How Accucode CEO Kevin Price grew Accucode to $100M revenue and 1K customers in 2022.

hey folks my guest today is Kevin price he's the founder and CEO of Accu code at 27 years old he's become a broad technology uh and services company with over 100 million bucks in Revenue 150 employees they've got Hardware scale deployment service and support 3D printing and software development in-house their latest SAS offering includes four work in order for work which we'll jump into today he's in the process of launching their new forward SAS Division and looking for senior leadership on the business unit Kevin you ready to take us to the top absolutely thank you he bets on the 100 million Revenue today I know a lot of what you do is Hardware right POS systems for restaurants things like that what's the revenue breakdown Hardware versus SAS uh historically it's been about 70 percent hardware and uh the ballot and services the uh the 3D division the small unit today it's doing less than a million dollars here in Revenue but lots of interesting stuff so what what is tell me what customers are paying you for those that are not familiar with Accu code what are what are you building so we also we and we also have our first early customers on uh for work so four works the latest software service offering uh we have two different products in that Suite for work in order for work and I'm just in the process of setting up that division but it's got about three hundred thousand dollars a year in Revenue behind it today it's all monthly subscription based and Accu code's actually been using the software for the last eight years to run its own internal operations I call it uh order to end of life but it's workflow Automation and business process automation for just about any kind of process or technical industry you can think of and again 100 million in Revenue 70 is Hardware the other 30 is services in SAS so there's 30 million there of Revenue what are the other software platforms that you're selling to make up that 30 million in software Revenue um it's it's other people's software warehouse management systems um industrial uh you know uh what do they call it uh um manufacturing automation uh that kind of stuff so you've built these tools and sold them to warehouses yes interesting okay we're also doing a lot of r d work around artificial intelligence particularly natural language chat Bots and uh visual cognition so the ability to use cameras to collect data for instance in your manufacturing or warehousing environment we've even talked to you know food processors and other others about using it to do quality control and product identification all just with cameras okay so that that just declared that those tools you've built for warehouses things like that that's doing about 30 million dollars a year right now in Revenue software okay and on the and then tell us about the hardware space is it still mainly POS systems uh it's actually networking infrastructure is our biggest category and has been for a long time uh so Cisco extreme networks uh Aruba um Nokia are all partners and uh we you know we've deployed tens of thousands of commercial networks um uh do Lumen is one of our biggest customers and we do uh all of their B2B Network deployment work for their mid-market customers and for work that piece of software is what runs that whole Field Services operation for aluminum and we share real-time visibility of all those projects with Lumen through that platform and on that 70 million dollars of annual Hardware Sales I mean are your margins basically zero is that a loss leader for your software stuff or do you make money no the hardware business has always been uh I refer to it as a self-funding business development activity um it's it's the margins are are not great but it's always profitable and uh you have to know how to run that business and run across if we can do it but uh it's all about scale I want to sell it to you by the truckloads and ship it to you by the Box yeah because it it we're in we're we're in the distributed device population that's our Core Business and as we see things like iot and Robotics uh explode because of Labor Market issues um people have a challenge of how are you going to acquire deployed service and support tens of thousands of devices potentially at hundreds of thousands of locations and and we've built software specifically for doing that oh what's going on there YouTube good to see you guys now imagine this you love watching these interviews with SAS Founders but imagine if we took all of the valuation data out from over 2807 interviews I've done manually saves you a lot of time well we've done this we've built the into the beautiful interface inside of founder path check this out I'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals for evaluation this year now the secret evaluation is there's many different ways to 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the interview so just to be clear uh that's those pieces of Hardware are you actually building these yourself or you're buying them cheap and marking them up you know we we have our we have a new AI kiosk um called our our Edge AI kiak that is our own in-house design and manufactured device but all the other Hardware we're selling today uh is made by you know one of the market leaders in those categories interesting okay and so what markup do you like to make for yourself we're doing five percent ten percent thirty percent technically gross margins run between 12 and 20 in the hardware space and that's grossmarginine.net but um you know like I said it's always profitable yep so what is net like five percent two percent uh probably more like three or four okay okay interesting and what got you into this I mean were you uh you know electrical engineer or something in college or when did you start no no I bought a commodore score when I was nine years old back in the 70s and taught myself basic and I've always been a science and technology nerd and I have I've studied physics and electrical engineering and chemistry since I was very young my degree is actually in business and particularly in marketing um but I I've never let that stop me and uh from a from a product standpoint you know we'll we take on almost anything we've done all kinds of different Technologies makes sense now what's a team size today how many full-time uh like I said about 150 full-time employees and given time several hundred contracts that are out in the field doing this install work what those those in the field folks they're like installing on-prem like routing software or routing iot stuff or what yep exactly so we're doing you know routers switches access points uh dnf connectivity so basically we'll take we'll go do a physical deployment at like a bank or a restaurant or a factory or a warehouse and not and we're taking it from the dmarc which is where the Telecom provider brings it onto the property all the way through the facilities and designing the network specifically to cover you know all the operational areas with adequate bandwidth um that's that's the bulk of what we do out in the field we also oh you're muted Kevin go ahead you also what I said we also run repair work uh like that as well and the same same software for work is what drives all of those processes for all and have you bootstrapped this or raised capital um I'm still bootstrapped so I've sold three different software to service businesses previously and uh the biggest one was for 25 million dollars we sold it to Descartes uh a little over four years ago was that all cash up front or was there stock there too and earn out no that was all stock or I mean all cash um cash deal there was there was...