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SaaS Interviews with CEOs, Startups, Founders

No Code Agency Moves to SaaS, 1200 Customers, $2m+ ARR

21 Aug 2021

Transcription

Chapter 1: What is the current revenue run rate of the company?

0.031 - 1.753 Albert Santillo

Yeah, we're well north of that.

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2.194 - 6.2 Nathan Latka

Will you break 2 million run rate this year? Have you already broken it? We have.

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6.26 - 10.385 Albert Santillo

Overall run rate? Absolutely.

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10.506 - 30.194 Nathan Latka

You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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30.996 - 42.155 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public.

42.175 - 46.322 Albert Santillo

We got to grow faster. Minimum is 100% over the past several years.

46.437 - 57.046 Nathan Latka

or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Looker CEO Frank Bean before Google acquired his company for $2.6 billion.

58.047 - 62.031 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

62.832 - 87.407 Nathan Latka

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.

Chapter 2: How is the transition from agency to SaaS being managed?

345.134 - 347.736 Nathan Latka

Will you break $2 million run rate this year? Have you already broken it?

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348.617 - 354.983 Albert Santillo

We have. Overall run rate? Absolutely. So how aggressive are you trying to be this year? We're trying to do triple digits overall.

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355.604 - 366.829 Nathan Latka

Wow. Okay. So, I mean, do you think you can break like a $5 million run rate this year? Is it doable? Maybe. Like, is that a comfortable goal or like a stress goal?

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367.703 - 370.766 Albert Santillo

All right, fair enough. I told you we don't publish a number.

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370.786 - 387.04 Nathan Latka

All right, but now we know. Now we know. Between two and five. So I won't push you harder. Between two and five, that's great. So tell me about the thing, because you're in this beautiful spot where you have an agency that's done very well. You're taking advantage of a no-code platform. You're building a platform now. Higher margin of revenue, no touch, et cetera.

387.561 - 397.71 Nathan Latka

There's a lot of people that get stuck, though, where they try and run both the agency and the platform at the same time, and neither one scales. Will you ever shut down the agency completely and go all in on the SaaS, even if revenue takes a hit?

397.69 - 418.455 Albert Santillo

Sure. We were never founded to be an agency. Although it sort of looks like that, what it really is is professional services to implement our platform. So if you look at the history of enterprise SaaS in general, that was always the case, right? So you needed help implementing products.

418.475 - 440.404 Albert Santillo

Even though our product is self-service, a lot of times we run across non-technical founders, et cetera, or even larger enterprises that can't find the talent to use it and want our help. And we do the services side at a world-class level. The idea is that over time, we will transition the services side to an ecosystem of providers, which we've begun to do. We've begun to do that.

440.644 - 453.622 Albert Santillo

We have a small ecosystem of them now. We have a product that's eight base for the agencies that's a little bit different than the core product that you see on the website.

Chapter 3: What pricing models are being used for the low-code platform?

629.388 - 637.881 Albert Santillo

So if you look at where we start to where we end up with a client and revenue, you see a very significant increase in usage and upsell that happens.

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638.122 - 640.666 Nathan Latka

What is that net dollar retention?

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640.686 - 645.193 Albert Santillo

It's somewhere in the 135 to 140 range.

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645.213 - 648.338 Nathan Latka

That's very good. And what's your team today? How many folks?

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649.229 - 652.494 Albert Santillo

We're approaching onshore and offshore, we're approaching 50. 50.

653.816 - 657.923 Nathan Latka

Where do you like to offshore the most?

659.004 - 664.954 Albert Santillo

We have an office in St. Petersburg, Russia, and we also have some folks in Latin America.

665.675 - 670.442 Nathan Latka

How many engineers total, including offshore talent?

670.462 - 677.413 Albert Santillo

Engineers total is probably, it's above 30.

Chapter 4: How many customers are currently using the self-serve model?

838.298 - 844.366 Albert Santillo

Um, shoot. Yeah. I'm going to say the MailChimp founder.

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844.386 - 849.673 Nathan Latka

Yeah. Ben Chestnut. Number three, how many hours of sleep? Sorry. What's your favorite online tool for building a base besides your own.

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850.594 - 859.81 Albert Santillo

Favorite online tool for building a base. It would definitely be eight base. Um, Man, I'm going to go with boring, you know, sort of envision.

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860.33 - 864.955 Nathan Latka

At least he didn't say Gmail. Okay. Number four, how many hours of sleep do you get every night?

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865.895 - 874.503 Albert Santillo

I'm shooting. I'm shooting for seven. Sometimes it's six, sometimes it's eight. But I've learned that my performance and my sleep are very much directly correlated.

874.904 - 876.525 Nathan Latka

And Albert, married, single, kids?

877.086 - 877.446 Albert Santillo

Married.

877.887 - 878.187 Nathan Latka

Kids.

878.207 - 886.423 Albert Santillo

How many? Married for a long time. Four kids. Wow. Okay. How are you? I'm 53. I'll be 54 in a few days.

Chapter 5: What marketing strategies are driving customer growth?

886.784 - 888.51 Nathan Latka

Hey, congrats. Happy early birthday.

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888.952 - 889.855 Albert Santillo

Thank you. Thank you.

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889.875 - 892.485 Nathan Latka

All right. Take us home here. What's the menu we should do when you were 20?

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893.63 - 913.599 Albert Santillo

Oh, man, it's probably I'm probably going to give you the same answer I gave you the last time. But I'm going to say that it's like at the end of the day, like as a founder, we're always scared to death about risk and failure and so forth. And the truth is, at the end of the day, you just got to go for it. And life's too short. You know, at the end of your life, you're not going to care.

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913.619 - 915.722 Albert Santillo

You're going to care about the risk you didn't take.

915.702 - 931.197 Nathan Latka

Guys, Aidbase founded in 2017. They raised about $4.8 million to date, serving over 1,200 sort of no-touch customers. They use the platform to build their no-code products and MVPs from scratch. And they also have an enterprise cohort as well. Call it north of a $1.52 million run right now.

931.217 - 943.789 Nathan Latka

Hoping to scale to $5 million here quickly as they look to scale their platform revenue faster than their pure agency revenue. They are doing that 135% net dollar retention to date as Albert continues to scale. Albert, thanks for taking us this hour.

944.389 - 945.27 Albert Santillo

Thank you, Nathan.

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