Otamiser Revenue (2024)

The host summarized Loreca's 2022 revenue at approximately $250,000, and Leyts confirmed a target of $1,000,000 for 2023, describing that figure as the minimum the company should achieve. When pressed on the prior year, Leyts responded with "that's something like that" when the host suggested $200,000 to $300,000, leaving the precise 2022 figure unconfirmed beyond the host's $250,000 framing.

Loreca served 290 hotel clients across Western Europe as of January 2023, reached in less than 24 months from the company's July 2021 launch. The client base spans hotels with 20 to 70 rooms, though the portfolio also includes some smaller early-stage clients such as bed-and-breakfasts from the company's testing period.

The average revenue per customer is approximately $2,000 per month under the current performance-based model, though Leyts noted this varies by region, number of rooms, and the incremental revenue the algorithm generates. The pricing model is structured as no-cure, no-pay: hotels pay nothing if the algorithm does not generate incremental revenue above their baseline, adjusted for inflation and market demand. Loreca then takes a 25% cut of the verified upside. Leyts acknowledged that a flat per-room fee is an option under consideration but that the performance model aligns incentives and serves as a sales tool by removing downside risk for the hotel.

Loreca's revenue model is performance-based. The company calculates a hotel's baseline revenue probability using historical data, then adjusts for inflation and current market demand to isolate true incremental revenue. It takes a 25% cut of that incremental figure. Leyts gave an illustrative example: if a hotel would earn $100,000 without Loreca but earns $200,000 with it, the gross delta is $100,000, but after deducting inflation and market demand effects the adjusted delta might be $70,000 to $80,000, and Loreca takes 25% of that adjusted figure.

The company helped its 290 hotel clients generate $22,000,000 in total incremental revenue in 2022. At the stated 25% cut, that implies approximately $5,500,000 in potential revenue, but Leyts clarified that the current model has only been in place for roughly three months, meaning most of 2022 was conducted at lower margins during a proof-of-work phase. The company has been operating the full performance model for approximately three months as of January 2023.

Loreca is bootstrapped and profitable details were not discussed. Churn, gross margin, CAC, LTV, and burn rate were not addressed in the interview. The company is considering whether to raise outside capital but had not made a decision as of the interview date.

Loreca operates with a team of seven people as of January 2023, including Leyts as sole founder. The team assists with strategic decisions, though equity has not yet been distributed to any team members. Leyts noted that the company had cycled through several marketing hires, with the most recent marketing person having just joined the week before the interview.