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Jan 5, 2018 · 18m · top-founders

895 $10m+ Balancing Act Between SaaS and Variable CPM Revenue

Eric Matlick · 10m spoken Nathan Latka · 6m spoken
0:00 / 0:00

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

Host Nathan Latka interviews Bombora co-founder Eric Matlick to discuss building a profitable B2B intent data cooperative, scaling past $10 million in revenue, and strategically balancing recurring SaaS subscriptions with variable CPM data monetization.

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 38.2% of the talking time here. How this is scored →

Nathan as informed peer 5.5 Guest teaching 3.0 Guest disagreement 1.8 Nathan pushing back 4.8
05100:0010:000:48–6:10 · Nathan as informed peer 5/10 Introducing Guest Eric Matlick of Bombora Nathan probes into the distinction between Bombora's pure SaaS subscription revenue versus CPM-based variable revenue. Eric clarifies the 60/40 revenue split and explains how the SaaS product feeds into the variable data business.6:14–9:12 · Nathan as informed peer 6/10 Commercial Break: ProsperWorks CRM Sponsorship Following the mid-roll ad read, Nathan draws parallels between Bombora and broader ad tech margin models like MediaOcean. Eric pushes back gently by distinguishing Bombora as an agnostic data cooperative across sales/marketing stacks rather than a point solution.9:12–14:14 · Nathan as informed peer 6/10 Bombora's Spin-Out Strategy, Funding, and Madison Logic Exit Nathan relentlessly digs into the corporate mechanics of spinning out Bombora from Madison Logic, cap table structure, and the exit valuation of the original entity. Eric provides strategic details on cap tables but deflects on exact acquisition numbers.14:15–17:49 · Nathan as informed peer 5/10 Bombora's Growth Metrics, Scale, and SaaS-CPM Balance Nathan asks whether Bombora will eventually transition completely to SaaS. Eric rejects this premise, explaining why keeping the variable CPM model alongside recurring subscriptions provides valuable upside.0:48–6:10 · Guest teaching 3/10 Introducing Guest Eric Matlick of Bombora Nathan probes into the distinction between Bombora's pure SaaS subscription revenue versus CPM-based variable revenue. Eric clarifies the 60/40 revenue split and explains how the SaaS product feeds into the variable data business.6:14–9:12 · Guest teaching 4/10 Commercial Break: ProsperWorks CRM Sponsorship Following the mid-roll ad read, Nathan draws parallels between Bombora and broader ad tech margin models like MediaOcean. Eric pushes back gently by distinguishing Bombora as an agnostic data cooperative across sales/marketing stacks rather than a point solution.9:12–14:14 · Guest teaching 2/10 Bombora's Spin-Out Strategy, Funding, and Madison Logic Exit Nathan relentlessly digs into the corporate mechanics of spinning out Bombora from Madison Logic, cap table structure, and the exit valuation of the original entity. Eric provides strategic details on cap tables but deflects on exact acquisition numbers.14:15–17:49 · Guest teaching 3/10 Bombora's Growth Metrics, Scale, and SaaS-CPM Balance Nathan asks whether Bombora will eventually transition completely to SaaS. Eric rejects this premise, explaining why keeping the variable CPM model alongside recurring subscriptions provides valuable upside.0:48–6:10 · Guest disagreement 1/10 Introducing Guest Eric Matlick of Bombora Nathan probes into the distinction between Bombora's pure SaaS subscription revenue versus CPM-based variable revenue. Eric clarifies the 60/40 revenue split and explains how the SaaS product feeds into the variable data business.6:14–9:12 · Guest disagreement 2/10 Commercial Break: ProsperWorks CRM Sponsorship Following the mid-roll ad read, Nathan draws parallels between Bombora and broader ad tech margin models like MediaOcean. Eric pushes back gently by distinguishing Bombora as an agnostic data cooperative across sales/marketing stacks rather than a point solution.9:12–14:14 · Guest disagreement 2/10 Bombora's Spin-Out Strategy, Funding, and Madison Logic Exit Nathan relentlessly digs into the corporate mechanics of spinning out Bombora from Madison Logic, cap table structure, and the exit valuation of the original entity. Eric provides strategic details on cap tables but deflects on exact acquisition numbers.14:15–17:49 · Guest disagreement 2/10 Bombora's Growth Metrics, Scale, and SaaS-CPM Balance Nathan asks whether Bombora will eventually transition completely to SaaS. Eric rejects this premise, explaining why keeping the variable CPM model alongside recurring subscriptions provides valuable upside.0:48–6:10 · Nathan pushing back 4/10 Introducing Guest Eric Matlick of Bombora Nathan probes into the distinction between Bombora's pure SaaS subscription revenue versus CPM-based variable revenue. Eric clarifies the 60/40 revenue split and explains how the SaaS product feeds into the variable data business.6:14–9:12 · Nathan pushing back 5/10 Commercial Break: ProsperWorks CRM Sponsorship Following the mid-roll ad read, Nathan draws parallels between Bombora and broader ad tech margin models like MediaOcean. Eric pushes back gently by distinguishing Bombora as an agnostic data cooperative across sales/marketing stacks rather than a point solution.9:12–14:14 · Nathan pushing back 6/10 Bombora's Spin-Out Strategy, Funding, and Madison Logic Exit Nathan relentlessly digs into the corporate mechanics of spinning out Bombora from Madison Logic, cap table structure, and the exit valuation of the original entity. Eric provides strategic details on cap tables but deflects on exact acquisition numbers.14:15–17:49 · Nathan pushing back 4/10 Bombora's Growth Metrics, Scale, and SaaS-CPM Balance Nathan asks whether Bombora will eventually transition completely to SaaS. Eric rejects this premise, explaining why keeping the variable CPM model alongside recurring subscriptions provides valuable upside.

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

0:00 · Nathan 54.4% · guest 45.6%0:00 · Nathan 54.4% · guest 45.6%3:00 · Nathan 11.1% · guest 88.9%3:00 · Nathan 11.1% · guest 88.9%6:00 · Nathan 60.2% · guest 39.8%6:00 · Nathan 60.2% · guest 39.8%9:00 · Nathan 26.3% · guest 73.7%9:00 · Nathan 26.3% · guest 73.7%12:00 · Nathan 25.5% · guest 74.5%12:00 · Nathan 25.5% · guest 74.5%15:00 · Nathan 42.6% · guest 57.4%15:00 · Nathan 42.6% · guest 57.4%18:00 · Nathan 96.8% · guest 3.2%18:00 · Nathan 96.8% · guest 3.2%
Sharpest disagreement ▶ 15:47 Rebuffing the all-SaaS strategic direction

Eric firmly rejects Nathan's suggestion to eliminate variable CPM revenue in favor of pure SaaS, asserting that variable revenue serves as the essential upside icing on the cake.

 Hardest push from Nathan ▶ 13:34 Pressing on rumored acquisition price

Nathan refuses to accept Eric's non-disclosure deflection regarding Madison Logic's sale, pushing him to confirm speculative reports and prompting viewers to read his body language.

 Biggest teaching moment ▶ 7:57 Differentiating Bombora from ad tech point solutions

Eric educates Nathan on why Bombora operates across CRM and marketing automation stacks like Marketo and Eloqua, correcting Nathan's narrow comparison to ad tech platforms taking cuts of media spend.

 Nathan holds their own ▶ 7:37 Benchmarking platform margins against MediaOcean

Nathan demonstrates industry domain knowledge by contrasting Bombora's data aggregation approach with traditional ad tech fee structures and MediaOcean's low-take rate model.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Guest Eric Matlick of Bombora 5314 Nathan probes into the distinction between Bombora's pure SaaS subscription revenue versus CPM-based variable revenue. Eric clarifies the 60/40 revenue split and explains how the SaaS product feeds into the variable data business.
Commercial Break: ProsperWorks CRM Sponsorship 6425 Following the mid-roll ad read, Nathan draws parallels between Bombora and broader ad tech margin models like MediaOcean. Eric pushes back gently by distinguishing Bombora as an agnostic data cooperative across sales/marketing stacks rather than a point solution.
Bombora's Spin-Out Strategy, Funding, and Madison Logic Exit 6226 Nathan relentlessly digs into the corporate mechanics of spinning out Bombora from Madison Logic, cap table structure, and the exit valuation of the original entity. Eric provides strategic details on cap tables but deflects on exact acquisition numbers.
Bombora's Growth Metrics, Scale, and SaaS-CPM Balance 5324 Nathan asks whether Bombora will eventually transition completely to SaaS. Eric rejects this premise, explaining why keeping the variable CPM model alongside recurring subscriptions provides valuable upside.

Statements from this episode (11)

Assertion Contradicted
Industry Brains was first to market with B2B pay-per-click before Google
“Progression has gone from pay-per-click back the day before Google was auctioning clicks. We were the first to market there with a B to B product called industry brands.”
Eric Matlick Jan 5, 2018 ▶ 1:34
Assertion Not checkable as stated
Bombora counts over 55 channel partners selling its analytics SaaS product
“We have over 55 channel partners who sell our analytics SaaS product, if you will.”
Eric Matlick Jan 5, 2018 ▶ 4:00
Assertion Not checkable as stated
Bombora's SaaS analytics product accounts for 40% of total revenue
“So the SAS analytics piece of our business is growing a little bit faster and it's now about 40% of our revenue and it'll, it'll continue to grow.”
Eric Matlick Jan 5, 2018 ▶ 5:07
Assertion Not checkable as stated
Bombora has 4,000 total data customers via direct and channel sales
“So to get into some numbers for you, we actually have almost 4000 or approximately 4000 customers of our data. Many of which are not buying from us directly, they're buying through our distribution channels.”
Eric Matlick Jan 5, 2018 ▶ 5:34
Assertion Not checkable as stated
Bombora has hundreds of direct SaaS platform customers
“The SaaS platform is probably in the hundreds right now, and we have an account-based strategy, if you will where we're going after the largest companies first, so we like a key account list, and so we're going after, you know, the very largest B to B companie…”
Eric Matlick Jan 5, 2018 ▶ 5:55
Disclosure
Eric Matlick funded 70% to 80% of Bombora's seven-figure initial round
“Probably about 70, 80% of it is mine. You know, I'm well, well over seven figures myself”
Eric Matlick Jan 5, 2018 ▶ 9:44
Assertion Not checkable as stated
Madison Logic had an all-common cap table with zero VC backing
“The cap table of the original company was very similar to this one. It was all individuals. I didn't, right. It was mainly me and a bunch of angels. We didn't have a complicated cap structure with preferred shares, all common shares. There was no VC or, you kn…”
Eric Matlick Jan 5, 2018 ▶ 12:19
Assertion Not checkable as stated
Matlick: Bombora has doubled yearly and reached 60 employees
“So we've done, we've doubled every year now. So we're in our third, third year. We're now up to 60 employees.”
Eric Matlick Jan 5, 2018 ▶ 14:21
Assertion Not checkable as stated
Matlick: Bombora is profitable and cash-flow positive
“We were basically cashflow neutral last year and this year. So But we're profitable and cashflow positive.”
Eric Matlick Jan 5, 2018 ▶ 15:05
Assertion Not checkable as stated
Bombora surpassed $10 million in revenue last year and doubled again
“I will say that last year we did well over ten million and then I told you that we doubled again.”
Eric Matlick Jan 5, 2018 ▶ 15:19
Insight
Variable CPM revenue provides upside on top of a predictable SaaS baseline
“So we love SAS revenue and we're, we want it to be a bigger piece of the pie. But I, you know, I like variable revenue, you know, variable revenue allows you to have some upside. I'd like more consistency in the business. I'd like to be able to predict and pro…”
Eric Matlick Jan 5, 2018 ▶ 15:48
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