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Oct 12, 2017 · 26m · top-founders

810: SaaS: With $70m Raised, White Board Videos Secret to VidYard 2x YoY Growth

Michael Litt · 16m 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

Vidyard co-founder and CEO Michael Litt discusses scaling the enterprise video platform to 2x year-over-year growth on Nathan Latka's podcast. He breaks down the company's capital discipline, outbound whiteboard video sales tactics, streaming unit economics, and the rapid rise of ViewedIt.

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 32.9% of the talking time here. How this is scored →

Nathan as informed peer 5.6 Guest teaching 3.6 Guest disagreement 0.6 Nathan pushing back 2.0
05100:0010:0020:000:54–4:17 · Nathan as informed peer 5/10 Exclusive Access to the GetLatka SaaS Database Latka introduces Litt and references their previous conversation metrics, demonstrating familiarity with Vidyard's baseline. Litt introduces their new free Chrome extension tool, Viewed.it, and its user adoption numbers.4:19–7:01 · Nathan as informed peer 5/10 Capital Efficiency and the House of No Philosophy Latka probes into burn rate management at scale. Litt explains their Canadian Forex hedge and how their CFO operates as the 'House of No' to enforce disciplined capital allocation.7:02–11:09 · Nathan as informed peer 6/10 Unit Economics, Customer Expansion, and Retention Targets Latka drills into ARPU expansion, upsell rates, and churn metrics. Litt distinguishes between net new revenue targets (30%) and best-in-class gross (95%) and net retention (120%).11:11–14:22 · Nathan as informed peer 7/10 Scaling ARR and Managing Video Streaming Margins Latka challenges Litt on how Vidyard maintains high 85-90% gross margins despite heavy video bandwidth costs. Litt educates Latka on their latency-based CDN throttling strategy modeled after Netflix.14:22–19:40 · Nathan as informed peer 6/10 Whiteboard Sales Video Hacks and Propensity Triggers Latka asks for unorthodox customer acquisition tactics. Litt details using personalized whiteboard video thumbnails for an 8x click-through rate increase and scraping web data to track new CMO hires.19:40–22:13 · Nathan as informed peer 7/10 Fully Loaded Payback Metrics and Scaling Flywheels Latka investigates Vidyard's payback period and verifies whether overhead like office rent is included. Latka quickly runs the math on the fly to estimate Vidyard's fully loaded CAC between $35k and $50k.22:13–26:14 · Nathan as informed peer 3/10 Sponsor Message: HostGator Website Builder After an ad read, Latka takes Litt through the rapid-fire Famous Five questions, concluding with a lighthearted story about Litt marrying Vidyard's first customer.0:54–4:17 · Guest teaching 2/10 Exclusive Access to the GetLatka SaaS Database Latka introduces Litt and references their previous conversation metrics, demonstrating familiarity with Vidyard's baseline. Litt introduces their new free Chrome extension tool, Viewed.it, and its user adoption numbers.4:19–7:01 · Guest teaching 4/10 Capital Efficiency and the House of No Philosophy Latka probes into burn rate management at scale. Litt explains their Canadian Forex hedge and how their CFO operates as the 'House of No' to enforce disciplined capital allocation.7:02–11:09 · Guest teaching 4/10 Unit Economics, Customer Expansion, and Retention Targets Latka drills into ARPU expansion, upsell rates, and churn metrics. Litt distinguishes between net new revenue targets (30%) and best-in-class gross (95%) and net retention (120%).11:11–14:22 · Guest teaching 5/10 Scaling ARR and Managing Video Streaming Margins Latka challenges Litt on how Vidyard maintains high 85-90% gross margins despite heavy video bandwidth costs. Litt educates Latka on their latency-based CDN throttling strategy modeled after Netflix.14:22–19:40 · Guest teaching 5/10 Whiteboard Sales Video Hacks and Propensity Triggers Latka asks for unorthodox customer acquisition tactics. Litt details using personalized whiteboard video thumbnails for an 8x click-through rate increase and scraping web data to track new CMO hires.19:40–22:13 · Guest teaching 4/10 Fully Loaded Payback Metrics and Scaling Flywheels Latka investigates Vidyard's payback period and verifies whether overhead like office rent is included. Latka quickly runs the math on the fly to estimate Vidyard's fully loaded CAC between $35k and $50k.22:13–26:14 · Guest teaching 1/10 Sponsor Message: HostGator Website Builder After an ad read, Latka takes Litt through the rapid-fire Famous Five questions, concluding with a lighthearted story about Litt marrying Vidyard's first customer.0:54–4:17 · Guest disagreement 0/10 Exclusive Access to the GetLatka SaaS Database Latka introduces Litt and references their previous conversation metrics, demonstrating familiarity with Vidyard's baseline. Litt introduces their new free Chrome extension tool, Viewed.it, and its user adoption numbers.4:19–7:01 · Guest disagreement 0/10 Capital Efficiency and the House of No Philosophy Latka probes into burn rate management at scale. Litt explains their Canadian Forex hedge and how their CFO operates as the 'House of No' to enforce disciplined capital allocation.7:02–11:09 · Guest disagreement 1/10 Unit Economics, Customer Expansion, and Retention Targets Latka drills into ARPU expansion, upsell rates, and churn metrics. Litt distinguishes between net new revenue targets (30%) and best-in-class gross (95%) and net retention (120%).11:11–14:22 · Guest disagreement 1/10 Scaling ARR and Managing Video Streaming Margins Latka challenges Litt on how Vidyard maintains high 85-90% gross margins despite heavy video bandwidth costs. Litt educates Latka on their latency-based CDN throttling strategy modeled after Netflix.14:22–19:40 · Guest disagreement 1/10 Whiteboard Sales Video Hacks and Propensity Triggers Latka asks for unorthodox customer acquisition tactics. Litt details using personalized whiteboard video thumbnails for an 8x click-through rate increase and scraping web data to track new CMO hires.19:40–22:13 · Guest disagreement 1/10 Fully Loaded Payback Metrics and Scaling Flywheels Latka investigates Vidyard's payback period and verifies whether overhead like office rent is included. Latka quickly runs the math on the fly to estimate Vidyard's fully loaded CAC between $35k and $50k.22:13–26:14 · Guest disagreement 0/10 Sponsor Message: HostGator Website Builder After an ad read, Latka takes Litt through the rapid-fire Famous Five questions, concluding with a lighthearted story about Litt marrying Vidyard's first customer.0:54–4:17 · Nathan pushing back 1/10 Exclusive Access to the GetLatka SaaS Database Latka introduces Litt and references their previous conversation metrics, demonstrating familiarity with Vidyard's baseline. Litt introduces their new free Chrome extension tool, Viewed.it, and its user adoption numbers.4:19–7:01 · Nathan pushing back 2/10 Capital Efficiency and the House of No Philosophy Latka probes into burn rate management at scale. Litt explains their Canadian Forex hedge and how their CFO operates as the 'House of No' to enforce disciplined capital allocation.7:02–11:09 · Nathan pushing back 2/10 Unit Economics, Customer Expansion, and Retention Targets Latka drills into ARPU expansion, upsell rates, and churn metrics. Litt distinguishes between net new revenue targets (30%) and best-in-class gross (95%) and net retention (120%).11:11–14:22 · Nathan pushing back 3/10 Scaling ARR and Managing Video Streaming Margins Latka challenges Litt on how Vidyard maintains high 85-90% gross margins despite heavy video bandwidth costs. Litt educates Latka on their latency-based CDN throttling strategy modeled after Netflix.14:22–19:40 · Nathan pushing back 2/10 Whiteboard Sales Video Hacks and Propensity Triggers Latka asks for unorthodox customer acquisition tactics. Litt details using personalized whiteboard video thumbnails for an 8x click-through rate increase and scraping web data to track new CMO hires.19:40–22:13 · Nathan pushing back 3/10 Fully Loaded Payback Metrics and Scaling Flywheels Latka investigates Vidyard's payback period and verifies whether overhead like office rent is included. Latka quickly runs the math on the fly to estimate Vidyard's fully loaded CAC between $35k and $50k.22:13–26:14 · Nathan pushing back 1/10 Sponsor Message: HostGator Website Builder After an ad read, Latka takes Litt through the rapid-fire Famous Five questions, concluding with a lighthearted story about Litt marrying Vidyard's first customer.

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

0:00 · Nathan 82.6% · guest 17.4%0:00 · Nathan 82.6% · guest 17.4%3:00 · Nathan 30.7% · guest 69.3%3:00 · Nathan 30.7% · guest 69.3%6:00 · Nathan 11.6% · guest 88.4%6:00 · Nathan 11.6% · guest 88.4%9:00 · Nathan 41.1% · guest 58.9%9:00 · Nathan 41.1% · guest 58.9%12:00 · Nathan 16.6% · guest 83.4%12:00 · Nathan 16.6% · guest 83.4%15:00 · Nathan 4.8% · guest 95.2%15:00 · Nathan 4.8% · guest 95.2%18:00 · Nathan 22.2% · guest 77.8%18:00 · Nathan 22.2% · guest 77.8%21:00 · Nathan 46.4% · guest 53.6%21:00 · Nathan 46.4% · guest 53.6%24:00 · Nathan 42.1% · guest 57.9%24:00 · Nathan 42.1% · guest 57.9%
Sharpest disagreement ▶ 11:31 Deflection of exact ARR disclosure

Litt gently pushes back against Latka's revenue estimates, stating there is not much strategic value in disclosing specific ARR figures publicly.

 Hardest push from Nathan ▶ 12:49 Challenging streaming margin assumptions

Latka presses Litt on how Vidyard could possibly maintain 85-90% SaaS gross margins given the inherently expensive nature of video streaming infrastructure.

 Biggest teaching moment ▶ 13:02 Explaining dynamic CDN latency switching

Litt breaks down Vidyard's architecture of streaming 50M+ videos daily using multi-CDN latency routing and value-add software layers to protect gross margins.

 Nathan holds their own ▶ 21:11 Instant mental math on fully loaded CAC

Latka instantly derives Vidyard's blended CAC range ($35k-$50k) in real time by connecting the 18-month fully loaded payback period to the $30k initial ACV.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Exclusive Access to the GetLatka SaaS Database 5201 Latka introduces Litt and references their previous conversation metrics, demonstrating familiarity with Vidyard's baseline. Litt introduces their new free Chrome extension tool, Viewed.it, and its user adoption numbers.
Capital Efficiency and the House of No Philosophy 5402 Latka probes into burn rate management at scale. Litt explains their Canadian Forex hedge and how their CFO operates as the 'House of No' to enforce disciplined capital allocation.
Unit Economics, Customer Expansion, and Retention Targets 6412 Latka drills into ARPU expansion, upsell rates, and churn metrics. Litt distinguishes between net new revenue targets (30%) and best-in-class gross (95%) and net retention (120%).
Scaling ARR and Managing Video Streaming Margins 7513 Latka challenges Litt on how Vidyard maintains high 85-90% gross margins despite heavy video bandwidth costs. Litt educates Latka on their latency-based CDN throttling strategy modeled after Netflix.
Whiteboard Sales Video Hacks and Propensity Triggers 6512 Latka asks for unorthodox customer acquisition tactics. Litt details using personalized whiteboard video thumbnails for an 8x click-through rate increase and scraping web data to track new CMO hires.
Fully Loaded Payback Metrics and Scaling Flywheels 7413 Latka investigates Vidyard's payback period and verifies whether overhead like office rent is included. Latka quickly runs the math on the fly to estimate Vidyard's fully loaded CAC between $35k and $50k.
Sponsor Message: HostGator Website Builder 3101 After an ad read, Latka takes Litt through the rapid-fire Famous Five questions, concluding with a lighthearted story about Litt marrying Vidyard's first customer.

Statements from this episode (11)

Assertion Not checkable as stated
Litt: Vidyard is approaching 250 employees
“Yeah, so we're about double in size. We're approaching 250 employees now.”
Michael Litt Oct 12, 2017 ▶ 2:27
Assertion Supported
Litt: Vidyard's ViewedIt tool reached 100,000 signups
“And we actually just announced that we had a 100,000 or a 100,000 users sign up a couple of weeks ago. And that was just since October.”
Michael Litt Oct 12, 2017 ▶ 3:11
Disclosure
Litt: Vidyard delayed spending Series C for 18 months using FX buffer
“One of the unique opportunities of being a Canadian company is that we sell in, in primarily USD and spend in Canadian so there's a bit of a hedge on Forex, which allows our money to go a lot further than it would if we were elsewhere in the world, so we actua…”
Michael Litt Oct 12, 2017 ▶ 4:23
Insight
Litt: Scaling CFOs must act as a 'house of no' against executives
“Your CFO has to become what we call the house of no. And so you get to a phase where as you bring in experienced executives and individuals who've been a part of bigger businesses, they want to spend a lot of money.”
Michael Litt Oct 12, 2017 ▶ 5:27
Assertion Not checkable as stated
Litt: Vidyard's net revenue retention is above 120%
“Our internal target's 95 of which I'm compensated against. And then best in class net retention tends to be about the 120% range. And of course, based on that gross retention number and our 30% target, which we hit, we're above that as well.”
Michael Litt Oct 12, 2017 ▶ 10:23
Assertion Not checkable as stated
Litt: Vidyard streams over 50 million videos daily
“We're streaming in excess of fifty million videos a day and we subscribe to the Netflix model of throttling our CDN and serving, or service providers based on the latency of loading an asset.”
Michael Litt Oct 12, 2017 ▶ 13:09
Insight
Litt: Video SaaS must offer more than hosting to compete with YouTube
“If you're just hosting video for a company you're competing against status quo, which is YouTube or Vimeo, which is free and monetized based on ads. And so there needs to be a whole bunch more in the package that justifies value beyond just video hosting anywa…”
Michael Litt Oct 12, 2017 ▶ 13:47
Assertion Not checkable as stated
Litt: Vidyard saw an 8x click-through increase from embedded sales videos
“We started to see an eight X increase in, in click through of emails that actually had a video embedded in them.”
Michael Litt Oct 12, 2017 ▶ 15:43
Disclosure
Litt: Vidyard built ViewedIt to streamline reps' whiteboard video prospecting
“The reality is we built viewed it based on this use case. To make it easier for our reps to do prospecting.”
Michael Litt Oct 12, 2017 ▶ 15:54
Insight
Litt: The shelf life of a CMO is typically 18 to 24 months
“The shelf life of a CMO is generally 18 to 24 months.”
Michael Litt Oct 12, 2017 ▶ 19:09
Assertion Not checkable as stated
Litt: Vidyard's fully loaded CAC payback period is around 18 months
“So our payback period now is, is in the 18 month range. But that is fully loaded.”
Michael Litt Oct 12, 2017 ▶ 20:07
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