CleanCloud Revenue, Valuation & Funding (2024)

CleanCloud reported approximately $650,000 in annual recurring revenue as of the September 2021 interview, implying a monthly run rate of roughly $55,000. That figure represented 320% year-over-year growth from approximately $192,000 in ARR in 2020, which equates to a monthly run rate of roughly $16,000 a year prior.

CleanCloud had 40 customers across both products as of September 2021. Customers are concentrated in mid-market and small-to-medium enterprises in highly regulated sectors, including financial services and health insurance.

The average revenue per customer is approximately $2,000 per month. Almeida told Latka that the company sells on annual contracts, with customers having the option to pay monthly or upfront. Pricing is based on two variables: the number of cloud resources being evaluated and the frequency of compliance checks, which can be set to daily, weekly, monthly, or another cadence. Higher resource counts and higher check frequency result in higher pricing.

CleanCloud generates revenue through annual software subscriptions priced on a usage-based model tied to the number of cloud resources evaluated and the frequency of compliance checks. The average customer pays approximately $2,000 per month, and contracts are annual with monthly or upfront payment options.

With 40 customers at $2,000 per month average, implied monthly recurring revenue is approximately $80,000, which annualizes to roughly $960,000. The company reported $650,000 in ARR as of the interview date, suggesting the $2,000 average and 40-customer figure may reflect a mix of contract sizes or that some customers were newer and not yet fully reflected in ARR. Almeida noted the company was approaching $1,000,000 in ARR.

Profitability was not discussed in the interview. Gross margin, churn, LTV, CAC, and burn rate were not disclosed. The company described itself as capital efficient, having scaled to approximately $650,000 in ARR on just $350,000 in total funding raised.

CleanCloud had 22 employees as of September 2021. The team operates on a hybrid model, with sales and product staff coming into the office several times per week and the engineering team working fully remote.

The team includes six engineers and three quota-carrying sales representatives, plus a head of sales. Sales representatives carry an annual quota of $60,000 in new ARR, with a fixed monthly compensation of $1,000 (approximately $12,000 per year). Commission is paid at up to 5% of closed ARR depending on seniority, and a super quota bonus is triggered when a rep exceeds their quota by 50% or more, at which point bonus payouts double. At quota, a sales rep's on-target earnings would be approximately $15,000 per year.