Disclosure
M-Files allows reseller partners to independently set end-customer pricing
“We don't we don't enforce pricing to the customers. So our reseller partners would be free to price lower if they want to.”
Disclosure
M-Files direct sales yields to reseller partners on shared prospects
“We try to take upon the first approach. So if we are actually working on the same prospects, we would, Let's say, give way to the partner and rather support them in winning the deal.”
Insight
M-Files minimizes channel conflict by separating direct and partner deal sizes
“Yeah. Generally. So that's probably also why we don't have that much channel conflict because we don't necessarily compete for the same kind of deals.”
Assertion Not checkable as stated
M-Files recently crossed $90 million in annual recurring revenue
“We're just above ninety million in, in ARR.”
Disclosure
M-Files active team declined secondary liquidity, leaving it for former employees
“None of us who stayed with the business were that interested in selling any, but yeah, it's a different thing if you've already left the business early on, like with our longer history that some people had left.”
Insight
Nivala warns against raising capital at peak market multiples
“It's not necessarily an easy situation for a company to let's say succeed, to raise money at the peak of the valuations and then have to deal with the potential downsides of that. If the, if, and when sometimes the multiples also.”
Assertion Not checkable as stated
M-Files averages $50,000 ARR within its ideal customer segment
“I'd say in the ideal customer segment, it's probably on average about 50,000 in ARR. So on annual basis, we have a pretty broad range of smaller and larger, larger customers, but that's, that would be the average.”
Assertion Not checkable as stated
M-Files contract sizes range from $5,000 to over $1 million annually
“And in that kind of partner business segment, the typical annual prices would be a few, few thousand dollars, let's say five K. And then we go up to our enterprise customers who pay well over a million per year.”
Disclosure
M-Files reseller partners retain approximately 30% of customer contract value
“I'm not going to disclose the specific percentages, but something like the 30% would be kept by the partner.”
Assertion Not checkable as stated
M-Files currently serves over 5,000 total customers
“Over 5000 customers in total.”
Assertion Not checkable as stated
Partners drive 80% of M-Files customers but only one-third of revenue
“It's about well, let's say, okay, revenue wise, it's about one third but in terms of number of customers, it's much higher at least 80% probably through, through partners.”
Disclosure
M-Files sells exclusively through partners outside its core Western markets
“We consider North America, Western Europe, and Nordics our Primary sales regions and then rest of the world through partners only.”
Assertion Not checkable as stated
M-Files maintains 25% to 30% growth without burning cash
“So it's been more of this, you know, 25, 30% growth in the past years. But you know, sustaining that and doing it in an efficient manner, not, not, not really burning cash.”
Assertion Supported
M-Files bootstrapped to $9 million in revenue before 2013 Series A
“We got all the way to nine million in revenue before we raised our a round in 2013.”
Disclosure
Nivala details M-Files funding history through its $80 million Series C
“That was our B round. Again in euros, that was a thirty three million euro. So maybe thirty six million dollars B round We've done, we did a debt financing round in 2018 twenty seven million euros, and then a little bit opportunistically we did a C round which…”
Disclosure
M-Files allocated $30 million of Series C to secondary liquidity
“To be even more precise, we used about thirty million of that a team for secondary.”
Assertion Not checkable as stated
M-Files raised capital while remaining cash flow positive or neutral
“And since we were cashflow positive or cashflow neutral. So like the business didn't really need a lot of additional capital.”
Disclosure
M-Files charges per internal seat, excluding external clients from billing
“We're actually charged by the seat of seat of the employees in the firm. So let's say tax advisory firm. So the tax experts would be the mFiles users, and we basically let them serve any number of external clients. We don't charge by that.”
Assertion Not checkable as stated
M-Files employs over 600 people, including 150 engineers
“We're about let's say over, over 600 employees and I believe the engineering team is maybe 150.”
Assertion Not checkable as stated
M-Files employs over 50 quota-carrying sales representatives
“It's in the order of 50 plus.”
Disclosure
Nivala pauses sales hiring to focus on current team capacity
“Right now I feel we have, let's say, enough capacity in our sales teams that we don't want to just go and hire new sales reps.”
