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Apr 16, 2019 · 19m · top-founders

1361 Adthena Passes $7m in ARR, 80% YoY Growth

Ian O'Rourke · 10m spoken Nathan Latka · 7m spoken
0:00 / 0:00

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

In this episode of The Top Entrepreneurs Podcast, host Nathan Latka interviews Adthena CEO Ian O'Rourke to explore how the enterprise search intelligence platform scaled past $7.5 million in ARR with 115% year-over-year growth. O'Rourke shares key insights into Adthena's inside sales methodology, angel funding history, unit economics, and strategic US market expansion.

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 40.9% of the talking time here. How this is scored →

Nathan as informed peer 4.4 Guest teaching 2.1 Guest disagreement 1.0 Nathan pushing back 2.0
05100:0010:000:00–2:26 · Nathan as informed peer 0/10 Nathan Latka's Book Promotion and Reviews Solo host intro, book promotion, and overview summary of the company's financial metrics.2:27–5:48 · Nathan as informed peer 4/10 Introducing Ian O'Rourke and Adthena's Model Collaborative introductory exchange where Nathan clarifies sales cycle length and ACV while Ian outlines Adthena's search intelligence product and early funding.5:48–9:16 · Nathan as informed peer 6/10 Inside Sales Architecture and Quota Structures Nathan probes how Ian designs comp plans and sales quotas, actively doing the math on OTE multiples to clarify whether quota scales from total OTE or base salary.9:16–13:07 · Nathan as informed peer 6/10 Current ARR Scale, Growth Targets, and US Expansion Nathan drills down on the discrepancy between gross and net revenue retention after clarifying growth targets and ARR run rate figures.13:07–15:14 · Nathan as informed peer 7/10 Customer Acquisition Cost, Payback, and LTV Metrics Nathan quickly computes payback period and total LTV based on Ian's CAC and ratio inputs, questioning the practical business utility of calculating LTV.15:14–17:17 · Nathan as informed peer 6/10 Cash Flow Strategy, Rule of 40, and Data Costs Nathan pushes back to clarify whether Adthena is currently cash flow positive or only projected to be in Q4. Ian explains his US data collection cost structure relative to SaaS benchmark surveys.17:17–18:44 · Nathan as informed peer 2/10 The Famous Five Rapid-Fire Questions Standard Famous Five sequence moving smoothly into the episode recap, with light correction around the guest's age.0:00–2:26 · Guest teaching 0/10 Nathan Latka's Book Promotion and Reviews Solo host intro, book promotion, and overview summary of the company's financial metrics.2:27–5:48 · Guest teaching 2/10 Introducing Ian O'Rourke and Adthena's Model Collaborative introductory exchange where Nathan clarifies sales cycle length and ACV while Ian outlines Adthena's search intelligence product and early funding.5:48–9:16 · Guest teaching 3/10 Inside Sales Architecture and Quota Structures Nathan probes how Ian designs comp plans and sales quotas, actively doing the math on OTE multiples to clarify whether quota scales from total OTE or base salary.9:16–13:07 · Guest teaching 3/10 Current ARR Scale, Growth Targets, and US Expansion Nathan drills down on the discrepancy between gross and net revenue retention after clarifying growth targets and ARR run rate figures.13:07–15:14 · Guest teaching 2/10 Customer Acquisition Cost, Payback, and LTV Metrics Nathan quickly computes payback period and total LTV based on Ian's CAC and ratio inputs, questioning the practical business utility of calculating LTV.15:14–17:17 · Guest teaching 4/10 Cash Flow Strategy, Rule of 40, and Data Costs Nathan pushes back to clarify whether Adthena is currently cash flow positive or only projected to be in Q4. Ian explains his US data collection cost structure relative to SaaS benchmark surveys.17:17–18:44 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions Standard Famous Five sequence moving smoothly into the episode recap, with light correction around the guest's age.0:00–2:26 · Guest disagreement 0/10 Nathan Latka's Book Promotion and Reviews Solo host intro, book promotion, and overview summary of the company's financial metrics.2:27–5:48 · Guest disagreement 0/10 Introducing Ian O'Rourke and Adthena's Model Collaborative introductory exchange where Nathan clarifies sales cycle length and ACV while Ian outlines Adthena's search intelligence product and early funding.5:48–9:16 · Guest disagreement 1/10 Inside Sales Architecture and Quota Structures Nathan probes how Ian designs comp plans and sales quotas, actively doing the math on OTE multiples to clarify whether quota scales from total OTE or base salary.9:16–13:07 · Guest disagreement 2/10 Current ARR Scale, Growth Targets, and US Expansion Nathan drills down on the discrepancy between gross and net revenue retention after clarifying growth targets and ARR run rate figures.13:07–15:14 · Guest disagreement 1/10 Customer Acquisition Cost, Payback, and LTV Metrics Nathan quickly computes payback period and total LTV based on Ian's CAC and ratio inputs, questioning the practical business utility of calculating LTV.15:14–17:17 · Guest disagreement 2/10 Cash Flow Strategy, Rule of 40, and Data Costs Nathan pushes back to clarify whether Adthena is currently cash flow positive or only projected to be in Q4. Ian explains his US data collection cost structure relative to SaaS benchmark surveys.17:17–18:44 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions Standard Famous Five sequence moving smoothly into the episode recap, with light correction around the guest's age.0:00–2:26 · Nathan pushing back 0/10 Nathan Latka's Book Promotion and Reviews Solo host intro, book promotion, and overview summary of the company's financial metrics.2:27–5:48 · Nathan pushing back 1/10 Introducing Ian O'Rourke and Adthena's Model Collaborative introductory exchange where Nathan clarifies sales cycle length and ACV while Ian outlines Adthena's search intelligence product and early funding.5:48–9:16 · Nathan pushing back 3/10 Inside Sales Architecture and Quota Structures Nathan probes how Ian designs comp plans and sales quotas, actively doing the math on OTE multiples to clarify whether quota scales from total OTE or base salary.9:16–13:07 · Nathan pushing back 3/10 Current ARR Scale, Growth Targets, and US Expansion Nathan drills down on the discrepancy between gross and net revenue retention after clarifying growth targets and ARR run rate figures.13:07–15:14 · Nathan pushing back 2/10 Customer Acquisition Cost, Payback, and LTV Metrics Nathan quickly computes payback period and total LTV based on Ian's CAC and ratio inputs, questioning the practical business utility of calculating LTV.15:14–17:17 · Nathan pushing back 4/10 Cash Flow Strategy, Rule of 40, and Data Costs Nathan pushes back to clarify whether Adthena is currently cash flow positive or only projected to be in Q4. Ian explains his US data collection cost structure relative to SaaS benchmark surveys.17:17–18:44 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions Standard Famous Five sequence moving smoothly into the episode recap, with light correction around the guest's age.

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

0:00 · Nathan 97.2% · guest 2.8%0:00 · Nathan 97.2% · guest 2.8%3:00 · Nathan 25.2% · guest 74.8%3:00 · Nathan 25.2% · guest 74.8%6:00 · Nathan 25.1% · guest 74.9%6:00 · Nathan 25.1% · guest 74.9%9:00 · Nathan 20.2% · guest 79.8%9:00 · Nathan 20.2% · guest 79.8%12:00 · Nathan 24.3% · guest 75.7%12:00 · Nathan 24.3% · guest 75.7%15:00 · Nathan 26.8% · guest 73.2%15:00 · Nathan 26.8% · guest 73.2%18:00 · Nathan 78.1% · guest 21.9%18:00 · Nathan 78.1% · guest 21.9%
Sharpest disagreement ▶ 12:39 Pushing back on steady net retention

Ian resists Nathan's framing that net retention must comfortably exceed 100%, emphasizing that upsell performance is volatile and bumpy across quarters.

 Hardest push from Nathan ▶ 15:41 Challenging cash flow status

Nathan refuses to accept a vague answer on cash flow accretiveness and directly interrupts to pin down whether they are positive right now or only in Q4.

 Biggest teaching moment ▶ 16:34 Disproportionate US data infrastructure costs

Ian educates Nathan on why Rule of 40 and unit economics appear depressed when building complete US search market coverage before revenue catches up.

 Nathan holds their own ▶ 13:27 Instantaneous CAC payback and LTV calculation

Nathan instantly computes the 8-to-9 month payback period and $140,000 LTV from high-level CAC numbers, demonstrating strong SaaS financial acumen.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Nathan Latka's Book Promotion and Reviews 0000 Solo host intro, book promotion, and overview summary of the company's financial metrics.
Introducing Ian O'Rourke and Adthena's Model 4201 Collaborative introductory exchange where Nathan clarifies sales cycle length and ACV while Ian outlines Adthena's search intelligence product and early funding.
Inside Sales Architecture and Quota Structures 6313 Nathan probes how Ian designs comp plans and sales quotas, actively doing the math on OTE multiples to clarify whether quota scales from total OTE or base salary.
Current ARR Scale, Growth Targets, and US Expansion 6323 Nathan drills down on the discrepancy between gross and net revenue retention after clarifying growth targets and ARR run rate figures.
Customer Acquisition Cost, Payback, and LTV Metrics 7212 Nathan quickly computes payback period and total LTV based on Ian's CAC and ratio inputs, questioning the practical business utility of calculating LTV.
Cash Flow Strategy, Rule of 40, and Data Costs 6424 Nathan pushes back to clarify whether Adthena is currently cash flow positive or only projected to be in Q4. Ian explains his US data collection cost structure relative to SaaS benchmark surveys.
The Famous Five Rapid-Fire Questions 2111 Standard Famous Five sequence moving smoothly into the episode recap, with light correction around the guest's age.

Statements from this episode (20)

Disclosure
Adthena relies predominantly on inside sales for marketing enterprise contracts
“We tend to be inside sales predominantly and we will sell fairly, fairly short sales cycles to marketing teams.”
Ian O'Rourke Apr 16, 2019 ▶ 3:46
Assertion Not checkable as stated
Adthena maintains a 60-day enterprise sales cycle
“So, 60 days.”
Ian O'Rourke Apr 16, 2019 ▶ 4:01
Assertion Not checkable as stated
Adthena's average annual customer contract is roughly $50,000
“So our average is roughly 50,000 dollars per annum.”
Ian O'Rourke Apr 16, 2019 ▶ 4:07
Disclosure
Adthena raised its Series A from Candy Crush backer Mel Morris
“Yeah, so we have no institutional funding, so we I tipped in a little of my own money and business partners, and then we have taken on a couple of angels here and there, and we have a quite famous investor did our Series A, and the guy who was the original cha…”
Ian O'Rourke Apr 16, 2019 ▶ 4:54
Disclosure
Adthena has raised around $5 million in total funding
“Around about five million dollars.”
Ian O'Rourke Apr 16, 2019 ▶ 5:34
Disclosure
Adthena employs over 80 people across London, Austin, and Sydney
“So the team overall, we have offices in Austin, Texas, London is the headquarters in Sydney in Australia, and we're probably 80 plus people. Who's in inside sales? I think there's probably 15 to 20 people.”
Ian O'Rourke Apr 16, 2019 ▶ 5:57
Disclosure
Ramped Adthena sales reps target over $1M in new ARR
“They're probably doing a bit north of a million dollars.”
Ian O'Rourke Apr 16, 2019 ▶ 7:48
Disclosure
Adthena requires inside sales reps to deliver 5x to 6x OTE
“So if you come in and you say, look, I want to earn a hundred grand. So you're going to be 50 base, 50 on target. Then we're going to say, all right, we need you to deliver five or six times that at least.”
Ian O'Rourke Apr 16, 2019 ▶ 8:16
Assertion Not checkable as stated
Adthena serves over 200 enterprise customers on its platform
“So we're a bit over 200 enterprises on the platform.”
Ian O'Rourke Apr 16, 2019 ▶ 9:24
Prediction Not checkable as stated
Adthena expects to exceed $10 million in ARR this year
“We've scaled, we'll hit a little bit north of ten million US dollars in ARR this year.”
Ian O'Rourke Apr 16, 2019 ▶ 9:57
Assertion Not checkable as stated
Adthena grew revenue 84% year-over-year in 2018
“We grew 84% last year.”
Ian O'Rourke Apr 16, 2019 ▶ 10:06
Prediction Not checkable as stated
Adthena is on target for 115% revenue growth this year
“We grow at a 115% this year on target. At the moment we're on target.”
Ian O'Rourke Apr 16, 2019 ▶ 10:07
Assertion Not checkable as stated
Adthena's ARR run rate is currently between $7.5M and $8M
“We're running at a close to seven and a half, eight. Closing out this month, we'll probably get closer to eight. All depends on the pound US dollar exchange rate, right?”
Ian O'Rourke Apr 16, 2019 ▶ 10:27
Assertion Not checkable as stated
Adthena retains slightly north of 90% annual gross revenue
“So we retain a bit north of 90%.”
Ian O'Rourke Apr 16, 2019 ▶ 12:10
Assertion Not checkable as stated
Adthena quarterly net retention fluctuates above and below 100%
“We don't have a fleet of people doing the upsells, so we might do a really great quarter of upsells, so that quarter will be well over a hundred, and then we might do a really, you know, slack quarter of upsells, and that'll be, you know, that'll be under a hu…”
Ian O'Rourke Apr 16, 2019 ▶ 12:55
Disclosure
Adthena's fully diluted customer acquisition cost is roughly $30,000
“Fully diluted CLAC last count in dollars probably, I think it's a roughly 30 grand.”
Ian O'Rourke Apr 16, 2019 ▶ 13:15
Disclosure
Adthena reports an LTV to CAC ratio of around 4.5
“I think last I saw, the last figure I saw was around four and a half. Ratio of LTV to CAC.”
Ian O'Rourke Apr 16, 2019 ▶ 13:29
Assertion Not checkable as stated
90% of Adthena's new enterprise business is paid upfront
“About 90% of our new businesses up on payments.”
Ian O'Rourke Apr 16, 2019 ▶ 15:25
Prediction Not checkable as stated
Adthena expects to be cash flow positive by Q4 2019
“We will be in Q four.”
Ian O'Rourke Apr 16, 2019 ▶ 15:47
Assertion Not checkable as stated
The US drives 25% of Adthena's data costs but 6% of revenue
“At the moment, we spend 25% of our data collection costs in the US market, but we only have six percent of our revenues.”
Ian O'Rourke Apr 16, 2019 ▶ 16:38
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