How Pendo Moved Upmarket and Tripled Revenue

In the software world, there is no better way to improve your product offering and functionality than to observe how users interact with your platform and then make data driven changes. Collecting information, analyzing patterns, and delivering new features to address your customers’ needs is a proven formula for success.

Pendo has been helping software developers understand their users with actionable product analytics and qualitative feedback since 2013. Their platform helps enterprises bolster the customer experience of their products by installing into their applications, capturing behavior, and then providing insights back to help drive changes to onboarding, feature development, and an improved NPS.

How much is Pendo doing in MRR?

Pendo is a pure-play SaaS company that charges enterprises on a monthly basis. While the company originally played in the mid-market, they’ve moved upmarket in the last few months and have increased their ARPU from $2k to $3k in that same time.

Today, Pendo is serving north of 400 customers and is doing $1.2M in MRR according to CEO Todd Olson. The move upmarket drove significant growth for the company and helped them nearly triple their revenue year over year.

What is Pendo’s CAC right now?

While scaling their price point, CAC has remained roughly the same for Pendo. They are currently paying approximately $36k to acquire a new enterprise customer and receiving payback within 12 months.

Churn has been an impressive metric for Pendo thus far, with the company getting gross logo churn per month below 1%. Olson attributes their customer success team and the move to larger ACVs for the product’s overall stickiness.

How much has Pendo raised?

Pendo has raised $56M in venture capital to date. The company has used this capital to help drive the move upmarket, open new strategic offices globally, and acquire companies like Insert.

Going forward, Olson and the entire Pendo team of 163 employees are very bullish on the remainder of 2018 and are aiming for the ambitious goal of hitting $30M in ARR by year’s end.