BrightEdge Revenue & Funding (2024)

[00:00] But this guy's bootstrapped BrightEdge to a $100,000,000 of revenue. He's got an incredible story. He's built an incredible team, and the product speaks for itself. Please let me welcome to stage Jim Yu from BrightEdge. Jim, come on up. [00:17] And did you know all that right? [00:18] >> That's all fair? [00:19] Almost. Almost fair. [00:21] >> Alright. Alright. Coach us up. Teach us up. This is great. Excited to be here with everybody, and share some of the lessons I've learned in terms of, scaling and running BrightEdge at 100,000,000. We built a business with about 50,000,000 in primary capital. It's been a long journey, over fifteen years. It's actually eighteen this is the eighteenth year of running the company. So lots of lessons learned, lots of getting punched in the head all the time, but, [00:48] >> you know, a couple of things that I've learned. A big part of running at scale, I think, is really sort of how do you break up running your week, running your month, running your quarter, and ultimately, how you run your year. Right? And so a couple of things I've learned. First and foremost, really, as you in the early days of the business, you're really focused on how do you build. Right? So you're iterating. You're used to [01:08] >> experimentation. Once you figure out your product market fit and your core formula, it all becomes about how do you find this right balance between how you run and how you build. Right? The cadences are really good at helping you drive towards run, but you have to be very deliberate about thinking about when are you going to drive the build of the business. So let me tell you a little bit about what I do. So this is [01:31] >> the Monday morning meeting. It's a running cadence to really drive accountability throughout the organization. It starts and runs through every part of the organization. So the go to market function, starting from marketing and market dynamics as you scale a lot of this, like, play in multiple segments. What's happening from a competitive landscape perspective? What's happening from a disruption perspective? Right? So you wanna keep a pulse on that. Then it becomes about new business. What's the demand [01:57] >> generation that you're getting? What are the number of leads and qualified opportunities? Then it becomes about bookings. So the sales organization reports back out on that. Then it's about customers across the life cycle. As you get new customers, it's about are you onboarding those customers? Well, what's that first touch experience? Right? The first ninety days are super important. So having very clear optics on that every Monday morning from the team that's responsible for implementation and onboarding. [02:26] >> Then by segment, right, because we run today in four different segments across mid market, enterprise, international, and channel, really looking at in each of those segment leaders and BU leaders, what they're delivering in terms of customer satisfaction, customer engagement, gross dollar retention, net dollar retention, and then other key parts like technology and products, how are they doing on delivery of the road map. Ultimately, you also want to keep a close eye on finance, understanding the P [02:55] >> and L of the business, the cash flow of the business. This drives a lot of the rhythm of the operating cadence of running the business. It seems about 500 people organized around multiple sites, But by function, really making sure you're kicking off and running the entire company across that drumbeat of driving execution across the business. This is important for driving visibility, alignment, and ultimately team accountability to each other, not just to you, but to each other [03:23] >> around what each of those team members are going to deliver across the executive team. Tuesdays for me are kind of about that build cadence. It's about stepping back and looking at the bigger picture of what's happening in the market, right, focused on innovation as well. In our business, as Nathan mentioned, we're in search. A lot of change happening with search and AI. So spending time dedicated with the innovation and R and D team. This is a [03:49] >> little different than the product team. This is with more the hardcore sort of engineers that are working on new data, new innovation, what's happening. Right? And really sort of that's a more free flowing working with labs, understanding sort of what are the next generation set of innovations that we have to drive, and that then leads to sort of the kinds of thought leadership that we put out. It also leads to how we think about the broader [04:11] >> ecosystem. But the Tuesday is really about stepping back and looking at the big picture, and this theme is important that you'll see is kinda operating cadences focused on running the business versus cadences that are focused on stepping back, thinking about the strategy and building the business. And I found this is a good way. Now you might find different days, but to force yourself to get out of the firefight and step back and think about what are [04:33] >> you building, because it's easy to just get in the day to day of just running the company as well. Wednesdays for me are all about revenue, right? So there's some day of the week that's got to be all about money. So I call it sort of smelling the money, finding the money, chasing the money, that's Wednesdays. Right? And it's important that the entire organization knows, all your leadership knows it, this is the day about money. Right? [04:56] >> And so it is about every segment, every leader forecasting what are they gonna drive for the month, what are they gonna deliver, what are they gonna close. So that's, you know, sales forecasting, it's retention forecasting, it's each business unit that gets rolled up, and that drives accountability throughout the organization that there's that focus, you know, on sort of driving that rhythm of revenue. So Wednesdays for me are all about that. Closing the loop is very, very [05:21] >> important in this cadence. So you kind of see a classic forecast sort of model there, but what's really important here is having the leader call the number, and then as those time passes, hit the numbers that they're calling. Right? That sort of cadence of driving accountability on delivering is super important. [05:39] >> Thursdays are all about customer and capacity. Right? So customer really understanding the prospect to customer journey in the segments in which we play, what expectations are we setting, what are the NPS surveys by segments that are coming back, trending that over time is really important to look at the themes, and then critically, also capacity planning for the organization. Right? Each of these go to market functions and each of the major functions of the business as you [06:05] >> scale ultimately is about taking a formula that you've built in the early days and really tuning the capacity that you have across the organization to then deliver that capacity into the market. Right? That's true for prospecting and driving new accounts, but that cuts all the way through to how you onboard customers and then how you touch those customers and serve those customers throughout the customer life cycle. You can see an example here of how you look [06:31] >> at that end to end of how to plan that. Right? This is a a fairly simple simplified model of that, but you kinda see, hey, if you're 10,000,000 in revenue, you're going to $1,415,000,000 14 to 15,000,000 in a in a year. Planning month to month, how many reps are you adding in each of those areas? Critically, understanding the ramp time of those reps, understanding the underlying sort of capacity that each person can deliver at their ramp [06:57] >> levels, and then you can see the red areas are really important because that tells you when are you gonna be behind on hiring. Right? So the capacity planning then feeds into recruiting, but then it's really important for you then drive to make sure that across the team you ultimately have enough capacity to run run your business in terms of the underlying formula that you have. So two Thursdays from me are sort of about customer and capacity, [07:22] >> super important for driving that. And then Fridays are really around people and product for me. Right? So people cadence really as the organization grows and changes, really important to look at a lot of the key metrics around what do you have what what's happening in terms of new hire. There's an employee life cycle. Right? In SaaS, we think a lot about the customer life cycle. Super important. Ultimately, what you have to also deliver is an employee [07:46] >> life cycle across those pieces of the model where you're planning capacity. Right? Is who are you hiring, how are they ramping, and how is that working over time, and so you want to look at things like you see a metric here called net hiring score, which is an indicator both from the person you hired and the hiring manager on what is their satisfaction in the first ninety days right after the honeymoon period, and that's a good [08:09] >> early indicator of as you're adding people into the organization, how is that working and is it sort of accurate as you scale the business. Other things, you know, involuntary turnover, voluntary turnover, these are important metrics that trend as well to understand. And then course of HR mechanics of, you know, just like you have customer support tickets, right, sort of employee tickets around benefits and things like that and making sure that you're tracking just like you track [08:36] >> CSAT, making sure that you're closing those tickets out. So that that's an important part of the people cadence. Other really important people cadences are around key hires, the top five hires, really important every week to understand in the organization. Are you moving on those top hires as you scale? And then product, from a product perspective, looking at the road map and then also really tracking the key KPIs that you're trying to drive in terms of what [09:00] >> that product strategy is, in terms of each of those key business metrics that it's supposed to drive, and ultimately does it result in that over time. So you see an example here of how we track that and how we look at that over time. [09:15] >> Then running the month, right? So you kind of get a view of every single week, the rhythm of the business, the cadence of how it's running, and then also where you're building the business, and then every month it's stepping back and looking at how each part of the business taking a step back and looking at the overall business and how that's running. Right? And so the monthly operating metrics are a little bit different. There, you're looking [09:37] >> at the overall key SaaS metrics. Right? Your ARR, your contribution margin, your LTV to CAC, LTV to CAC by segment, understanding the trends of those over time. The unit economics of the business are very important at scale and understanding how that's shifting, because as different market shifts are occurring, as productivity changes across your organization, it's very important to understand that over time. So this is a great way that I found for us to really understand that [10:05] >> and trend that over time. And ultimately, it's very important to get this just like that Monday meeting is about sort of driving the business, you know, sort of week to week in terms of running. The monthly cadence allows you to drive executive accountability on what they're delivering against the business model. Ultimately, that's about stepping back and understanding the alignment to the business model that you're driving. And then the last thing I'd say is also a sustaining [10:31] >> cadence. Right? Like I mentioned at the beginning, to build a company at scale, what I found is over a decade, it's a long time. So ultimately there's also an element of how do you sustain that over time. It's a constant struggle. I've never found it to get easier. It's always a new set of challenges, and so I think it's very important to keep in mind sort of health and also the relationships. It's not something I'm great [10:53] >> at, but you can kinda see on the the left hand side is my heart rate, resting heart rate. I track this on on my Apple Watch because it tells me when I'm under way too much stress. You kinda see the ebbs and flows of that. That's important just to get a sense, find your own way. Right? But like understanding what you're putting your your your your your your your physical and your mind sort of pressure that [11:13] >> it's under and balancing that. And then what I found like with my wife is this kind of relationships as well, right, is is a great way to sort of connect. One of the things that I found with my wife over time is since it's been over a decade, you know, beginning we used to have date nights every week, but what we found is we'd get a nice dinner, watch a movie, and then ultimately, after a couple [11:33] >> of years of that, gain a lot of weight. So instead, what we found is there's this great trail in the back there's a great trail that's near our house, and what we switched it to was every Sunday, we would take a one hour walk together. And that walk for the last ten years has been great. It's a great way for us for her to share with me what's going on with the family, for me to share [11:54] >> what's going on with with with the business or whatever was going on, and it's just a great way to connect. Right? And and I think a lot in a lot of ways, what we do as founders is so hard that everything it never gets easier. Everybody always tells you, oh, it's how's it going? It's great. But actually, it's never that great, I think. Maybe once in a while, it's great, but usually it's not. And so there's [12:16] >> this element of finding your center of how are you going to sustain that, how are you gonna sustain the relationships that you have and that that you have as you go on this crazy journey? What I found is, look, like, some of these patterns of things to do, whether it's the walk or I got really into Peloton ing and doing the streak of that to manage my stress, that I think finding that is also a really [12:37] >> important rhythm for being able to drive and run your business. So with that, thank you very much.