Assertion certainty 4/5 debate potential 1/5

Practice Ignition reached break-even profitability in 2019

Guy Pearson · Practice Ignition Breaks $24m Revenue, Raises $50m at $330m Valuation Helping 5,000 Accounting Firms Scale · Jan 4, 2022 · at 7:43

Guy Pearson reflects on Practice Ignition's financial trajectory leading into their Series B round.

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“We actually got through the break even in 2019”

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More from Guy Pearson

Insight
Pearson: Australian investors struggle with unprofitable, fast-growing startups
“Australians how would you put this? They like to see efficiency and capital deployment. As a mindset, we're used to profitable companies. And so when you've got something that's not profitable, but growing quickly, people sort of struggle.”
Guy Pearson Jan 4, 2022 ▶ 8:44 Practice Ignition Breaks $24m Revenue, Raises $50m at $330m Valuation Helping 5,000 Accounting Firms Scale
Insight
Pearson: Freemium failed because accounting customers only adopted paid software
“The freemium Model is something we tried way back in the day, and that did not work. As soon as we turned pricing off and payments, or sorry, charging everyone for the software, we had a whole bunch of emails going, oh great, now I'll start using it. So, big l…”
Guy Pearson Jan 4, 2022 ▶ 14:19 Practice Ignition Breaks $24m Revenue, Raises $50m at $330m Valuation Helping 5,000 Accounting Firms Scale
Disclosure
Practice Ignition rejected higher Series C valuations to partner with JMI
“When we did this round, we turned down higher term sheets to work with JMI.”
Guy Pearson Jan 4, 2022 ▶ 18:12 Practice Ignition Breaks $24m Revenue, Raises $50m at $330m Valuation Helping 5,000 Accounting Firms Scale
Assertion Not checkable as stated
Practice Ignition processes over $1B in annualized payment volume
“We've got a couple of billion dollars of revenue under management, and we process north of a billion annually at the moment”
Guy Pearson Jan 4, 2022 ▶ 3:29 Practice Ignition Breaks $24m Revenue, Raises $50m at $330m Valuation Helping 5,000 Accounting Firms Scale
Disclosure
Series C secondary included $4M for team and $6M for investor buyout
“JMI let, it was about four million went to the team. Six million was the buyout Tuesday investor.”
Guy Pearson Jan 4, 2022 ▶ 19:05 Practice Ignition Breaks $24m Revenue, Raises $50m at $330m Valuation Helping 5,000 Accounting Firms Scale
Assertion Not checkable as stated
Practice Ignition's customer base is 95% CPAs and bookkeepers
“95% of our customer base are CPAs and bookkeepers around the world.”
Guy Pearson Jan 4, 2022 ▶ 2:23 Practice Ignition Breaks $24m Revenue, Raises $50m at $330m Valuation Helping 5,000 Accounting Firms Scale
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