Shipyard App Revenue (2023)

Shipyard reported approximately $12,000 in monthly recurring revenue as of July 2023, equivalent to roughly $144,000 on an annualized basis. That figure is derived from 30 paying customers at a median contract value of $400 per month, a calculation the host proposed and Burch confirmed as roughly correct.

Shipyard had 30 paying customers and 1,600 total platform users as of July 2023. The gap between free and paid users reflects the company's freemium model, which Burch said is designed to compete with open-source data orchestration tools that offer free proof-of-concept environments. Burch acknowledged the free-to-paid conversion rate is something the team is actively working to improve but did not provide a specific conversion percentage.

The median paying customer spends approximately $400 per month. Pricing is usage-based, combining user seats with runtime consumed within the application. Burch noted that customers typically enter at low price points and grow their usage over time. The first customer, a consultant working for Rental Wheel, a company that helps consumers purchase custom wheels for vehicles, signed on organically in 2020 and remains a customer as of the interview date, with the company continuing to use Shipyard for data workflow automation even after the original consultant departed.

Shipyard generates revenue through a usage-based pricing model that combines user seats with application runtime. The median contract value is $400 per month. Monthly gross churn is approximately 1%, which Burch confirmed is measured on a gross basis. The company does not rely on an active internal sales motion to drive expansion within existing accounts.

Existing accounts are expanding their usage at a rate of 10 to 15 percent per month, and Burch confirmed this usage growth translates directly into additional revenue given the usage-based structure. He noted that expansion starts from a low base and naturally decelerates as customers scale, particularly for workloads where customers are actively trying to optimize and reduce cloud runtime costs. Upsell features within the product include extended log access, version control, API access, audit logging, MFA controls, and single sign-on, with the latter features targeted at larger enterprise customers.

The company uses a freemium model to compete with open-source data orchestration tools that offer free cloud-hosted proof-of-concept environments. Organic SEO, accelerated by the use of Webflow to rapidly publish integration-specific landing pages, is the primary customer acquisition channel. Burch credited this strategy as a key driver of customer acquisition. Profitability, gross margin, CAC, LTV, and burn rate were not discussed in the interview.

Shipyard had 12 full-time employees as of July 2023. Team composition beyond headcount was not discussed in detail during the interview.