SaaS Interviews with CEOs, Startups, Founders
Reveleer Hits $8m ARR, New CEO Gets 10% to Reboot Company, $18m Raised, Raising New $10m Now
29 Jun 2020
Chapter 1: What is Reveleer's business model and revenue structure?
Today, we have about 30 customers. And on average, we earn about $375,000 per plan that we cover and services revenue at about $275,000 in SaaS revenue. So we have both a services model and a SaaS model.
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He's the CEO and president of a company called Reveilleur. In his role, he's responsible for fostering product innovation, accelerating business growth, and scaling operations to propel the company's impact for health plans. They're a SaaS platform focused on value-based care. All right, Jay, you ready to take us to the top?
Yeah, for sure, Nathan.
Let's do it. So what does that mean? What's value-based care?
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Chapter 2: How does Reveleer support value-based care?
Run rate SaaS company. And then you've got another 30% juice on top of another 2 million or 3 million on setup fees, professional services.
Yeah, perfect.
Your numbers tie up. Sweet. That's great. Okay. So that's the company. Now you, you mentioned this has been expanding over time. So take me back to day one. When'd you launch the company? What year?
Yeah, so, well, there's probably two day ones. So I joined the company in 2016. I'm not the founder. I got hired by our investors to take a business that they had a lot of faith in, where they thought they needed somebody who had more scaling experience. So I jumped in in mid-16. And so there's kind of the chapter that's been written from 16 onward.
But the company was actually launched back in 2009, more as a professional services business that started to morph into a software company. So the company's been around a while, but I like to think about kind of what's been happening over the last three years.
Between 2009 and 2016, how much company did the capital raise before you came? Close to $8 million. $8 million raise. And how much total today raised? Just under $18 million. Okay. Why'd you have to raise an extra $10 million? Why couldn't you come in and fix stuff and get cash flow pumping and not have to take extra dilution?
Yeah.
Yeah, so we're solving a big problem. We're solving a complicated problem.
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Chapter 3: Who are Reveleer's primary customers?
Working with health plans require technology that is highly secure. And I would say the other part is to support the health plans and to solve a problem across the area called quality and risk adjustment are effectively, while they're like products, they're different products. And so from a product development standpoint requires a lot more capital.
Got it. Okay. So I assume obviously you raised additional capital. Now you're burning capital to drive growth. Is that accurate? Are you cashflow positive?
uh we will end the year uh cash flow positive okay that's great today though like last month are we talking burning like a million a month or 100 grand a month or how close to your oh no yeah i think we've been really great stewards of capital so we're burning about a hundred grand a month oh that's not okay that's not bad at all and what's your team size team size we've got uh today about 80 people full-time okay how many engineers uh 15 engineers 50 you know all these numbers you've listened to the podcast before haven't you
Yeah. Well, look, like anybody who's worked with me know I'm a numbers guy. So I like it right up my alley.
I like you when I interview another numbers guy. That's good. Or gal. All right. So 15 engineers. And at this price point, I imagine you have serious kind of field sales operations. How many quota carrying sales reps?
Yeah. So we actually have a small team, but we're expanding it. We have two quota carrying reps. But our sales leader also effectively carries quota as as does effectively anybody at the senior team, right? We all kind of play a part.
Well, so Jay, 80 people full-time, 15 are engineers, two are quota carrying reps. Who are the other 60 people?
Yeah. So, all right. Yeah. So those, we've got on the product side, we've got a team of six. And then our operations team, we've got about 50 people now. So, you know, we talked about the 10 million revenue. You know, we have business under contract to have that number be about 70% higher next year. And so the 50 in ops are effectively supporting that new growth that's already been sold.
What is it? I don't understand what that means in your space. What does an op mean?
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Chapter 4: What pricing models does Reveleer use for its services?
Okay, so 10% gross revenue churn. And then how much expansion on that same cohort?
150%.
Okay, so just to be clear, the customers you had, ignoring new customers over the past 12 months, just the customers you had from exactly a year ago, 10% of their revenue churned, but that same cohort of customers, you upsold 150% of their revenue. Is that accurate?
That's accurate.
That's great. Okay, I mean, so that's obviously, I mean, that's like 240% net revenue retention. I would put that definitely in world class. The question is, can you do that at scale?
Yeah, so we think we can, and we look at the 90% retention and I would say that that's not something we're satisfied with.
And so we think from an improvement standpoint, we can drive that up towards 95 through some improvements in product, additional capacity in our customer success team, and then just maturing kind of how we sign up customers and making sure that we have the right fit on the front end and we've appropriately identified the solution.
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Chapter 5: What led to the recent capital raise for Reveleer?
Well, we'll look for that news. That'll be exciting. On that note, Jay, let's wrap up here with the famous five. Number one, what is your favorite business book?
You know, my favorite business book would probably be Never Eat Alone by Keith Ferrazzi. Although I'm reading right now, I'm reading The Founder, which is also a great book.
Very good. Number two, is there a CEO of your following or studying?
Yeah. So a timely one with John Donahoe, who just stepped into the Nike CEO position yesterday, leaving ServiceNow.
Yeah. Number three, what's your favorite online tool for building your company?
You know, since I'm kind of a market facing leader, I would probably have to say HubSpot. So I look into the app every day to see our sales team is doing and building pipeline and and drive an activity with prospects.
Jay, number four, how many hours does he begin every night?
Uh, target seven, but, uh, not often hitting it. So I'm about six and a half.
Okay. You mentioned a wife earlier. So it sounds like married. How many kids?
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