Owens: Paddle lost 87% of its ARR when one $350K customer churned
Christian Owens · Details of $20m Revenue Profitwell and $55m Revenue Paddle Deal and what led to the $200m Acquisition · Jun 27, 2022 · at 36:28
Christian Owens, founder and CEO of Paddle, describes the company's early scaling challenges in 2014 to host Nathan Latka.
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“We got from like zero to 400 and then went back down to about like 50. Because we lost like a customer that was like contributing like 350 K and error. And then we had to then rebuild from 50 kind of back up.”
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More from Christian Owens
Owens: Paddle has lost only 8 customers to churn in 7 years
“If we look at logo churn, we have Sort of 900 customers today. And like we've lost in terms of actual churn eight customers in seven years.”
Owens: Paddle at least doubled revenue from 2020 to 2021
“It was really high. Like it was because it was a sort of a little bit of a COVID aberration. Because we were, we saw like the tailwinds of all of that. We at least doubled the business like kind of over that kind of period of time.”
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“Two months earlier and we might have raised it like a three and a half billion dollar valuation.”
Owens: The ProfitWell acquisition likely wouldn't have happened two months later
“Two months later, I think the deal might not have happened like at all.”
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“The step for us between do we do this for SAS business and do we do it for a game is sort of fairly short versus the step of like, do you do it for SAS business? Do you, versus do you do it for Glossier or like kind of like one of these sort of D to C e-commer…”