Airtory Revenue, Valuation & Funding (2024)

Airtory was generating approximately $120,000 per month in revenue as of June 2023, up from roughly $80,000 to $90,000 per month approximately one year earlier. Julian Frachtman told Nathan Latka that the company recorded $1 million in gross revenue in 2021 and $1.3 million in 2022. Frachtman said he expected 2023 revenue to reach $1.5 million to $2 million, citing several new products in development, though that figure is a founder projection and not a confirmed result.

Airtory had approximately 60 paying customers as of June 2023. The Arena Group, which owns Sports Illustrated, Parade, and Men's Journal, is among the company's most recognizable accounts. Frachtman said the Arena Group pays between $5,000 and $8,000 per month, a figure he described as slightly above average, and that the platform allows the Arena Group to offer custom ad unit templates that generate higher CPMs for its advertisers.

Airtory's largest unnamed customer spends $60,000 to $70,000 per month and is growing at 20 to 40 percent per year. Frachtman said that customer's growth is driven by its own sales effectiveness rather than anything Airtory controls directly, but that the impression-based pricing structure means Airtory captures a proportional share of that growth automatically. Frachtman said he believes that customer could reach $1 million in annual contract value within 12 to 24 months. The white-label SaaS component is priced at $1,000 to $1,500 per month for customers who want to remove Airtory branding or access advanced API features.

Airtory generates revenue through two streams: impression-based utilization fees and a white-label SaaS fee. The utilization fee is the primary driver and scales with the volume of ad impressions a customer delivers. The SaaS component, priced at $1,000 to $1,500 per month, applies only to customers who require white-label branding removal or API access for advanced reporting and creative interactivity.

Frachtman said the company is profitable as of June 2023 and that margins after founder and co-founder salaries are, in his words, very good, though he declined to provide specific margin figures on the record. He noted that for the first three years of the company's operation he did not pay himself, which reduced cash needs during the early period. Frachtman said the company is focused on figuring out how to scale sales, describing that as its primary current challenge. Profitability was confirmed by Frachtman but gross margin percentage, churn, LTV, CAC, and net revenue retention were not discussed in the interview.

Airtory's team includes at minimum Julian Frachtman and co-founder Ashwin Krishnakumar, who leads engineering from Bangalore, India. Frachtman mentioned that early capital was used in part to pay engineers in India and to explore hiring product and sales staff, though he said many of those hiring experiments did not work out. Total headcount was not disclosed in the interview.