115% Net Revenue Retention: A Look at ShipHawk's Success

If you’re a large business that delivers physical products to its customers on a daily basis, you understand the importance of logistics. Tracking inventory, fulfilling orders, and getting shipments to the right place on time is no simple task and become a huge hurdle for long-term scalability.

ShipHawk was designed as a transportation and fulfillment management system to ease the burden of the logistic teams. Their software helps reduce shipping costs. free up internal resources, increase contribution margin and improve operations for scale.

How much is ShipHawk doing in ARR?

ShipHawk is a pure-play SaaS business that charges its customers on an annual, upfront basis. Typical users of their software are manufacturers, eCommerce operations, and distributors with more than $10M in annual revenue. On average, customers pay them $50k annually with pricing based on shipping volume.

Today, the company has grown to serve more than 300 paying customers according to CEO Jeremy Bodenhamer. While exact revenue figures were not disclosed, the company reported $8.4M in annual revenue in 2017 and has more than doubled every year since their founding in 2013.

What is ShipHawk’s churn?

Due to expansion through shipment growth and strong logo retention, ShipHawk has hit net negative revenue churn annually. The company is exhibiting 115% net revenue retention at this point in time, Bodenhamer noted.

Customer acquisition for ShipHawk has come largely through outbound sales, referrals from existing customers, and platform partnerships with mid-market ERPs. The company spends up to $20k in CAC today and receives payback within 8 months. Overall, Bodenhamer explained that the company is working to decrease payback period to 3 months.

How much has ShipHawk raised?

ShipHawk raised a seed round in 2013 and most recently closed a bridge round in early 2018. In total, the company has raised $12.5M in venture capital to date and is currently approaching profitability. The majority of their spend, thus far, has been allocated to acquiring new customers and driving expansion within existing accounts, Bodenhamer said.

Their team of 35 employees is split between Santa Barbara and an off-shore engineering office.