Disclosure certainty 4/5 debate potential 1/5

Ativo Group operated at roughly breakeven EBITDA on $3.8 million revenue

Len Rio · He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller · Apr 4, 2021 · at 14:02

Len Rio explains the financial profile and profitability of Ativo Group during an interview with Nathan Latka.

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“It was basically break even.”

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More from Len Rio

Insight
Subscription software transformed ERP customer lifetime value into a 10-year relationship
“It replaces the need to have to spend to write a check for six figures to buy the license upfront, like the old model was some three, four or five years ago. And, you know, it shifted the lifetime value of the customer from that, just that first year where it …”
Len Rio Apr 4, 2021 ▶ 6:57 He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Insight
Learning a new ERP product requires three to four years and $500,000
“Starting from zero and trying to learn a new ERP product is a long, long road. It's a good three, four years. And Half a million dollars of learning. So it's a lot easier to acquire.”
Len Rio Apr 4, 2021 ▶ 11:22 He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Prediction Not checkable as stated
Ativo Group projects approximately $3.6 million in 2021 revenue
“We'll probably do 3.6, I would think.”
Len Rio Apr 4, 2021 ▶ 9:59 He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Disclosure
Ativo Group currently generates about 60% of its income as recurring revenue
“We're about 60% there. We need to get to say, 80, 90% recurring revenue without any large, without any one large customer being, you know, the driving force behind that number.”
Len Rio Apr 4, 2021 ▶ 13:20 He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Disclosure
Ativo Group's largest single customer accounts for up to $700,000 annually
“Probably Six, 700,000 a year.”
Len Rio Apr 4, 2021 ▶ 13:37 He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
Disclosure
Ativo Group is fully bootstrapped without outside venture capital
“It's a hundred percent bootstrapped.”
Len Rio Apr 4, 2021 ▶ 14:36 He Makes $4m Selling Other Peoples Software, Inside The Head of A Power Reseller
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