StarZero All shows Try the podcast clipper →

Jul 25, 2018 · 23m · top-founders

1096 How TapClicks is Managaing 60% yoy Growth in Marketing Dashboard Space

Babak Hedayati · 12m 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

In this interview with Nathan Latka, TapClicks founder and CEO Babak Hedayati discusses scaling his marketing operations and analytics platform to $1.1 million in monthly recurring revenue with 60% year-over-year growth. Babak details the company's capital-efficient financing strategy, customer acquisition economics, and pricing segmentation across 3,000 paying agency and enterprise clients.

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 39.7% of the talking time here. How this is scored →

Nathan as informed peer 5.2 Guest teaching 2.6 Guest disagreement 3.0 Nathan pushing back 4.8
05100:0010:0020:001:26–5:22 · Nathan as informed peer 3/10 Executive Career and Semiconductor Turnaround Latka explores Hedayati's executive background in semiconductors and the founding story of TapClicks. Hedayati clarifies how TapClicks differentiates itself from generalist dashboard tools like Domo by focusing exclusively on marketing integrations.5:23–8:24 · Nathan as informed peer 5/10 Pricing Tiers, Headcount, and Capital Structure Latka challenges Hedayati on calling TapClicks bootstrapped after Hedayati admits to raising five million dollars from an outside investor. Hedayati defends his phrasing based on a 2015 merger altering the capital structure.8:24–10:38 · Nathan as informed peer 6/10 Customer Count and Surpassing $1.1 Million Monthly Revenue Latka calculates implied revenue from Hedayati's initial 3000 customer count and 3000 dollar ARPU figure, highlighting that the arithmetic does not align. Hedayati clarifies that the true blended ARPU is closer to 300 dollars.10:38–13:39 · Nathan as informed peer 5/10 Unit Economics and Non-Dilutive Debt Financing Latka digs into TapClicks' three-month CAC payback period and questions why the company is not investing more aggressively in marketing. Hedayati discusses raising three million dollars in venture debt from SaaS Capital to avoid equity dilution.13:40–20:14 · Nathan as informed peer 7/10 Retention Dynamics, NPS, and Churn Debate A prolonged debate ensues when Hedayati repeatedly declines to share gross churn numbers, admitting he is actively dodging the question. Latka pushes back on Hedayati's ambition for negative churn in sub-200 dollar accounts, citing industry-wide SaaS dynamics.1:26–5:22 · Guest teaching 3/10 Executive Career and Semiconductor Turnaround Latka explores Hedayati's executive background in semiconductors and the founding story of TapClicks. Hedayati clarifies how TapClicks differentiates itself from generalist dashboard tools like Domo by focusing exclusively on marketing integrations.5:23–8:24 · Guest teaching 2/10 Pricing Tiers, Headcount, and Capital Structure Latka challenges Hedayati on calling TapClicks bootstrapped after Hedayati admits to raising five million dollars from an outside investor. Hedayati defends his phrasing based on a 2015 merger altering the capital structure.8:24–10:38 · Guest teaching 2/10 Customer Count and Surpassing $1.1 Million Monthly Revenue Latka calculates implied revenue from Hedayati's initial 3000 customer count and 3000 dollar ARPU figure, highlighting that the arithmetic does not align. Hedayati clarifies that the true blended ARPU is closer to 300 dollars.10:38–13:39 · Guest teaching 2/10 Unit Economics and Non-Dilutive Debt Financing Latka digs into TapClicks' three-month CAC payback period and questions why the company is not investing more aggressively in marketing. Hedayati discusses raising three million dollars in venture debt from SaaS Capital to avoid equity dilution.13:40–20:14 · Guest teaching 4/10 Retention Dynamics, NPS, and Churn Debate A prolonged debate ensues when Hedayati repeatedly declines to share gross churn numbers, admitting he is actively dodging the question. Latka pushes back on Hedayati's ambition for negative churn in sub-200 dollar accounts, citing industry-wide SaaS dynamics.1:26–5:22 · Guest disagreement 1/10 Executive Career and Semiconductor Turnaround Latka explores Hedayati's executive background in semiconductors and the founding story of TapClicks. Hedayati clarifies how TapClicks differentiates itself from generalist dashboard tools like Domo by focusing exclusively on marketing integrations.5:23–8:24 · Guest disagreement 4/10 Pricing Tiers, Headcount, and Capital Structure Latka challenges Hedayati on calling TapClicks bootstrapped after Hedayati admits to raising five million dollars from an outside investor. Hedayati defends his phrasing based on a 2015 merger altering the capital structure.8:24–10:38 · Guest disagreement 2/10 Customer Count and Surpassing $1.1 Million Monthly Revenue Latka calculates implied revenue from Hedayati's initial 3000 customer count and 3000 dollar ARPU figure, highlighting that the arithmetic does not align. Hedayati clarifies that the true blended ARPU is closer to 300 dollars.10:38–13:39 · Guest disagreement 2/10 Unit Economics and Non-Dilutive Debt Financing Latka digs into TapClicks' three-month CAC payback period and questions why the company is not investing more aggressively in marketing. Hedayati discusses raising three million dollars in venture debt from SaaS Capital to avoid equity dilution.13:40–20:14 · Guest disagreement 6/10 Retention Dynamics, NPS, and Churn Debate A prolonged debate ensues when Hedayati repeatedly declines to share gross churn numbers, admitting he is actively dodging the question. Latka pushes back on Hedayati's ambition for negative churn in sub-200 dollar accounts, citing industry-wide SaaS dynamics.1:26–5:22 · Nathan pushing back 1/10 Executive Career and Semiconductor Turnaround Latka explores Hedayati's executive background in semiconductors and the founding story of TapClicks. Hedayati clarifies how TapClicks differentiates itself from generalist dashboard tools like Domo by focusing exclusively on marketing integrations.5:23–8:24 · Nathan pushing back 6/10 Pricing Tiers, Headcount, and Capital Structure Latka challenges Hedayati on calling TapClicks bootstrapped after Hedayati admits to raising five million dollars from an outside investor. Hedayati defends his phrasing based on a 2015 merger altering the capital structure.8:24–10:38 · Nathan pushing back 5/10 Customer Count and Surpassing $1.1 Million Monthly Revenue Latka calculates implied revenue from Hedayati's initial 3000 customer count and 3000 dollar ARPU figure, highlighting that the arithmetic does not align. Hedayati clarifies that the true blended ARPU is closer to 300 dollars.10:38–13:39 · Nathan pushing back 4/10 Unit Economics and Non-Dilutive Debt Financing Latka digs into TapClicks' three-month CAC payback period and questions why the company is not investing more aggressively in marketing. Hedayati discusses raising three million dollars in venture debt from SaaS Capital to avoid equity dilution.13:40–20:14 · Nathan pushing back 8/10 Retention Dynamics, NPS, and Churn Debate A prolonged debate ensues when Hedayati repeatedly declines to share gross churn numbers, admitting he is actively dodging the question. Latka pushes back on Hedayati's ambition for negative churn in sub-200 dollar accounts, citing industry-wide SaaS dynamics.

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

0:00 · Nathan 53.9% · guest 46.1%0:00 · Nathan 53.9% · guest 46.1%3:00 · Nathan 21% · guest 79%3:00 · Nathan 21% · guest 79%6:00 · Nathan 32.6% · guest 67.4%6:00 · Nathan 32.6% · guest 67.4%9:00 · Nathan 52.5% · guest 47.5%9:00 · Nathan 52.5% · guest 47.5%12:00 · Nathan 33.6% · guest 66.4%12:00 · Nathan 33.6% · guest 66.4%15:00 · Nathan 40.8% · guest 59.2%15:00 · Nathan 40.8% · guest 59.2%18:00 · Nathan 26.6% · guest 73.4%18:00 · Nathan 26.6% · guest 73.4%21:00 · Nathan 59.5% · guest 40.5%21:00 · Nathan 59.5% · guest 40.5%
Sharpest disagreement ▶ 15:45 Hedayati admits dodging gross churn question

Hedayati explicitly acknowledges Latka's calculation while refusing to provide gross churn, telling Latka he is intentionally trying to avoid answering.

 Hardest push from Nathan ▶ 6:58 Latka challenges the bootstrapped label

Latka directly confronts Hedayati for claiming bootstrapping status despite taking five million dollars in outside capital.

 Biggest teaching moment ▶ 4:46 Hedayati educates Latka on deep marketing integrations

Hedayati reframes Latka's comparison to Domo and Klipfolio by explaining TapClicks' 175 native marketing APIs and auto-connector architecture.

 Nathan holds their own ▶ 18:18 Latka notes impossibility of sub-$200 negative churn

Latka draws on SaaS benchmark knowledge to point out that accounts under 200 dollars ARPU lack the expansion potential required for net negative churn, forcing Hedayati to concede the point.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Executive Career and Semiconductor Turnaround 3311 Latka explores Hedayati's executive background in semiconductors and the founding story of TapClicks. Hedayati clarifies how TapClicks differentiates itself from generalist dashboard tools like Domo by focusing exclusively on marketing integrations.
Pricing Tiers, Headcount, and Capital Structure 5246 Latka challenges Hedayati on calling TapClicks bootstrapped after Hedayati admits to raising five million dollars from an outside investor. Hedayati defends his phrasing based on a 2015 merger altering the capital structure.
Customer Count and Surpassing $1.1 Million Monthly Revenue 6225 Latka calculates implied revenue from Hedayati's initial 3000 customer count and 3000 dollar ARPU figure, highlighting that the arithmetic does not align. Hedayati clarifies that the true blended ARPU is closer to 300 dollars.
Unit Economics and Non-Dilutive Debt Financing 5224 Latka digs into TapClicks' three-month CAC payback period and questions why the company is not investing more aggressively in marketing. Hedayati discusses raising three million dollars in venture debt from SaaS Capital to avoid equity dilution.
Retention Dynamics, NPS, and Churn Debate 7468 A prolonged debate ensues when Hedayati repeatedly declines to share gross churn numbers, admitting he is actively dodging the question. Latka pushes back on Hedayati's ambition for negative churn in sub-200 dollar accounts, citing industry-wide SaaS dynamics.

Statements from this episode (11)

Disclosure
Hedayati invested roughly $250,000 of personal capital into TapClicks
“It's more like a quarter million dollars.”
Babak Hedayati Jul 25, 2018 ▶ 3:27
Assertion Supported
TapClicks has 175 direct API integrations and 1,400 connector integrations
“So we have an order of magnitude more integrations and very deep integrations, like a 175 of them through APIs, just on marketing. And then we have 1400 additional ones through our auto connector import wizard.”
Babak Hedayati Jul 25, 2018 ▶ 4:57
Assertion Not checkable as stated
Hedayati: TapClicks enterprise clients pay $50k to $80k monthly
“The median range is thousands, but we do have companies that are in the 50 to 80,000 dollars a month range.”
Babak Hedayati Jul 25, 2018 ▶ 5:52
Assertion Supported
Hedayati: TapClicks has 100 employees across four North American offices
“We have about a hundred people in the company. We are located in San Jose, Boston, Montreal, and Nashville.”
Babak Hedayati Jul 25, 2018 ▶ 6:12
Disclosure
Hedayati: TapClicks raised about $5M from an individual investor
“He's put in about five million.”
Babak Hedayati Jul 25, 2018 ▶ 6:57
Assertion Not checkable as stated
Hedayati: TapClicks has over 3,000 direct paying customers
“Our direct paying customers are over 3000 agencies and media companies and some brands.”
Babak Hedayati Jul 25, 2018 ▶ 8:47
Assertion Not checkable as stated
Hedayati: TapClicks is growing at 60% year-over-year
“60%.”
Babak Hedayati Jul 25, 2018 ▶ 9:46
Assertion Not checkable as stated
Hedayati: TapClicks generates over $1.1 million in monthly revenue
“1.1 million.”
Babak Hedayati Jul 25, 2018 ▶ 10:16
Assertion Not checkable as stated
Hedayati: TapClicks achieves CAC payback in under 90 days across all tiers
“The CAC on all of them, the customer acquisition cost versus the return is about the same for all of us. Which is what? That investment is, is less than 90 days.”
Babak Hedayati Jul 25, 2018 ▶ 11:08
Insight
Hedayati: Raising debt for growth is preferable to equity dilution
“I mean, again, from our perspective, if we can raise debt to grow the business and not dilute the company and the folks that works there, it's a good outcome. And we think we can do more of that.”
Babak Hedayati Jul 25, 2018 ▶ 12:51
Assertion Not checkable as stated
TapClicks achieved approximately 110% net revenue retention last year
“When you take churn into consideration, it's close to 10% growth of the existing customer base. Last year.”
Babak Hedayati Jul 25, 2018 ▶ 15:27
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more