How Boomerang Commerce Hit $10M+ in ARR Helping Brands and Retailers

If you’re a brand or a retailer looking to maximize growth in 2019, odds are that you’re focusing on your Amazon presence. Few other channels provide the organic growth opportunities Amazon does at scale.

Boomerang Commerce is a software tool built to empower profitable growth through data driven merchandising decisions for brands and retailers. Their platform helps companies drive profitable growth for their Amazon business by automating actions across sales marketing and operations.

How much is Boomerang Commerce doing in ARR?

Boomerang Commerce is a pure-play SaaS business that charges its enterprise customers on an annual subscription basis. Product pricing is based on company revenue, number of SKUs, and modules. On average, customers pay them around $250k annually at this point in time.

According to CEO Guru Hariharan, Boomerang Commerce serves around 36 total customers today and is doing more than $10M in ARR. The business has recently repositioned itself and has grown revenue in the low double digits year over year.

What is Booomerang Commerce’s churn?

With three pricing axis upon which to drive expansion revenue, the company has been able to double contract values year over year, in some cases. Check out our post on pricing analytics to learn more. Overall, the company is exhibiting net negative revenue churn right now, with net revenue retention between 110% and 120% annually.

From a customer acquisition standpoint, Hariharan explained that Boomerang Commerce is willing to spend up to first year’s contract value to land a new deal. The company is receiving payback within 12 months right now, but expects that figure to increase going forward.

How much has Boomerang Commerce raised?

Launched in 2012, Boomerang Commerce has raised more than $20M in total outside capital thus far, with the latest round closing in 2016. Hariharan noted that the company is not currently in the process of raising additional capital despite burning cash and is instead focused on growing their new consumer brand product.

Boomerang Commerce’s team of 80 full-time employees is split between India and San Francisco.