Jason Maxwell, founder of MP, explains MP's business model to Nathan Latka, clarifying that MP white-labels and supports third-party HCM software rather than building proprietary tech.
0:00 / 0:13exact quote · 13.7s
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“We approach the space a little bit differently in that our technology is non-proprietary. We support a platform called iSolve which is a human capital management suite that encompasses onboarding.”
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More from Jason Maxwell
AssertionNot checkable as stated
Maxwell: HR service agencies trade at 2.5x to 5x revenue multiples
“Typically companies like us trade anywhere from two and a half times revenue to, you know, five times revenue.”
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Disclosure
Maxwell: MP operates with zero software engineers
“We don't.”
Jason MaxwellAug 22, 2021▶ 3:02Gusto Killed Their $3m Business, Pivoted to $7.8m ATS Business in HR Tech Space
AssertionNot checkable as stated
Maxwell: Gusto commoditized SMB payroll through low pricing and CPA channels
“The pricing power of the large players in the space was really commoditizing the industry. And then you had, you know, the introduction of companies like Gusto which came in with, you know, really low pricing working a lot through the CPA channel. So especiall…”
Jason MaxwellAug 22, 2021▶ 4:59Gusto Killed Their $3m Business, Pivoted to $7.8m ATS Business in HR Tech Space
AssertionNot checkable as stated
Maxwell: MP's largest client pays roughly $400,000 annually
“So our largest client pays us about 400,000 dollars annually. They subscribe to a Basically all of our services.”
Jason MaxwellAug 22, 2021▶ 7:55Gusto Killed Their $3m Business, Pivoted to $7.8m ATS Business in HR Tech Space
PredictionNot checkable as stated
Maxwell: MP will cross $10 million in recurring revenue in 2021
“And we'll do ten million in revenue this year. So we'll, we'll cross the ten million in recurring revenue mark in 20, 21.”
Jason MaxwellAug 22, 2021▶ 8:46Gusto Killed Their $3m Business, Pivoted to $7.8m ATS Business in HR Tech Space
AssertionNot checkable as stated
Maxwell: MP grew only 4% in 2020 due to client downsizing
“Twenty-twenty was an interesting year really because a lot of our clients downsized. So we only realized four percent growth last year, which was our lowest growth year in terms of, you know, year-over-year numbers.”
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