Assertion Not checkable as stated
Output scaled from zero to 100,000 SaaS customers in 16 months
“When we started working with Output.com, they were only traditional software, and we were, we helped them pivot and launch their SaaS product about 18 months ago, and basically got them from zero to a 100,000 customers in about 16 months.”
Disclosure
Output spends high six figures monthly on paid customer acquisition
“High six figures.”
Opinion
Childress: 99% of Output's enterprise value is in its SaaS model
“Oh, it's definitely going to be software.
That's the entry point.
I mean, the hardware business is really a very niche business for them.
They have a desk, and they have speakers but this is, the, 99% of the value of this company is in the SAS model.”
Insight
Bidding for target ROAS instead of CPA cuts churned trial waste
“This might get a little technical, but we'd like to move from what's called target CPA bidding to target ROAS bidding. So we want to train the algorithms to bid for a return on ad spend like an e-commerce product as opposed to bidding on a target cost per acqu…”
Assertion Not checkable as stated
Childress says 70% of Output's revenue comes from SaaS subscriptions
“Right now, I'd say probably 70% of their revenue is SaaS.”
Assertion Not checkable as stated
Output acquired its first 100 SaaS customers through paid search
“Well, the first hundred customers was through paid search.”
Disclosure
Hop Online manages hundreds of thousands of ad keywords for Output
“Hundreds of thousands.”
Assertion Not checkable as stated
Output's Arcade software converts 60% of free trials to paid
“And the trial conversion rate is about 60%.”
Assertion Not checkable as stated
Output's paid ad clicks convert to free trials at 5-7%
“Oh, the conversion rates are about between five to seven percent from click.”
Assertion Not checkable as stated
Output's subscriber cohorts shed 30% initially before retention stabilizes
“What we see is that the cohorts Once people make that first payment, there's about. 60% of that starting cohort that will stick for many, many months. So there's a big drop off in the first few months. So the cohort sheds about 30% and then it flattens out and…”
Assertion Not checkable as stated
Output generates 1,000 new software trials per day
“So right now we're doing a thousand new trials a day.”
Assertion Not checkable as stated
Output had up to 20,000 customers before transitioning to SaaS
“Their customer base was only
Maybe 15, 20,000 before they went SaaS.
So this got us started, but it wasn't really, at some point we had already cross sold to all of the current customers.”
Assertion Supported
Output raised $45 million while its founder retained majority ownership
“I believe, no, I don't think they did that, but they raised forty-five million, and the owner still maintained a majority, so you can,”
