The Exchanges

Q Okay. And what, maybe the right question is to ask is on average per door, what are you billing on a monthly basis? Is it, you know, like 10 bucks a door, a dollar a door, you know, a thousand a door, or how do you think about that? Yeah,

A So by door, ultimately, it ranges from anywhere from five dollar plans all the way up to a 29 dollar plan, and really the way that it works is it's very much, very similar to kind of a warranty basis, and so we have a coverage-based system, so we'll have certain pest types. A lot of those pest types are going to be the most intrusive pest types, so like your cockroaches, your bedbugs, you know, mice, fleas, ticks, but ultimately, a lot of that is what When it enters the space, it's what decreases kind of that resident experience. So for us to be able to have quick solution to the resident, and then quick delivery of service, ultimately that helps improve the resident's quality of living during their residency. And so it, again, ranging from five to 29, kind of embedded into the lease if it's a e-based program versus a landlord-based program.

AI assessment note: “ranges from anywhere from five dollar plans all the way up to a 29 dollar plan”

Q Now, one of the questions I want to ask you, you didn't raise from like someone that everyone knows, which is not a bad thing. Sometimes niche and niche investors can be very value add. I believe you raised from integrity growth partners, uh, based out of LA, right? Why'd you go with them? Have they been a good partner? Was it all primary? Was there a secondary component here?

A Yes. Uh, most of it was, was primary. Uh, I think only did a, like a very small portion of secondary, but, uh, most of it, I'm going to say 25 was primary. And so, we run a, a pretty tight funnel when it comes to, you know, our, our, when we're starting to actually even consider raising. One of the things about IGP is that they made the effort really early on, and they were one of the front layers from the get-go, just because the biggest decision makers for us is who we partner with. Partner with not necessarily just the money that comes through. And so, uh, we, we kind of ultimately believe that not all money is created equal. And so it's really important for us to make sure that, that the, the people that partner with is that are, that are essentially cutting that check are the right ones to be around the table and discussing issues where, you know, in good times, in bad times, are they going to be helpful in, in difficult Are they going to be accelerators in good times? And so IGP was absolutely a perfect match for us in that regard.

AI assessment note: “most of it was, was primary. Uh, I think only did a, like a very small portion”

Q that, all of their funds summed up to like two hundred million and they took very concentrated bets. These weren't like 30, fifteen million dollar checks. It was like Six checks for, for way more. I mean, they only have three, six, nine, including you, you know, on their website, which tells me they get really active when they invest in a company. How have they done that with you?

A They do. And I'd say that kind of scares a lot of founders too. Um, but it actually was, was something that we, we were also looking for, uh, what is that our partners can also contribute to what we lack. Actually the IGP guys, um, you know, the ones that we were most active, With is, is Doyle, Grant, and Jake. They're, they're the three primaries that, that are working with us, but they really dove into the, the numbers, the metrics, um, you know, what were contributors to it and what were the effects afterwards. And so, and they still continue to do that today and, and they've been fantastic partners because they actually come from a PE path.

AI assessment note: “they really dove into the, the numbers, the metrics”

Q So it's made easy. Is it number of individual apartment complexes you're installed in? Is it number of pictures that residents are taking on a monthly basis? Like what's the growth metric you care about?

A So we're entering a growth phase ultimately. We just Our series a, um, just last year. And our growth is really by a couple of different things. We track, uh, mainly our door counts. Our door counts are, are really more based off of our logo counts. Those are kind of portfolio. So each logo then translates to X number of doors within their portfolio, both first party and third party property management companies. Uh, and so we track a lot of our growth based off of The app, you know, our GRR and our retention rates, you know, to make sure we're actually driving the impact to those end users, both resident, property manager. So those are a lot of our growth mechanisms, if I could even just call out a couple of them.

AI assessment note: “We track, uh, mainly our door counts. Our door counts are, are really more”

Q What's the go-to-market motion here? Does the property manager, when someone new leases From their property, Do they send them a link to say, hey, download the PestShare app. If you have ants on your kitchen counter, take a picture. We'll get it solved in under 24 hours. Or how do people get the thing installed to take pictures of the ants in their garden?

A Yeah, that's a great question. Really, the, our effort is to make it as seamless and as easy as possible. So really, as soon as we onboard a new client, our integration within their property management software systems, where they're actually, you know, managing their doors, managing their resident residence experience, We want to integrate ultimately in, in with that. And that, that creates a number of, uh, you know, benefits. There are value drops where the property manager as a client ultimately has the visibility to see, okay, what are residents experiencing, you know, pest control wise or pest station wise, you know, what are, what are the, the request rates, you know, what, what types of pests are we dealing with? So there's reporting mechanisms that are kind of put in there. And then on a resident facing side, it's as simple as a few clicks of a button and ultimately Ultimately they are, are integrated utilizing through the property management system working throughout our triage and, uh, kind of agentic workflows to be able to help them not only identify the, the pets that is, that they're having issues with, because a lot of times the lay person doesn't know, am I dealing with a bed bug or a carpet beetle or, or whatnot? So we have within our pest IQ system, ultimately the, the ability for us to, to triage that Be able to understand exactly what's happening. And then w…

AI assessment note: “our integration within their property management software systems, where they're actually, you know, managing”

Q 22 to five million in 20, 24 to 10,000,020, 25, targeting twenty million, you know, ish at the end of this year, 2000 logos, 300,000 door install base. You did a twenty million series a last year in 20, 25. Everyone is wondering what the funding market is like right now, down from Are you comfortable sharing some of the valuation range you were in when you closed that round?

A When we went into valuations, uh, raising it in our series A, we have, uh, kind of this lag of revenue that comes through at the onset of an onboarding. And so as we embed, let's say our terms or the product into the lease, what we ultimately have is we have a small, let's say I call it white space between, you know, the, the onboarding and then full activation of every door within that Platform. Because it's embedded into the lease, we have to wait for, uh, renewals and pieces to come through and cycle through. So it takes us a bit of time to be able to get full implementation. And so what we have is we have a top line contracted revenue number, and then we have a live ARR. And that ultimately converted, let's say from this kind of cloud of car all the way down to what essentially lands as live ARR. So within that white Our customer success, you know, uh, department ultimately is very responsible for translating and converting that car to live ARR within, you know, that reasonable times, um, you know, timeframe. And a lot of that is determined by, you know, the, the leasing cycle. So, and not every property management company has the same leasing schedule. So it's very customer dependent on, um, What the, how those leases renew and, and at what point in time they renew during the year.

AI assessment note: “When we went into valuations, uh, raising it in our series A, we have”

Q founders just don't have, either they don't have the courage to ask for it because they think it's going to kill their round, or they just don't know how to ask for it. But I think once a founder is taken care of financially, personally, you're able to take much larger risks in the business and you grow faster. Just, I guess, comment on that. How'd you do it? Yeah.

A Actually, I would agree with you on the risk side of it too, and, and there's a, a certain comfort level, and I, and I think that this is probably where the, the bridge between venture and, and ITP is kind of more of that PE side is, is, you know, we actually feel like that, and this stems all the way across the organization, and we believe that if our, our employees, you know, ourselves included, are comfortable, and we don't have to worry about all those other things, you know, where's, You know, we're asking to confront where's the next, well, how am I going to pay for health insurance, et cetera. Then we're going to be much more dedicated and, and able to actually focus and concentrate, concentrate on the business as opposed to worrying about all these other things. And so being able to kind of, uh, work into that with them. And I would say I achieve.

AI assessment note: “Actually, I would agree with you on the risk side of it too”