailchimp and FreshBooks, along with CAC payback and capital allocation. Fabien educates on product release cycles driving organic lead volume and explains why M&A disrupts their developer-led culture.12:31–16:06 · Guest disagreement 3/10 Transversal Engineering Organization and Matrix Pricing Strategy Fabien explains Odoo's transversal engineering model where 85% of functionality is shared across apps. A debate emerges when Nathan tests the live matrix pricing page and challenges Fabien on whether pricing multiplies or adds user seats to app costs.16:06–19:23 · Guest disagreement 2/10 Secondary Market Plans, Famous Five, and Episode Conclusion Nathan inquires about secondary exits and suggests venture debt models like Wistia used. Fabien clarifies that the scale of the buyout is in the hundreds of millions, making debt unfeasible, before moving into the Famous Five wrap-up.0:45–4:27 · Nathan pushing back 2/10 Core Product Suite, Deployment Models, and Revenue Scale Nathan methodically breaks down Odoo's revenue model, asking targeted questions about SaaS versus on-premise splits, MRR, headcount, and bootstrapping history. Fabien answers directly and transparently without friction.4:27–6:54 · Nathan pushing back 2/10 Customer Economics, Onboarding Impact, Churn, and Net Retention Nathan performs real-time SaaS math to deduce ARPU ($200-$300/mo), recurring revenue run rate ($31M), and annual net revenue retention (110%). Fabien adds nuance around non-recurring implementation fees reducing churn.6:56–12:31 · Nathan pushing back 2/10 Competitive Advantage over Point Solutions and CAC Payback Nathan probes how Odoo competes against focused vertical leaders like Mailchimp and FreshBooks, along with CAC payback and capital allocation. Fabien educates on product release cycles driving organic lead volume and explains why M&A disrupts their developer-led culture.12:31–16:06 · Nathan pushing back 6/10 Transversal Engineering Organization and Matrix Pricing Strategy Fabien explains Odoo's transversal engineering model where 85% of functionality is shared across apps. A debate emerges when Nathan tests the live matrix pricing page and challenges Fabien on whether pricing multiplies or adds user seats to app costs.16:06–19:23 · Nathan pushing back 3/10 Secondary Market Plans, Famous Five, and Episode Conclusion Nathan inquires about secondary exits and suggests venture debt models like Wistia used. Fabien clarifies that the scale of the buyout is in the hundreds of millions, making debt unfeasible, before moving into the Famous Five wrap-up.

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

0:00 · Nathan 63.5% · guest 36.5%0:00 · Nathan 63.5% · guest 36.5%3:00 · Nathan 41.7% · guest 58.3%3:00 · Nathan 41.7% · guest 58.3%6:00 · Nathan 52.5% · guest 47.5%6:00 · Nathan 52.5% · guest 47.5%9:00 · Nathan 45.2% · guest 54.8%9:00 · Nathan 45.2% · guest 54.8%12:00 · Nathan 39.8% · guest 60.2%12:00 · Nathan 39.8% · guest 60.2%15:00 · Nathan 54.1% · guest 45.9%15:00 · Nathan 54.1% · guest 45.9%18:00 · Nathan 75.2% · guest 24.8%18:00 · Nathan 75.2% · guest 24.8%
Sharpest disagreement ▶ 14:41 Fabien pushes back on pricing formula interpretation

Fabien directly contradicts Nathan's breakdown of the matrix pricing page, firmly arguing that app fees and user counts are summed rather than multiplied.

 Hardest push from Nathan ▶ 15:15 Nathan challenges Fabien with live pricing calculation

Nathan refuses to accept Fabien's denial of multiplication by quoting live checkout figures from Odoo's website to demonstrate that seat counts are indeed multiplied by the app rates.

 Biggest teaching moment ▶ 12:49 Fabien explains transversal engineering architecture

Fabien educates Nathan on why Odoo does not organize teams by application, revealing that 85% of product infrastructure is generic across tools and only 5% is app-specific.

 Nathan holds their own ▶ 6:26 Nathan instantly deduces 110% net retention

Nathan demonstrates high-level financial fluency by immediately linking 20% gross churn and 30% expansion into an exact 110% net revenue retention figure without missing a beat.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Core Product Suite, Deployment Models, and Revenue Scale 5212 Nathan methodically breaks down Odoo's revenue model, asking targeted questions about SaaS versus on-premise splits, MRR, headcount, and bootstrapping history. Fabien answers directly and transparently without friction.
Customer Economics, Onboarding Impact, Churn, and Net Retention 7312 Nathan performs real-time SaaS math to deduce ARPU ($200-$300/mo), recurring revenue run rate ($31M), and annual net revenue retention (110%). Fabien adds nuance around non-recurring implementation fees reducing churn.
Competitive Advantage over Point Solutions and CAC Payback 6422 Nathan probes how Odoo competes against focused vertical leaders like Mailchimp and FreshBooks, along with CAC payback and capital allocation. Fabien educates on product release cycles driving organic lead volume and explains why M&A disrupts their developer-led culture.
Transversal Engineering Organization and Matrix Pricing Strategy 7536 Fabien explains Odoo's transversal engineering model where 85% of functionality is shared across apps. A debate emerges when Nathan tests the live matrix pricing page and challenges Fabien on whether pricing multiplies or adds user seats to app costs.
Secondary Market Plans, Famous Five, and Episode Conclusion 5323 Nathan inquires about secondary exits and suggests venture debt models like Wistia used. Fabien clarifies that the scale of the buyout is in the hundreds of millions, making debt unfeasible, before moving into the Famous Five wrap-up.

Statements from this episode (20)

Assertion Not checkable as stated
Pinckaers: Odoo revenue is split 50-50 between SaaS and on-premise
“It's more or less fifty-fifty.”
Fabien Pinckaers Jan 5, 2020 ▶ 1:12
Assertion Not checkable as stated
Pinckaers: Odoo generates $2.6 million in MRR
“We are in MRR, we are 2.6 million dollars per month, or 60% per year.”
Fabien Pinckaers Jan 5, 2020 ▶ 1:26
Assertion Not checkable as stated
Pinckaers: Odoo will reach around $44 million in annual billings
“In billing for the year will be around forty four million dollars.”
Fabien Pinckaers Jan 5, 2020 ▶ 1:46
Assertion Supported
Pinckaers: Odoo Has Raised $12M in Total Funding
“Now we raised ten million euros, so twelve million dollars.”
Fabien Pinckaers Jan 5, 2020 ▶ 3:33
Assertion Not checkable as stated
Pinckaers: Odoo Generated $1M Revenue at 100 Employees Before SaaS Pivot
“So, when we were 100 people, we were doing one million in revenue per year.”
Fabien Pinckaers Jan 5, 2020 ▶ 3:48
Assertion Supported
Pinckaers: Odoo Raised $4M to Fund Pivot to Subscription Model
“And at that time, so we raised four million dollar to do the pivot.”
Fabien Pinckaers Jan 5, 2020 ▶ 4:17
Assertion Not checkable as stated
Pinckaers: Odoo has four million open-source users
“We actually have four millions of users because we do have a lot of free users because of the open source natural for do.”
Fabien Pinckaers Jan 5, 2020 ▶ 4:35
Assertion Not checkable as stated
Pinckaers: Odoo onboarding cuts first-year churn from 30% to 15-20%
“The, if they don't have a service, we have a churn of 30% on the first year. If I do, if they do use the service, we are closer to 15, 20% depending on the size.”
Fabien Pinckaers Jan 5, 2020 ▶ 5:47
Assertion Not checkable as stated
Pinckaers: Odoo generates 30% expansion revenue and -10% net churn
“Yes, it's 30%. So the net churn is around -10.”
Fabien Pinckaers Jan 5, 2020 ▶ 6:27
Disclosure
Pinckaers: Odoo's CAC is $2,400 direct and $1,200 through partners
“If we sell directly, it's 2000 euros or 2.4000 dollars. If it's a true partner, it's 1.2.”
Fabien Pinckaers Jan 5, 2020 ▶ 7:59
Disclosure
Pinckaers: Odoo new sales are split 50/50 between direct and partners
“It's fifty-fifty.”
Fabien Pinckaers Jan 5, 2020 ▶ 8:21
Disclosure
Pinckaers: Odoo achieves near-instant CAC payback via upfront annual billing
“Yeah, actually it's, as we sell per year, most of our contracts, we, with the payback is quite, it's instantly.”
Fabien Pinckaers Jan 5, 2020 ▶ 8:42
Assertion Not checkable as stated
Pinckaers: Odoo lead generation jumps 20% after each major version release
“Every time we release a new version from one month to another, we have an increase of the leads by 20%.”
Fabien Pinckaers Jan 5, 2020 ▶ 9:53
Disclosure
Pinckaers: Odoo spends roughly $40k monthly on paid ads and billboards
“Search engine activities, maybe twenty-k. Ok. And some billboards and some other ads, maybe twenty-k extra.”
Fabien Pinckaers Jan 5, 2020 ▶ 10:23
Assertion Not checkable as stated
Pinckaers: Odoo generates $500,000 in positive cash flow every month
“We do half a million dollar cash flow positive every month.”
Fabien Pinckaers Jan 5, 2020 ▶ 11:15
Disclosure
Pinckaers: Odoo Will Not Make Acquisitions to Protect Company Culture
“No, it's not our strategy. We prefer to grow organically mostly because we have a strong company culture and I'm not sure if we buy it, we will just spread the culture.”
Fabien Pinckaers Jan 5, 2020 ▶ 11:43
Assertion Not checkable as stated
Pinckaers: 50% of Odoo's 580 employees are engineers
“50%.”
Fabien Pinckaers Jan 5, 2020 ▶ 12:35
Insight
Pinckaers: 85% of SaaS app building is generic shared infrastructure
“So if you take one app, like a MailChimp to send email or and task management, I would say, 85% of what you have to do to build this app is generic. Generic. Like you need a mobile interface, interface. You need to have a front end with drag and drop stuff the…”
Fabien Pinckaers Jan 5, 2020 ▶ 12:55
Assertion Not checkable as stated
Pinckaers: Odoo has at most 10 engineers on accounting
“We do have people focus on some big apps like accounting. I think I have 10 people maximum, which is one of the biggest.”
Fabien Pinckaers Jan 5, 2020 ▶ 13:35
Disclosure
Pinckaers: Odoo plans a secondary exit because they have too much money
“No, we might have a secondary exit to help one of our investor to go out, but we plan to, we have too much money. We don't know what to do.”
Fabien Pinckaers Jan 5, 2020 ▶ 16:12
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