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Nov 28, 2018 · 19m · top-founders

1222 Workable CEO on Saying "No" to Acquisition Offers, $20m+ in ARR

Nikos Moraitakis · 8m spoken Nathan Latka · 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

Workable founder and CEO Nikos Moraitakis discusses how his recruiting platform reached over $20 million in ARR through organic SEO, strong unit economics, and 30% customer reactivations while maintaining the independence to turn down nine-figure buyout offers.

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 48.5% of the talking time here. How this is scored →

Nathan as informed peer 6.4 Guest teaching 2.4 Guest disagreement 2.0 Nathan pushing back 3.1
05100:0010:002:23–4:48 · Nathan as informed peer 6/10 Workable Target Market and HR Tech Landscape Nathan probes how Workable differs from major platforms like Indeed and asks about market valuation. Nikos clarifies the distinction between job boards and hiring workflow software.4:48–7:52 · Nathan as informed peer 7/10 SaaS Business Model and Reaching $20M ARR Nathan does rapid-fire math on ARR cohorts and customer pricing, pushing back skeptically when Nikos claims early growth happened effortlessly without a sales team.7:52–10:04 · Nathan as informed peer 7/10 Executing the Inbound Content and SEO Strategy Nathan looks up Workable's live Google search rankings on the spot while Nikos details their early template-based inbound marketing strategy.10:04–12:42 · Nathan as informed peer 8/10 SMB Churn Dynamics and Customer Reactivation Nathan actively corrects Nikos when he mistakenly claims gross revenue churn is negative, and breaks down the exact math of expansion versus gross churn and customer reactivation.12:42–15:01 · Nathan as informed peer 7/10 Unit Economics, Capital Recycling, and Revenue Growth Nathan calculates CAC payback math and challenges Nikos's small extension round as a potential sign of a valuation mismatch, which Nikos reframes around profitability.15:01–17:09 · Nathan as informed peer 6/10 Resisting Acquisition Offers and Founder Philosophy Nathan challenges Nikos's immediate rejection of a hypothetical acquisition offer and argues for strategic synergies, but Nikos stands firm on founder autonomy and cynicism towards acquisitions.17:10–18:27 · Nathan as informed peer 4/10 The Famous Five Rapid-Fire Questions A standard, friendly Famous Five rapid-fire closing segment with quick personal and company reflection answers.2:23–4:48 · Guest teaching 3/10 Workable Target Market and HR Tech Landscape Nathan probes how Workable differs from major platforms like Indeed and asks about market valuation. Nikos clarifies the distinction between job boards and hiring workflow software.4:48–7:52 · Guest teaching 2/10 SaaS Business Model and Reaching $20M ARR Nathan does rapid-fire math on ARR cohorts and customer pricing, pushing back skeptically when Nikos claims early growth happened effortlessly without a sales team.7:52–10:04 · Guest teaching 2/10 Executing the Inbound Content and SEO Strategy Nathan looks up Workable's live Google search rankings on the spot while Nikos details their early template-based inbound marketing strategy.10:04–12:42 · Guest teaching 4/10 SMB Churn Dynamics and Customer Reactivation Nathan actively corrects Nikos when he mistakenly claims gross revenue churn is negative, and breaks down the exact math of expansion versus gross churn and customer reactivation.12:42–15:01 · Guest teaching 2/10 Unit Economics, Capital Recycling, and Revenue Growth Nathan calculates CAC payback math and challenges Nikos's small extension round as a potential sign of a valuation mismatch, which Nikos reframes around profitability.15:01–17:09 · Guest teaching 3/10 Resisting Acquisition Offers and Founder Philosophy Nathan challenges Nikos's immediate rejection of a hypothetical acquisition offer and argues for strategic synergies, but Nikos stands firm on founder autonomy and cynicism towards acquisitions.17:10–18:27 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions A standard, friendly Famous Five rapid-fire closing segment with quick personal and company reflection answers.2:23–4:48 · Guest disagreement 1/10 Workable Target Market and HR Tech Landscape Nathan probes how Workable differs from major platforms like Indeed and asks about market valuation. Nikos clarifies the distinction between job boards and hiring workflow software.4:48–7:52 · Guest disagreement 2/10 SaaS Business Model and Reaching $20M ARR Nathan does rapid-fire math on ARR cohorts and customer pricing, pushing back skeptically when Nikos claims early growth happened effortlessly without a sales team.7:52–10:04 · Guest disagreement 1/10 Executing the Inbound Content and SEO Strategy Nathan looks up Workable's live Google search rankings on the spot while Nikos details their early template-based inbound marketing strategy.10:04–12:42 · Guest disagreement 2/10 SMB Churn Dynamics and Customer Reactivation Nathan actively corrects Nikos when he mistakenly claims gross revenue churn is negative, and breaks down the exact math of expansion versus gross churn and customer reactivation.12:42–15:01 · Guest disagreement 3/10 Unit Economics, Capital Recycling, and Revenue Growth Nathan calculates CAC payback math and challenges Nikos's small extension round as a potential sign of a valuation mismatch, which Nikos reframes around profitability.15:01–17:09 · Guest disagreement 4/10 Resisting Acquisition Offers and Founder Philosophy Nathan challenges Nikos's immediate rejection of a hypothetical acquisition offer and argues for strategic synergies, but Nikos stands firm on founder autonomy and cynicism towards acquisitions.17:10–18:27 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions A standard, friendly Famous Five rapid-fire closing segment with quick personal and company reflection answers.2:23–4:48 · Nathan pushing back 2/10 Workable Target Market and HR Tech Landscape Nathan probes how Workable differs from major platforms like Indeed and asks about market valuation. Nikos clarifies the distinction between job boards and hiring workflow software.4:48–7:52 · Nathan pushing back 3/10 SaaS Business Model and Reaching $20M ARR Nathan does rapid-fire math on ARR cohorts and customer pricing, pushing back skeptically when Nikos claims early growth happened effortlessly without a sales team.7:52–10:04 · Nathan pushing back 2/10 Executing the Inbound Content and SEO Strategy Nathan looks up Workable's live Google search rankings on the spot while Nikos details their early template-based inbound marketing strategy.10:04–12:42 · Nathan pushing back 5/10 SMB Churn Dynamics and Customer Reactivation Nathan actively corrects Nikos when he mistakenly claims gross revenue churn is negative, and breaks down the exact math of expansion versus gross churn and customer reactivation.12:42–15:01 · Nathan pushing back 4/10 Unit Economics, Capital Recycling, and Revenue Growth Nathan calculates CAC payback math and challenges Nikos's small extension round as a potential sign of a valuation mismatch, which Nikos reframes around profitability.15:01–17:09 · Nathan pushing back 5/10 Resisting Acquisition Offers and Founder Philosophy Nathan challenges Nikos's immediate rejection of a hypothetical acquisition offer and argues for strategic synergies, but Nikos stands firm on founder autonomy and cynicism towards acquisitions.17:10–18:27 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions A standard, friendly Famous Five rapid-fire closing segment with quick personal and company reflection answers.

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

0:00 · Nathan 85.2% · guest 14.8%0:00 · Nathan 85.2% · guest 14.8%3:00 · Nathan 30.6% · guest 69.4%3:00 · Nathan 30.6% · guest 69.4%6:00 · Nathan 35.2% · guest 64.8%6:00 · Nathan 35.2% · guest 64.8%9:00 · Nathan 29% · guest 71%9:00 · Nathan 29% · guest 71%12:00 · Nathan 44.7% · guest 55.3%12:00 · Nathan 44.7% · guest 55.3%15:00 · Nathan 47.4% · guest 52.6%15:00 · Nathan 47.4% · guest 52.6%18:00 · Nathan 83.7% · guest 16.3%18:00 · Nathan 83.7% · guest 16.3%
Sharpest disagreement ▶ 16:12 Cynicism towards corporate acquisition promises

Nikos bluntly rejects Nathan's argument about post-acquisition synergies, maintaining a cynical view that once acquired, founders lose total control over their vision.

 Hardest push from Nathan ▶ 14:24 Challenging valuation and bridge round narrative

Nathan directly challenges Nikos's narrative by suggesting their recent $5M extension round was an inside bridge due to an inability to hit target valuations.

 Biggest teaching moment ▶ 4:03 Explaining recruitment workflow vs job boards

Nikos explains the functional difference between candidate sourcing channels like Indeed and end-to-end recruitment management software.

 Nathan holds their own ▶ 11:47 Catching mathematical slip on gross churn

Nathan immediately catches Nikos's confusion between net and gross churn, clarifying that gross churn cannot be negative and calculating the exact expansion and churn percentages.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Workable Target Market and HR Tech Landscape 6312 Nathan probes how Workable differs from major platforms like Indeed and asks about market valuation. Nikos clarifies the distinction between job boards and hiring workflow software.
SaaS Business Model and Reaching $20M ARR 7223 Nathan does rapid-fire math on ARR cohorts and customer pricing, pushing back skeptically when Nikos claims early growth happened effortlessly without a sales team.
Executing the Inbound Content and SEO Strategy 7212 Nathan looks up Workable's live Google search rankings on the spot while Nikos details their early template-based inbound marketing strategy.
SMB Churn Dynamics and Customer Reactivation 8425 Nathan actively corrects Nikos when he mistakenly claims gross revenue churn is negative, and breaks down the exact math of expansion versus gross churn and customer reactivation.
Unit Economics, Capital Recycling, and Revenue Growth 7234 Nathan calculates CAC payback math and challenges Nikos's small extension round as a potential sign of a valuation mismatch, which Nikos reframes around profitability.
Resisting Acquisition Offers and Founder Philosophy 6345 Nathan challenges Nikos's immediate rejection of a hypothetical acquisition offer and argues for strategic synergies, but Nikos stands firm on founder autonomy and cynicism towards acquisitions.
The Famous Five Rapid-Fire Questions 4111 A standard, friendly Famous Five rapid-fire closing segment with quick personal and company reflection answers.

Statements from this episode (18)

Prediction Not checkable as stated
Moraitakis predicts Glassdoor is worth far more than $1.2 billion
“Oh, I think that they're going to be worth a lot more than that.”
Nikos Moraitakis Nov 28, 2018 ▶ 2:29
Disclosure
Moraitakis: Workable counts 6,000 customers, adding up to 500 monthly
“In nearly a hundred countries right now 6000 customers and adding something like four or 500 every month.”
Nikos Moraitakis Nov 28, 2018 ▶ 2:56
Assertion Contradicted
Moraitakis: Indeed finds candidates but lacks end-to-end recruiting workflow tools
“Well, Indeed is a job site and it helps you find candidates, but it doesn't help you manage the process, run your career pages, manage your interviews, manage your feedback.”
Nikos Moraitakis Nov 28, 2018 ▶ 4:06
Assertion Not checkable as stated
Moraitakis: Workable has surpassed $20 million in annual recurring revenue
“The company's making someone like a little bit over twenty million a year.”
Nikos Moraitakis Nov 28, 2018 ▶ 6:14
Assertion Not checkable as stated
Moraitakis: Workable reached $10M in revenue without a sales team
“We got to ten million revenue without having a sales team.”
Nikos Moraitakis Nov 28, 2018 ▶ 6:46
Assertion Not checkable as stated
Moraitakis: Workable generates 23 million unique annual visitors via content
“And we do about twenty three million unique visitors a year on our content.”
Nikos Moraitakis Nov 28, 2018 ▶ 7:14
Disclosure
Moraitakis: Workable created thousands of job description templates for inbound traffic
“We have every job description you can imagine. We have thousands of them. And right now in the beginning, we said, let's find the hundred most popular jobs out there.”
Nikos Moraitakis Nov 28, 2018 ▶ 8:42
Assertion Not checkable as stated
Moraitakis: Workable gained thousands of visits quickly from unoptimized WordPress posts
“We just really put the WordPress ad out there and just put them there with no organization or nothing. A few months later, we were getting thousands of hits of them.”
Nikos Moraitakis Nov 28, 2018 ▶ 9:31
Assertion Not checkable as stated
Moraitakis: 30% of Workable's monthly new business comes from returning customers
“About 30% of our new business every month It's returning customers, people who hired with us before they left and now they're hiring again and they're coming back.”
Nikos Moraitakis Nov 28, 2018 ▶ 10:30
Assertion Not checkable as stated
Moraitakis: Workable's net revenue retention is 101% to 102%
“Retention is over a hundred percent. It's about a 101, a 102.”
Nikos Moraitakis Nov 28, 2018 ▶ 11:14
Assertion Not checkable as stated
Moraitakis: Workable's annual gross revenue churn is around 15%
“The gross is something like 15%.”
Nikos Moraitakis Nov 28, 2018 ▶ 11:53
Assertion Not checkable as stated
Moraitakis: Workable SMB customer retention reaches 100% after year one
“After year one even for the smaller customers, retention is a hundred percent.”
Nikos Moraitakis Nov 28, 2018 ▶ 12:37
Assertion Not checkable as stated
Moraitakis: Workable minimum customer LTV is $3,500 to $4,000
“Oh, minimum lifetime value is something like three and a half to 4000 dollars.”
Nikos Moraitakis Nov 28, 2018 ▶ 12:50
Assertion Not checkable as stated
Moraitakis: Workable operates at an LTV to CAC ratio of 6.5
“If you, if your LTV over a CAC is more than three, ours is six and a half.”
Nikos Moraitakis Nov 28, 2018 ▶ 13:23
Assertion Not checkable as stated
Moraitakis: Workable generated $14 million in ARR in late 2017
“We were 12 months ago, we're at 14.”
Nikos Moraitakis Nov 28, 2018 ▶ 13:47
Prediction Not checkable as stated
Moraitakis: Workable will reach profitability in 2019
“Ah, yes. Sometime next year.”
Nikos Moraitakis Nov 28, 2018 ▶ 14:47
Disclosure
Moraitakis would reject a $100M to $150M acquisition offer for Workable
“I've been through this conversation so that I know the answer is no.”
Nikos Moraitakis Nov 28, 2018 ▶ 15:21
Insight
Moraitakis: Founders should only sell if growth stalls or enthusiasm fades
“You would sell if you don't see yourself doing this five years from now, or you don't see it being much bigger five years from now. But if both of those are true then it's very difficult to sell.”
Nikos Moraitakis Nov 28, 2018 ▶ 15:54
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