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SaaS Interviews with CEOs, Startups, Founders

Supermetrics $40m Raise Included Secondary at $200m+ Valuation

30 Oct 2020

Transcription

Chapter 1: What is the current revenue and growth status of Supermetrics?

0.031 - 12.403 Mikael Tunneberg

Well in ARR we are now at 27 million euros and in turnover I think we'll get to 24 million maybe.

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14.459 - 34.547 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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35.348 - 46.506 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.

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46.526 - 50.693 Unknown

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

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50.791 - 70.722 Nathan Latka

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.

71.223 - 96.165 Nathan Latka

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 Mikael Tunneberg.

96.185 - 121.78 Nathan Latka

He's the Supermetrics founder and CEO. Mikael, are you ready to take us to the top? Yes. So you come back on last year in 2019, and I'm just falling in love. I'm going, oh, he starts in 2010. He bootstraps. He has a great mousetrap with Google Sheets. He's passed $12 million in revenue. This is great. And then I get news this year, he'll raise us $40 million. What changed?

121.86 - 126.968 Nathan Latka

Where was the breaking point where I said, you know what? I should go down the VC route for this thing. Let's go raise capital.

128.399 - 156.3 Mikael Tunneberg

Well, our numbers have been pretty awesome lately, as you know, and there was a lot of inbound interest from VCs, top names from all over the world. So I just figured it's probably a good time to raise some money. Um, so that's, that was the kind of reason why I started thinking about that. And, and to be honest, part of that was secondary. So I also sold some shares. So it's, it's a company.

Chapter 2: Why did Supermetrics decide to raise $40 million in funding?

469.8 - 488.902 Mikael Tunneberg

But still, I was having my hands quite busy. So I figured maybe it's a good time to start hiring. And of course, the revenue had come to the point where I could do that quite safely. Of course, here in Finland, when you hire a person, you're kind of tied to that person. It's not very easy to get rid of the person. So I also wanted to be sure that I had enough buffer there.

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488.922 - 493.429 Mikael Tunneberg

Even if things don't go that well, I can... Keep paying that person's salary.

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494.773 - 516.135 Nathan Latka

Yep. That's, that's how it makes a lot of sense. Now, did you go from 300 grand in 2015? Did you break a million dollars in 2016? Um, I, or do you remember what year you broke a million? I can check. Let me see. He's got his dashboard. He's cranking up the dashboards, folks. We can hear the server fans running.

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516.415 - 525.603 Mikael Tunneberg

So the total turnover was 1.6 million in 2016. And I think 2015, it was like maybe 600K.

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527.965 - 530.967 Nathan Latka

Since you have the chart open, what was it before 2015 and 2014?

532.609 - 536.372 Mikael Tunneberg

Well, this one only shows the last four years.

536.453 - 537.955 Nathan Latka

Okay, what was 2017 then?

537.995 - 548.611 Mikael Tunneberg

The official figure is 2.2 million, but there we did some adjustment in bookkeeping methodology. So it was really more like 3 million.

549.973 - 554.8 Nathan Latka

And what do you think you'll finish here with in 2020?

Chapter 3: What does secondary funding mean for Supermetrics and its founders?

624.524 - 637.991 Mikael Tunneberg

set up a marketing data warehouse with our system. It's very easy to get all of your marketing data into a data warehouse like Snowflake or Google BigQuery, and then you can run all of your reporting on top of that data warehouse.

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638.011 - 640.255 Nathan Latka

And so Mikael, how many customers are paying you today?

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641.18 - 656.541 Mikael Tunneberg

we have in total around 15,000 customers, but then half of these are marketing agencies. And if we look at the end clients behind these agencies, then we are approaching a million companies using our tools.

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657.943 - 669.178 Nathan Latka

Yep. Yep. And can you, just so we can understand growth, if you think you'll break this year with about 27 million in terms of euros, in terms of run rate, where were you at in terms of run rate exactly a year ago?

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670.61 - 686.357 Mikael Tunneberg

I'll have to check that number for you. Sure, sure. Yeah, take your time. So at the end of last year, we were at 17.9 million.

687.535 - 711.584 Nathan Latka

Okay, so about 21 million United States dollars. So you basically, I mean, correct me if I'm wrong here, you went from essentially a $2.5 million run rate in 2017 to 10x-ing that to about a $27 million run rate in 2019. Is that accurate? can you repeat that? Sorry. Sure. Yeah. You know, you went from about 3 million in terms of run rate in 2017, right.

711.604 - 721.301 Nathan Latka

Or call it 20, sorry, 2.5 million run rate in 2017 to 10 X in that in 2019, when you broke about 25 million United States dollars in terms of run rate. Is that accurate?

721.321 - 722.723 Mikael Tunneberg

Yeah. That was something like that. Yes.

723.378 - 743.924 Nathan Latka

Yeah. I mean, can you try and decode that for us? It can't all just be sort of accidental, an App Store placement in the Google Data Studio App Exchange. This was intentional. You're an engineer. You plan this sort of thing. Yeah, I'm actually not an engineer, but... You're not an engineer? No, no, I'm not, no. Who coded the first version? Me.

Chapter 4: How did Supermetrics evolve from an Excel add-on to a major player in data analytics?

773.502 - 789.718 Mikael Tunneberg

I think a lot of things. So... Obviously, we've been very successful with our marketing efforts. I think they're very well known. We do a lot of content that is producing a lot of inbound leads for us all the time. We have a very successful affiliate program.

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792.202 - 795.268 Nathan Latka

Tell me about the affiliate program. How does it work? What commission do you pay out?

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796.531 - 807.383 Mikael Tunneberg

The details, I'm not the best person to go into all of those. I think it's 20% for most affiliates, and then they have some tiers on the best performing ones.

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808.084 - 811.789 Nathan Latka

And those include all the marketing agencies that are signed up for you. You pay them an affiliate fee.

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812.609 - 813.651 Mikael Tunneberg

Yeah, some of those, yes.

814.692 - 820.058 Nathan Latka

Yeah, yeah. And is that 20% paid in perpetuity as long as the customer keeps paying, or is it only for the first year?

821.607 - 829.38 Mikael Tunneberg

It used to be in perpetuity, but I think there's now a limit. I don't remember exactly how long that limit is. I think it's more than a year.

831.323 - 836.232 Nathan Latka

Talk to me about your content strategy right now. Do you run this internally or have you hired an agency to do it for you?

836.652 - 851.635 Mikael Tunneberg

We do it internally. So we have a really good team to handle that. Of course, we do use outside writers to produce content, but we coordinate all of that internally. influencers in the field who write content for us.

Chapter 5: What were the significant turning points in Supermetrics' growth journey?

1326.052 - 1334.256 Nathan Latka

as you look again to continue scaling into this cohort, serving again, a big chunk of marketing agencies, 15,000 customers total. Mikel, thank you for taking us to the top. Thanks.

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