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Aug 20, 2018 · 21m · top-founders

1122 Sales Tech CEO "We've Passed $30m in ARR", 70% yoy growth

PJ Bouten · 11m 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 Showpad founder and CEO PJ Bouten to explore how the sales enablement platform scaled from a bootstrapped mobile app into a $30 million ARR enterprise software powerhouse.

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 39.1% of the talking time here. How this is scored →

Nathan as informed peer 6.3 Guest teaching 1.3 Guest disagreement 1.3 Nathan pushing back 3.3
05100:0010:0020:001:27–5:23 · Nathan as informed peer 6/10 Showpad Product Overview, Value Proposition, and Core Revenue Metrics Latka quickly converts Bouten's annual contract numbers into monthly equivalents and reconciles website list pricing with high enterprise ACVs to verify the thirty million ARR mark.5:24–10:04 · Nathan as informed peer 6/10 Founding Origins, Mobile Beachhead, and Distribution Strategy Latka repeatedly presses Bouten to name specific killer product features and distinguish between integration partnerships and genuine acquisition channels.10:07–18:06 · Nathan as informed peer 7/10 Sponsor Segment: Emma Email Marketing Platform Latka demonstrates strong SaaS literacy by breaking down Bouten's net revenue retention and gross churn to calculate implied expansion rate and acquisition cost allowances.18:07–20:35 · Nathan as informed peer 6/10 Fundraising Timeline, Capital Strategy, and Valuation Dynamics Latka probes the optics of Showpad raising a twenty-five million dollar round after a fifty million dollar round, inquiring directly if it was an unannounced down round.1:27–5:23 · Guest teaching 1/10 Showpad Product Overview, Value Proposition, and Core Revenue Metrics Latka quickly converts Bouten's annual contract numbers into monthly equivalents and reconciles website list pricing with high enterprise ACVs to verify the thirty million ARR mark.5:24–10:04 · Guest teaching 2/10 Founding Origins, Mobile Beachhead, and Distribution Strategy Latka repeatedly presses Bouten to name specific killer product features and distinguish between integration partnerships and genuine acquisition channels.10:07–18:06 · Guest teaching 1/10 Sponsor Segment: Emma Email Marketing Platform Latka demonstrates strong SaaS literacy by breaking down Bouten's net revenue retention and gross churn to calculate implied expansion rate and acquisition cost allowances.18:07–20:35 · Guest teaching 1/10 Fundraising Timeline, Capital Strategy, and Valuation Dynamics Latka probes the optics of Showpad raising a twenty-five million dollar round after a fifty million dollar round, inquiring directly if it was an unannounced down round.1:27–5:23 · Guest disagreement 1/10 Showpad Product Overview, Value Proposition, and Core Revenue Metrics Latka quickly converts Bouten's annual contract numbers into monthly equivalents and reconciles website list pricing with high enterprise ACVs to verify the thirty million ARR mark.5:24–10:04 · Guest disagreement 2/10 Founding Origins, Mobile Beachhead, and Distribution Strategy Latka repeatedly presses Bouten to name specific killer product features and distinguish between integration partnerships and genuine acquisition channels.10:07–18:06 · Guest disagreement 1/10 Sponsor Segment: Emma Email Marketing Platform Latka demonstrates strong SaaS literacy by breaking down Bouten's net revenue retention and gross churn to calculate implied expansion rate and acquisition cost allowances.18:07–20:35 · Guest disagreement 1/10 Fundraising Timeline, Capital Strategy, and Valuation Dynamics Latka probes the optics of Showpad raising a twenty-five million dollar round after a fifty million dollar round, inquiring directly if it was an unannounced down round.1:27–5:23 · Nathan pushing back 2/10 Showpad Product Overview, Value Proposition, and Core Revenue Metrics Latka quickly converts Bouten's annual contract numbers into monthly equivalents and reconciles website list pricing with high enterprise ACVs to verify the thirty million ARR mark.5:24–10:04 · Nathan pushing back 5/10 Founding Origins, Mobile Beachhead, and Distribution Strategy Latka repeatedly presses Bouten to name specific killer product features and distinguish between integration partnerships and genuine acquisition channels.10:07–18:06 · Nathan pushing back 2/10 Sponsor Segment: Emma Email Marketing Platform Latka demonstrates strong SaaS literacy by breaking down Bouten's net revenue retention and gross churn to calculate implied expansion rate and acquisition cost allowances.18:07–20:35 · Nathan pushing back 4/10 Fundraising Timeline, Capital Strategy, and Valuation Dynamics Latka probes the optics of Showpad raising a twenty-five million dollar round after a fifty million dollar round, inquiring directly if it was an unannounced down round.

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

0:00 · Nathan 71.5% · guest 28.5%0:00 · Nathan 71.5% · guest 28.5%3:00 · Nathan 22.2% · guest 77.8%3:00 · Nathan 22.2% · guest 77.8%6:00 · Nathan 14.8% · guest 85.2%6:00 · Nathan 14.8% · guest 85.2%9:00 · Nathan 52.7% · guest 47.3%9:00 · Nathan 52.7% · guest 47.3%12:00 · Nathan 24.5% · guest 75.5%12:00 · Nathan 24.5% · guest 75.5%15:00 · Nathan 29.8% · guest 70.2%15:00 · Nathan 29.8% · guest 70.2%18:00 · Nathan 51.3% · guest 48.7%18:00 · Nathan 51.3% · guest 48.7%21:00 · Nathan 95.7% · guest 4.3%21:00 · Nathan 95.7% · guest 4.3%
Sharpest disagreement ▶ 7:55 Rejecting the magic feature premise

Bouten reframes Latka's demand for a single killer feature, explaining that early enterprise mobile reliability and stability were what actually drove adoption.

 Hardest push from Nathan ▶ 19:14 Pressing on smaller follow-on round signal

Latka challenges the guest on market perception, asking whether taking twenty-five million after previously raising fifty million indicated a down round.

 Biggest teaching moment ▶ 7:55 Explaining early iPad enterprise constraints

Bouten explains the technical and market realities of 2011 enterprise mobility, detailing how avoiding app crashes and custom builds provided their primary moat.

 Nathan holds their own ▶ 16:16 Latka calculates implied expansion and CAC ceilings

Latka effortlessly does the math live on air, converting 130 percent NRR and single-digit churn into an exact 35 percent expansion rate and fifty-thousand-dollar CAC allowance.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Showpad Product Overview, Value Proposition, and Core Revenue Metrics 6112 Latka quickly converts Bouten's annual contract numbers into monthly equivalents and reconciles website list pricing with high enterprise ACVs to verify the thirty million ARR mark.
Founding Origins, Mobile Beachhead, and Distribution Strategy 6225 Latka repeatedly presses Bouten to name specific killer product features and distinguish between integration partnerships and genuine acquisition channels.
Sponsor Segment: Emma Email Marketing Platform 7112 Latka demonstrates strong SaaS literacy by breaking down Bouten's net revenue retention and gross churn to calculate implied expansion rate and acquisition cost allowances.
Fundraising Timeline, Capital Strategy, and Valuation Dynamics 6114 Latka probes the optics of Showpad raising a twenty-five million dollar round after a fifty million dollar round, inquiring directly if it was an unannounced down round.

Statements from this episode (14)

Assertion Not checkable as stated
Showpad has 1,000 paying B2B customers in 50 countries
“We're focused on B to B, a thousand customers in about 50 countries.”
PJ Bouten Aug 20, 2018 ▶ 2:34
Assertion Not checkable as stated
Showpad ACV is roughly $30k with upfront annual contracts
“Our ACV right now is, is about a 30 K. So 30,000 dollars a year. Yeah. We're working with annual contracts. It's paid up front.”
PJ Bouten Aug 20, 2018 ▶ 4:12
Assertion Not checkable as stated
Showpad has three enterprise customers paying over $1 million annually
“We have now Three customers who are over a million per year. We have a couple of customers in the 500 K, 600 K range per year.”
PJ Bouten Aug 20, 2018 ▶ 4:36
Assertion Not checkable as stated
Showpad crossed $30 million in ARR
“Yeah, thirty million in ARR. Yeah, we crossed that. Mark end of the year.”
PJ Bouten Aug 20, 2018 ▶ 5:02
Assertion Not checkable as stated
Showpad grew revenue 70% to 75% year over year
“We've grown the business about 70, 75% year over year.”
PJ Bouten Aug 20, 2018 ▶ 5:11
Disclosure
Showpad relies entirely on direct sales and uses no resellers
“Our biggest channel is just direct sales. We do all of our sales is directly. We don't have resellers.”
PJ Bouten Aug 20, 2018 ▶ 9:27
Disclosure
Showpad Sets Enterprise AE Quotas at $1M and Mid-Market at $600K
“Full quota for, at Showpad and Enterprise will be around a million for enterprise sales, and will be around 600 K for mid-market.”
PJ Bouten Aug 20, 2018 ▶ 13:49
Disclosure
Showpad Operates at an LTV to CAC Ratio of 4:1
“Our, you know, what is it? CAC over or LTV over CSC is about four ratio of four.”
PJ Bouten Aug 20, 2018 ▶ 15:35
Disclosure
Showpad Achieved 130% Net Revenue Retention Last Year
“And that retention is 130% or was a 130% now last year.”
PJ Bouten Aug 20, 2018 ▶ 16:00
Disclosure
Showpad LTV Reaches Approximately $200,000
“Our LTV is, is, is actually now around the 200 K mark.”
PJ Bouten Aug 20, 2018 ▶ 16:48
Disclosure
Showpad's CAC Payback Period Averages 1.5 to 2 Years
“Average across Showpad, it's about, it's close to two years, so it's in the one and a half to two year range.”
PJ Bouten Aug 20, 2018 ▶ 17:10
Assertion Supported
Bouten: Showpad has raised about $90 million in total capital
“About 90, ninety million.”
PJ Bouten Aug 20, 2018 ▶ 18:12
Assertion Not checkable as stated
Showpad bootstrapped to $500K ARR before raising external capital
“So the first two years we bootstrapped the business. I love that. We got to 400 K, four or 500 K in ARR before we raised our first round.”
PJ Bouten Aug 20, 2018 ▶ 18:18
Assertion Supported
Showpad recently closed a $25 million funding round
“Last round we did we did a twenty-five million dollar round just a couple of weeks ago.”
PJ Bouten Aug 20, 2018 ▶ 18:39
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