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Apr 10, 2019 · 18m · top-founders

1355 QASymphony Tricentis Merged Entity $80-100 ARR Going After DevOps Pie

David Keil · 9m spoken Nathan Latka · 7m spoken
0:00 / 0:00

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Nathan Latka interviews QA Symphony CEO David Keil regarding QA Symphony's strategic merger with automated testing provider Tricentis to form an $80–$100 million ARR software powerhouse. Keil details their rapid financial growth, governance structure, and strategy to displace legacy incumbents in the multi-billion-dollar DevOps testing market.

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 42.1% of the talking time here. How this is scored →

Nathan as informed peer 3.9 Guest teaching 1.3 Guest disagreement 0.9 Nathan pushing back 2.0
05100:0010:000:00–2:29 · Nathan as informed peer 0/10 Promotion of Nathan Latka's Bestselling Book Segment is an opening monologue and promotional spot for the host's book along with the show intro. There is no active dialogue with the guest.2:29–5:52 · Nathan as informed peer 4/10 Introducing David Keil and Past Metrics Nathan introduces David by reciting detailed metrics from their previous interview. David collaboratively shares QA Symphony's core value proposition and merger overview.5:52–7:55 · Nathan as informed peer 4/10 Merger Catalysts and Market Displacement Opportunity Nathan asks what sparked the merger and checks if key metrics shifted. David details geographic synergies and the market displacement of legacy providers like Micro Focus.7:55–11:04 · Nathan as informed peer 6/10 Executive Governance and Combined Financial Scale Nathan pushes on leadership egos, cuts in to extract combined ARR figures, and questions whether shared investor Insight is driving biased exit multiples.11:06–13:08 · Nathan as informed peer 6/10 DevOps Landscape and Future Growth Trajectory Nathan cites competitor revenues and directly interrupts David's broader ecosystem explanation to ask whether future acquisitions and roll-ups are planned.13:08–16:37 · Nathan as informed peer 5/10 Internal Alignment, Global Scale, and Merger Mechanics Nathan presses on merger deal mechanics, probing cap table rollover and confirming whether the transaction involved cash or was strictly a stock swap.16:37–18:00 · Nathan as informed peer 2/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard rapid-fire Famous Five questionnaire in a friendly, conversational manner before summarizing the company's trajectory.0:00–2:29 · Guest teaching 0/10 Promotion of Nathan Latka's Bestselling Book Segment is an opening monologue and promotional spot for the host's book along with the show intro. There is no active dialogue with the guest.2:29–5:52 · Guest teaching 1/10 Introducing David Keil and Past Metrics Nathan introduces David by reciting detailed metrics from their previous interview. David collaboratively shares QA Symphony's core value proposition and merger overview.5:52–7:55 · Guest teaching 2/10 Merger Catalysts and Market Displacement Opportunity Nathan asks what sparked the merger and checks if key metrics shifted. David details geographic synergies and the market displacement of legacy providers like Micro Focus.7:55–11:04 · Guest teaching 2/10 Executive Governance and Combined Financial Scale Nathan pushes on leadership egos, cuts in to extract combined ARR figures, and questions whether shared investor Insight is driving biased exit multiples.11:06–13:08 · Guest teaching 2/10 DevOps Landscape and Future Growth Trajectory Nathan cites competitor revenues and directly interrupts David's broader ecosystem explanation to ask whether future acquisitions and roll-ups are planned.13:08–16:37 · Guest teaching 2/10 Internal Alignment, Global Scale, and Merger Mechanics Nathan presses on merger deal mechanics, probing cap table rollover and confirming whether the transaction involved cash or was strictly a stock swap.16:37–18:00 · Guest teaching 0/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard rapid-fire Famous Five questionnaire in a friendly, conversational manner before summarizing the company's trajectory.0:00–2:29 · Guest disagreement 0/10 Promotion of Nathan Latka's Bestselling Book Segment is an opening monologue and promotional spot for the host's book along with the show intro. There is no active dialogue with the guest.2:29–5:52 · Guest disagreement 0/10 Introducing David Keil and Past Metrics Nathan introduces David by reciting detailed metrics from their previous interview. David collaboratively shares QA Symphony's core value proposition and merger overview.5:52–7:55 · Guest disagreement 1/10 Merger Catalysts and Market Displacement Opportunity Nathan asks what sparked the merger and checks if key metrics shifted. David details geographic synergies and the market displacement of legacy providers like Micro Focus.7:55–11:04 · Guest disagreement 2/10 Executive Governance and Combined Financial Scale Nathan pushes on leadership egos, cuts in to extract combined ARR figures, and questions whether shared investor Insight is driving biased exit multiples.11:06–13:08 · Guest disagreement 2/10 DevOps Landscape and Future Growth Trajectory Nathan cites competitor revenues and directly interrupts David's broader ecosystem explanation to ask whether future acquisitions and roll-ups are planned.13:08–16:37 · Guest disagreement 1/10 Internal Alignment, Global Scale, and Merger Mechanics Nathan presses on merger deal mechanics, probing cap table rollover and confirming whether the transaction involved cash or was strictly a stock swap.16:37–18:00 · Guest disagreement 0/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard rapid-fire Famous Five questionnaire in a friendly, conversational manner before summarizing the company's trajectory.0:00–2:29 · Nathan pushing back 0/10 Promotion of Nathan Latka's Bestselling Book Segment is an opening monologue and promotional spot for the host's book along with the show intro. There is no active dialogue with the guest.2:29–5:52 · Nathan pushing back 0/10 Introducing David Keil and Past Metrics Nathan introduces David by reciting detailed metrics from their previous interview. David collaboratively shares QA Symphony's core value proposition and merger overview.5:52–7:55 · Nathan pushing back 2/10 Merger Catalysts and Market Displacement Opportunity Nathan asks what sparked the merger and checks if key metrics shifted. David details geographic synergies and the market displacement of legacy providers like Micro Focus.7:55–11:04 · Nathan pushing back 5/10 Executive Governance and Combined Financial Scale Nathan pushes on leadership egos, cuts in to extract combined ARR figures, and questions whether shared investor Insight is driving biased exit multiples.11:06–13:08 · Nathan pushing back 4/10 DevOps Landscape and Future Growth Trajectory Nathan cites competitor revenues and directly interrupts David's broader ecosystem explanation to ask whether future acquisitions and roll-ups are planned.13:08–16:37 · Nathan pushing back 3/10 Internal Alignment, Global Scale, and Merger Mechanics Nathan presses on merger deal mechanics, probing cap table rollover and confirming whether the transaction involved cash or was strictly a stock swap.16:37–18:00 · Nathan pushing back 0/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard rapid-fire Famous Five questionnaire in a friendly, conversational manner before summarizing the company's trajectory.

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 30% · guest 70%3:00 · Nathan 30% · guest 70%6:00 · Nathan 22.3% · guest 77.7%6:00 · Nathan 22.3% · guest 77.7%9:00 · Nathan 37.4% · guest 62.6%9:00 · Nathan 37.4% · guest 62.6%12:00 · Nathan 20.5% · guest 79.5%12:00 · Nathan 20.5% · guest 79.5%15:00 · Nathan 34.5% · guest 65.5%15:00 · Nathan 34.5% · guest 65.5%18:00 · Nathan 96.2% · guest 3.8%18:00 · Nathan 96.2% · guest 3.8%
Sharpest disagreement ▶ 11:28 Reframing competitor dynamics versus legacy replacement

David pushes back on Nathan's competitive roll-up premise, insisting they view peers as potential ecosystem partners rather than head-to-head threats while targeting legacy vendors.

 Hardest push from Nathan ▶ 12:41 Direct interruption on future M&A plans

Nathan cuts through David's high-level industry explanation to bluntly demand a direct yes-or-no answer on whether more acquisitions are planned.

 Biggest teaching moment ▶ 6:01 Explaining complementary market mechanics and legacy shifts

David educates Nathan on the geographic and product complementarities of QA Symphony and Tricentis, breaking down the decline of legacy tools like Micro Focus in the $35B market.

 Nathan holds their own ▶ 9:57 Demonstrating knowledge of private equity exit multiples

Nathan showcases his financial acumen by detailing how venture firms like Insight engineer larger ARR bases to secure higher valuation multiples from PE firms like Vista.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Promotion of Nathan Latka's Bestselling Book 0000 Segment is an opening monologue and promotional spot for the host's book along with the show intro. There is no active dialogue with the guest.
Introducing David Keil and Past Metrics 4100 Nathan introduces David by reciting detailed metrics from their previous interview. David collaboratively shares QA Symphony's core value proposition and merger overview.
Merger Catalysts and Market Displacement Opportunity 4212 Nathan asks what sparked the merger and checks if key metrics shifted. David details geographic synergies and the market displacement of legacy providers like Micro Focus.
Executive Governance and Combined Financial Scale 6225 Nathan pushes on leadership egos, cuts in to extract combined ARR figures, and questions whether shared investor Insight is driving biased exit multiples.
DevOps Landscape and Future Growth Trajectory 6224 Nathan cites competitor revenues and directly interrupts David's broader ecosystem explanation to ask whether future acquisitions and roll-ups are planned.
Internal Alignment, Global Scale, and Merger Mechanics 5213 Nathan presses on merger deal mechanics, probing cap table rollover and confirming whether the transaction involved cash or was strictly a stock swap.
The Famous Five Rapid-Fire Questions 2000 Nathan conducts the standard rapid-fire Famous Five questionnaire in a friendly, conversational manner before summarizing the company's trajectory.

Statements from this episode (12)

Assertion Not checkable as stated
QA Symphony grows nearly 100% YoY to hit $20M ARR
“We continue to have nearly a hundred percent growth year over year. We're about to hit that twenty million recurring revenue mark this month. We'll celebrate that in about two weeks.”
David Keil Apr 10, 2019 ▶ 4:32
Disclosure
QA Symphony-Tricentis merger expects September close and year-end integration
“We expect to close that deal legally in early September and come together as one cohesive company by the end of the year.”
David Keil Apr 10, 2019 ▶ 5:46
Assertion Supported
Keil estimates the overall software testing market at $35 billion
“And we believe, as one company now, we are extremely well positioned to undoubtedly lead this space of overall software testing, which is a thirty five billion dollar market.”
David Keil Apr 10, 2019 ▶ 6:42
Assertion Supported
Keil claims Micro Focus's legacy HP software business is declining rapidly
“HP merged with its software business with Microfocus a year ago. And it's again, public record that that business has been declining very rapidly.”
David Keil Apr 10, 2019 ▶ 7:01
Disclosure
QA Symphony reaches 145 employees and 648 customers
“So we're at about 145 now employees. And about 648 customers as of this Monday.”
David Keil Apr 10, 2019 ▶ 7:45
Assertion Not checkable as stated
Merged Tricentis and QASymphony entity targets $80M to $100M ARR
“Yeah, yeah, yeah, we're gonna be in that 80 to a hundred range.”
David Keil Apr 10, 2019 ▶ 9:54
Assertion Not checkable as stated
Combined Tricentis-QASymphony entity expects revenue growth over 70% YoY
“Listen, we're growing as a collective company, you know, in kind of the, you know, 70% plus.”
David Keil Apr 10, 2019 ▶ 12:27
Prediction Not checkable as stated
Keil predicts merged Tricentis-QASymphony can reach a billion-dollar valuation
“We have no reason to believe we can't get to be a billion dollar company, and I'm sure there'll be some others that also have a similar path.”
David Keil Apr 10, 2019 ▶ 12:34
Disclosure
QASymphony-Tricentis merger avoids layoffs and begins massive hiring phase
“What we were able to say here with a hundred percent confidence and credibility is that, There was no cost reduction, that this is all about growth, that the teams are entirely complimentary, and we literally are in a massive hiring phase and are not reducing …”
David Keil Apr 10, 2019 ▶ 13:26
Disclosure
QASymphony and Tricentis will unite platforms, launching first phase in October
“No, we're absolutely going to combine the product strategy will have a combination of the different aspects into one common platform. And we actually are going to launch the first phase of that combined entity at accelerate in October, which is Tricentis' annu…”
David Keil Apr 10, 2019 ▶ 15:21
Disclosure
All QASymphony institutional investors rolled equity into merged Tricentis entity
“In, in this case, all of our institutional investors were, have been extremely, Excited to remain with the company and feel very confident. So they've rolled their investment forward.”
David Keil Apr 10, 2019 ▶ 15:59
Disclosure
Keil confirms QASymphony-Tricentis merger was an all-stock deal
“No, no cash. Tricentis had significant Cash on their balance sheet from raising money two years ago, so that was not a need that we have at this time.”
David Keil Apr 10, 2019 ▶ 16:21
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