Insight
Gupta: Tying CSMs to revenue expansion incentivizes ignoring account churn
“I personally believe that CSM should be responsible for driving product adoption, building a customer champion, and making a customer responsible. Expansion will happen naturally if all those three things are happening. Now, what happens is if you give your CS…”
Insight
Gupta: Recruiter seats yield more predictable SaaS revenue than assessment volume
“Number of recruiters, because number of assessments could vary year from year, year on year. You know, you sometimes have a slow time in terms of firing, sometimes you have a sudden surge, so we don't really want, so to introduce, you know, more predictability…”
Insight
Gupta: SaaS growth should operate as a step function to break-even
“The way I look at our journey, it has been more of a step function. So you invest and you know, you reach that level. So you kind of break even, and then you say, again, I'm going to invest. And that's what we've always done.”
Assertion Not checkable as stated
HackerEarth lands typical accounts at $7k-$12k for 2-3 recruiter seats
“So I would say the right land opportunity for us is two to three recruits that comes out to about seven to 12,000 dollars to land. And then we typically expand from there. Of course, you know, we've got the long tail, which may just start with just one recruit…”
Assertion Not checkable as stated
HackerEarth says its largest accounts contribute only ~10% of revenue
“We have a fairly even distribution. I would say our top customers, some of my biggest accounts would contribute only to about 10% of our revenue.”
Assertion Not checkable as stated
Gupta: HackerEarth conducts nearly one million assessments annually
“So we, on an annual basis, we are doing close to a million assessments.”
Assertion Not checkable as stated
Gupta: HackerEarth serves approximately 500 customers globally
“So we're working with about 500 customers split, you know, distributed globally.”
Assertion Not checkable as stated
HackerEarth sees single-digit enterprise churn, while SMB churn hits 22%
“So we've got an enterprise where our revenue churn is in early single digits. And then we've got SMBs which we actually go up to 20, 22%.”
Assertion Not checkable as stated
Gupta: HackerEarth achieved 106% NRR last quarter and projects 110%
“So we haven't hit the one point mark yet. So we are in, in, in the one 10 range. So various quarters. So for example, last quarter was 106 for us. This quarter we are predicting about 110 objective is to take it to 120%.”
Disclosure
HackerEarth operates at 95% enterprise retention, targeting 97-98% for CSMs
“So enterprise CSM rep, so we are already operating at say about 95% retention and this is not including the expansions. So the goal that the person then kind of gets is in the range of 97, 98”
Disclosure
HackerEarth reveals unannounced $6.5M Series B funding round from 2018
“So we raised a total of two rounds, three rounds, including our seed. The seed was half a million, then we did a CD of four and a half, and then we did a CD of six and a half. We didn't announce the last one, so this was sometime late, 2018 is when we did that…”
Assertion Not checkable as stated
Gupta: HackerEarth has 4.5 million developers on its platform
“So we today have a user base of four and a half million developers.”
Prediction Not checkable as stated
Gupta: HackerEarth aims to reach break-even by end of 2020
“We aim to hit break even by the end of this year, and then we start reinvesting back into the business.”
Disclosure
HackerEarth employs around 140 total staff across sales, product, and CSM
“We bought a 140 people split across about 30 people in sales. I've got a CSM of about six CSM team of six, seven folks. Then engineering and product development is fairly big, about 50 other people for us there. The marketing is another 10, 15.”
Disclosure
HackerEarth enterprise CSMs handle 50-60 accounts, SMB handles up to 100
“Typically accounts owned by an enterprise, CSM is in the range of 50 to 60, while an SMB account a manager could actually own up to a hundred accounts.”
