Why Stackify Raised $3M After Bootstrapping to $1M in ARR

When your web or mobile applications are buggy or running slow, you need to know as soon as possible. In today’s competitive marketplace, one bad experience could lose you countless customers forever.

Stackify makes it easy to diagnose, improve and accelerate performance, giving developers the confidence they need to deploy early and often. Their software provides an affordable APM solution designed for developers to improve deployments, increase visibility, and ship higher quality code.

How much is Stackify doing in MRR?

Stackify is a pure-play SaaS business that charges its customers on a monthly recurring basis. Revenue per customer ranges from a couple hundred dollars monthly, well into the six-figures, with the average customer paying them $200 per month.

According to CEO Matt Watson, the company has grown to serve 900 total customers at this point in time and is currently doing $180k in MRR. The company has grown 80% year over year and is up from approximately $100k in MRR 12 months ago.

What is Stackify’s churn?

Customer retention has been a strength for this Midwest-based company, as they are exhibiting 90% logo churn annually at this point in time. Watson also noted that Stackify traditionally grows with their clients and are at 120% net revenue retention annually right now.

Landing customers has come almost solely through organic traffic for Stackify. Each month, the company hosts 800k unique visitors, generates 800 trials, and converts roughly 50 customers to paid accounts. The vast majority of these sales are conducted via self-service with limited touch from their customer service and success teams.

How much has Stackify raised?

Founded in 2012, Stackify grew to $1M in ARR by bootstrapping solely from Watson’s capital. Only recently, in 2017, did the company raise outside capital, coming in the form of a $3M Series A round. They plan to use these funds to fuel product development, sales, and marketing going forward.

Stackify’s team of 40 full-time employees is split between Kansas City and the Philippines.