Data as of October 2016:
Total Customers: 2,100
Monthly ARPU: $2,500
LTV:CAC Ratio: 30
Gross Monthly Customer Churn: 1%
Net Monthly Revenue Churn: unknown
LTV Months: unknown
LTV Dollars: $300,000
CAC: $10,000
Sector: B2B Leads, Intelligence
Customer Type: Middle Market, Enterprise
Revenue
2015 Revenue: >$40M
2016 Revenue: $70M
Last Month MMR: $5,833,333
Revenue/Employee $222,222
In Episode #512, Nathan interviews @HenryLSchuck, CEO of DiscoverOrg. He’s a leading entrepreneur in sales intelligence and lead generation. Under his leadership, DiscoverOrg built the industry’s most accurate, highest quality, contact database through a mix of technology and a team of live researchers who continually call into thousands of IT, marketing, HR, and finance departments.
3 Key Points:
1. Teach users not only how to use a platform, but how to utilize it to INCREASE their revenue.
2. Have a business that is profitable.
3. Work harder than you could ever imagine working, that’s where you add value.
Famous Five:
Favorite Book? – Good Boss, Bad Boss
What CEO do you follow? – N/A
Favorite online tool? — Gmail
Do you get 8 hours of sleep?— I do
If you could let your 20-year old self, know one thing, what would it be? – “Work harder than you could ever imagine working”
Time Stamped Show Notes:
01:40 – Nathan introduces Henry to the show
02:13 – DiscoverOrg provides deep intelligence on the company and the contact information of buyers of 60,000 companies worldwide
02:38 – DiscoverOrg is selling the data on a subscription basis
03:09 – Henry worked for a company similar to DiscoverOrg when he was an undergrad
03:28 – Henry’s colleague asked him to build a similar company which is now DiscoverOrg
04:04 – Henry’s acquired iProfile
04:40 – DiscoverOrg is owned by TA Associates
04:58 – DiscoverOrg was self-funded in annual contract value in 2014
05:56 – Henry was approached by different private equity firms in 2012-2014
06:26 – Henry shares the reason why they chose TA Associates
07:45 – Customers pay annual access to the platform which is a SaaS platform and they pay for specific data
08:22 – Average annual RPU
08:46 – Average ARR
09:20 – How Henry manages churn
10:46 – CAC
11:16 – Henry and his team are based in Vancouver, Washington
11:27 – Team size is 315
11:40 – Lifetime value
11:55 – Customers stay with DiscoverOrg for 3-4 years
12:23 – What keeps you motivated in doing this?
12:30 – Henry has a 6-month-old daughter and he wants her to see that he works hard, he also wants to make it a success for TA
13:29 – Connect with Henry through LinkedIn and Twitter
15:27 – Annual renewal rate is over 90%
15:46 – DiscoverOrg is continually building new data
16:00 – The Famous Five
Hi Nathan. I listen to the TOP every now and again. I think it's pretty cool, how you get people to open up about their businesses so we can all learn.