The Exchanges

Q Before we wrap up with the famous five, let's wrap up some of these unit economics. What are you paying right now to acquire new customers?

A Yeah, we have some pretty fantastic numbers, um, in that regard. So, um, we're paying about 6000 and our last quarterly update, we, we paid 6100 dollars to acquire a customer. Um, and just to get to kind of the next question, the lifetime value of our customers is north of 50,000 dollars when we talk about our agency partners. So pretty fantastic, you know, eight times CAC to LTV ratios. And, you know, we're really excited about that. We've been doing that since we, since we started, it allows us a lot of room to continue to grow in the future, um, and really acquire, hopefully acquire customers at an even faster rate than we, than we have been.

AI assessment note: “we paid 6100 dollars to acquire a customer”

Q One of the things that happened about having a market cap that's, you know, in the Somebody could, if they liked your space and liked your product, really just buy into the company and start actually getting control and making changes. Have you had to deal with anything like that? Or have you thought about finding a private equity, you know, partner and taking it private?

A No, we have a pretty broad, uh, we have a pretty broad group of investors right now, um, and so I think, uh, you know, just looking out there at what's public, there's no, there's not many investors, if anybody, um, I may be the single largest investor at this point, um, within the company, so nobody owns more than, you know, six, eight, 10% of the, of the company, um, no individual investor, and so, you know, we're not, Uh, necessarily worried about that at all. We certainly get, um, all sorts of interest in the company because of the performance of the company. We're doing pretty darn well out there and, and, uh, a pretty interesting space. And so, um, we definitely get a lot of, um, of interest, but it's, it's not, uh, something in the sense of, uh, that we're worried about it from a hostile perspective.

AI assessment note: “No, we have a pretty broad, uh, we have a pretty broad group of investors”

Q the same as you. I mean, if one of these, if a company like, I'm going to make this up, if a company like Vista Equity Partners, which just bought Marketo, right, said, you know what, we want to go after this company. Couldn't they just start buying the stock at the price that it's at now to get a large chunk of it and then do changes they wanted?

A Um, I think that that's possible. Um, I think it's highly unlikely for a lot of reasons. For, for one, um, when you're dealing with companies our size, it's very difficult for you to purchase that many shares and, and have it not move the needle. Um, and so it becomes potentially prohibitively expensive. But what I'd really like to believe is that any company, um, you know, a company's not as, uh, is, is really as good as its people. And so. So, um, I don't see a company like Vista or somebody like that coming in and really trying to do something like that, um, without the buy-in of the management and the company itself and the team. Um, so it's just, it, it becomes impractical, I think, for that reason. Um, certainly not impossible, uh, but, uh, it's, it's definitely not something that we worry about on a daily basis.

AI assessment note: “I think that that's possible. Um, I think it's highly unlikely for a lot”

Q Um, what does churn, what does churn look like today?

A Yeah, sure. On a, um, on a, there's a couple different ways, as you, as you well know, to think about churn. On a logo basis, we're doing, um, we're well south of three percent, um, churn on a monthly, uh, a logo basis. But in our business, we only lose the agencies, um, if an agency really kind of takes off with us and builds their business around marketing automation and is healthy They, they just never leave, um, frankly. And so we only ever lose the agencies that are much, much smaller. So on a, um, net revenue attrition basis, even though we're a pretty new company, um, we're, we're approaching, um, uh, being, uh, uh, how do you say this? Net, uh, net, negative net revenue attrition, um, or positive, uh, attrition.

AI assessment note: “On a logo basis, we're doing, um, we're well south of three percent”

Q Are you bootstrapped today? No, nothing, no, nothing raised?

A We, we bootstrapped the company up until that point. That's exactly right, and, uh, and then we were acquired really eight months afterwards. It was Kind of the time where we had to take on VC and another company came along that was an email service provider that seemed to marry up nicely with us from a technology perspective. We ended up becoming part of that company, but very quickly outgrowing it. And so the company, um, uh, and so we ended up selling the company that acquired us and sharp as a sharp spring, the core business that we are today out, out, uh, outgrew it. So So we're a hundred percent marketing automation now, but that wasn't the case for the last, uh, call it two years, um, where we had a division that did what's called email relay, uh, an email relay service, which is just kind of core email delivery. That's correct. That company was called SMTP.

AI assessment note: “We, we bootstrapped the company up until that point. That's exactly right”

Q the app is so easy to use. Get started today at getsigneasy.com forward slash podcast. There are burdens to being public. Like there are real administrative costs, right? That actually hit your bottom line to being public with regard to reporting and stuff. I mean, have you ever thought about the savings and the additional cash flow you could spit off by finding a PE partner and taking it private?

A Uh, yeah, absolutely. It's something that you think about. Those costs are absolutely real. There's a lot of, um, discussion with investors. Oftentimes investors don't understand when, when we get to the point where we're talking about our CAC and LTV ratios and things that I share with you. Um, you know, there's strong arguments for investing, but then you've got longer payback periods than, than maybe an investor is not very SAS, um, oriented would understand. And so, In addition to just the raw dollars and, and overhead, there's, there's other, um, constraints or potential constraints if you're not careful about managing those to being public. So for a lot of those reasons, it's, um, you know, there's, there's, uh, certainly something that you think about, but honestly, at this point, we have a fantastic group of, of investors in the company. Um, you mentioned Morgan Stanley. There's, there's just a bunch of them, uh, out there that I could name.

AI assessment note: “yeah, absolutely. It's something that you think about. Those costs are absolutely real.”