SaaS Interviews with CEOs, Startups, Founders
Kontentino Social Media Management Tool Breaks $1.5m ARR, $20k/mo Profits
13 Oct 2020
Chapter 1: What is the main topic discussed in this episode?
Our monthly churn rate is 1.5% past three months. The average is 2.5% this year. We've got 7% monthly churn rate in April. That was kind of tough, but they got back. They reactivated for a few months.
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We got to grow faster. Minimum is 100% over the past several years.
Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Looker CEO Frank Behan before Google acquired his company for $2.6 billion. We want to see a real pervasive data culture, and then the rest flows behind that. If you'd like to subscribe, go to getlatka.com.
There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. Now look, I never want money to be the reason you can't listen to episodes. On the checkout page, you'll see an option to request free access. I grant 100% of those requests, no questions asked. Hello, everyone. My guest today is Bo Pogstafel.
He is a study innovation management and marketing in Denmark and in the US. After his studies, he was invited to launch a social media tool and developed a leading ad agency in Central Europe. In less than four years, he and his team have built a tool with more than 4,000 brands and agencies on board, such as IKEA, BBDO, and VML.
He's on the Forbes 30 under 30 list and became founder of The Year in Slovakia in 2019 with his company, Contentino. Bo, you ready to take us to the top?
Yes, let's do that.
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Chapter 2: What is Contentino and how did it start?
It's more than 50%, yes.
Do you regret anything about that?
To be honest, we are supposed to have a negotiation and discussion regarding this topic within a few months. So let's see how that goes. But of course, it's a tough topic, especially if my focus is my company, basically, and happiness of my employees and of my clients. So... We'll see how that talk will go.
Yeah. How many folks are on your team today?
17 working internally in-house and another 15 people is working externally. So they're usually service providers.
Okay. And how many engineers?
Six hiring another two.
Okay. And any quota carrying sales reps or no?
We have one hunter hiring second one. And most of our sales are basically farmers. So we have more like customer success team who are qualifying incoming leads, incoming registrations, and then working with them.
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Chapter 3: What is the current monthly recurring revenue for Contentino?
Obviously, COVID was a little blip, but... Bo, do you have an obvious way to drive expansion revenue or no?
Expansion revenue, I didn't really calculate that.
Do you upsell anything to your customers after they initially sign up or no?
On average, we have 1,000 euros MRR every month. You have 1000 euros each month on ourselves.
Oh, okay. Got it. Got it. So you're, that's like, that's like, you know, 15 to 20% expansion revenue annually. So your net revenue retention is something like a hundred percent.
Yeah. Yeah. That sounds right.
Yeah. Interesting. You mentioned testing paid spend. Walk me through that. I mean, do you have a good barometer on, in terms of what your customer acquisition cost is today to get a new $130 a month account?
Yes, that's tricky. We started in January, February, we still kept it on, the CAG was 350 euros, and right now it's over 700 euros. So we more than double the expense on CAC. We're trying to solve this. I mean, there have been a lot of changes on the market. The advertising agency world shattered into pieces.
Many of the bigger agencies or bigger clients, we see the trend that they are having smaller teams or The brands are just laying off the agencies and they are trying to do everything in-house. So the teams are much, much smaller. And we think that this might affect also the CAC and also the average sales price we are having right now.
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Chapter 4: How does Contentino acquire new customers?
Well, right now, I still think that's predictably rational from then on. It's still a lot of fun. I always go back to that book.
Number two, is there a CEO you're following or studying?
Right now, Tom or Tim Kayser, the new Hootsuite CEO. I'm really observing this gentleman, what he's going to do.
Would you sell to Hootsuite if they wanted to buy you?
depends uh but i admire what his tweet is doing and it would be a fun fun merch yeah if you're if your equity negotiation in a month or so doesn't go well and you guys decide you and the agents that you want to sell the company right would you would you look at taking sort of offers in the in the sort of three to five million dollar range so it's about you know two and a half to four x your current arr i mean sounds reasonable yeah i haven't given thought but
So you wouldn't sell even if you get no more equity?
It really depends. I would like to keep it more private.
Yeah, I mean, again, the value of the show is sort of trying to bring these issues out, right? Because everyone goes through these, everybody, but no one wants to talk about them. So I'll respect your request not to push harder there. I think you've already given us a lot of good stuff to learn from. So number three, what's your favorite online tool to build content, Tino?
I really love Intercom, even though I'm kind of mad on them from time to time. I think that they are trying to really make a wider approach and forgetting about the niche. Yep. And Pipedrive. We are implementing Pipedrive right now. I'm really excited about that.
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