How Cloudbeds CEO Adam Harris grew Cloudbeds to $84.8M revenue and 27K customers in 2024.

guys Cloud beds launched many years ago broke 10 million of Revenue back in 2018 today over 2.5 million beds across 27,000 paying customers use them not just to manage the bed and the check-ins but now getting into fintech he's got 75% ker over the last three years north of $50 million of Revenue he says quote easily h100 million dollar next year we'll see what happens hey folks my guest today is Adam Harris he's the co-founder and CEO of cloud beds Global leader in technology that unifies Hospitality with one platform they raised 250 million bucks of venture capital and earned numerous Awards including America's best startup employers inc's best workplaces an entrepr ey entrepreneur of the Year Adam you ready to take us to the top I love it thanks for having me well it's good to be back I know we had a we had a nice conversation back in 20121 um what is uh what's what's the big update since then none of us obviously predicted the market would do what it's Mark doing interest rates up 7% how's this impacting Cloud beds you know fortunately enough travel's been pretty pretty much Revenge travel ever since lockdown so we've seen tremendous amount of surge for individuals wanting to take that once in a lifetime trip unfortunately I think the econom is catching up a little bit and 2024 will be a really telling time especially during the winter period for all those in the northern hemisphere but look it has been one of those one of those couple years for the records in many different cap capabilities but the thing that I think I'm more most most excited about is the digitalization curve is starting to catch up in favor and the industry is starting to catch up to what the consumer is looking for and and and that's a good thing for our industry and more importantly that's really good for the the consumer like us traveling around well look for folks that that didn't catch and I I I forget the history we actually talked in 2018 and 2021 and now today but for folks that missed those first two episodes I I feel like I feel like our 2018 conversation was I I can't really say but back when you were a baby at only quote only $10 million of of AR but um for folks that misses episodes who is cloud bed selling to today what do you guys do yes absolutely so the best way to think about it is hoteliers around the world run their entire businesses on software and that Tex stack predominantly has been 18 different systems that are inter to joined uh back in the day it was serialized cables on premise now it's all in the cloud but it's still disjointed and too many different systems connecting to one another Cloud bed slides a box across the table and say hey everything in that runs your business more effectively and so we take the the day-to-day operational side of running a hotel uh in a much more modern uh capability we do in 157 markets across two in half million beds in this world now we're the category leader for independent Hotel years and man I uh that's been a long time ago when we were 10 million in ARR and we've definitely grown since we're 7 757 people uh in 41 countries around the world now and and it's been quite the journey 757 how many people I imagine my hearo this and go is this like how much engineering is work is really needed here but 757 people how many are Engineers uh almost a third of them are thir product in engineering yeah so we spend a lot of time and energy on R&D um Nathan just to to to bring us back to 2018 we were only 40 people then oh what's going on there YouTube good to see you 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 287 interviews I've done manually saves you a lot of time well we've done this we've built it 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 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again all that valuation data live right inside the platform I hope to see you there all right let's jump back into the interview that's no that's it's it's incredible um it's incredible the growth curve there so 757 250 uh engineers now I guess when you say 2.5 million beds um what's the like I'm not quite sure the right way to ask this question but if you talk about like a building right and there's 20 beds in one building my question I'm trying to ask is how many buildings do you serve today right what's the right way to ask that question yeah you know it's different because sometimes you'll have a one unit right I might have a short-term rental that I'm I'm powering and that short-term rental might be in a building of many short-term rentals but the way I look at it is you know we have roughly 20,000 building entities around the world that are powered off our software uh give or take every single day um some of that's seasonal but yeah it's a it's quite the story for sure so what what is that up from so if you're doing 2.5 million beds today where were you caught a year ago oh man that's a great question I don't know that off the top of my head um or what would you maybe you don't use that maybe it's not number of bed but what would you say growth rate has been Cloud beds the past 12 months you know we've grown over 75% kager in the last three years so really really top core tile growth rates and that's continue to sort of maintain um knowing what the publicly traded SAS analoges are we're better and faster than all of them and we're doing it at scale so no slowing down from our our our business but we also have a uh a dark night in that story we are a fintech company just as much as we're a SAS company we've seen tremendous amount of acceleration in the ability for us to bring in financial products into our capabilities so imagine every reservation that runs through a hotel we can also do all the the the capturing of that Revenue through credit cards and wallet type uh transactions and we handle all that so what year was fintech introduced officially fintech was introduced um in our first Market 18 months ago um now in 30 markets uh within the last three weeks so big rapid expansion this past uh six months and what's the opportunity that you see there you know if you process five billion of gmv you're keeping 1% or what's the revenue upside or potential you know it's really hard to look at the take rate because every jurisdiction is is governed by different rules but it's a big Market nevertheless it's one of those things where if you look at toast as a publicly traded company or Shopify as another you know 50% of their revenue is coming from fintech Solutions I look at it as probably something similar right now it's less than 20% of our overall Revenue but it's fast growing it's multiple 100% year-over-year growth rates in that sector uh the thing that I like about it is it's incredibly sticky right every hotel in the world needs to capture revenue on behalf of their uh guest and if we can do that in a much more efficient way pre-arrival during stay create microtransaction opportunities It actually drives more revenue for our hotel um and creates a lot of opportunity for them and so we're we're just pleased that we're part of that storyline and the more and more we do the more and more we're going to give back to the hotel over time but yeah we are we we do over 10 billion dollar in gmv just in reservations within the the key markets that we serve obviously it's a much bigger number as you think about all the markets we serve but you know that's a big opportunity for us to take a little little sliver of of of value yeah when you say you sit on 10 billion of gmv is that mean you're so close to it you can count it up and add it or that's the gmv that you're also taking some economics on in other words they they've installed your flow your fintech products no so we we we see it we touch it we we see those reservations flowing through us it might be in a jurisdiction that introducing a payment processing capability is limit to a local entity so I'll give you an example uh in Costa Rica for example you need to be a licensed business to take processing you can't be a third party so there's there's ramifications of different jurisdictions around the world and so we partner in some markets and then we underwrite in others and in the US Canada Europe Australia New Zealand we actually underwrite it and now we've expanded that underwriting ability into other markets as well so very excited about that yeah no it's extremely interesting I mean um so 10 billion of gmv across 2.5 million beds that means each each bed average annualized gmv is something like four 4,000 bucks something like that is that right um yeah it's a great it's a great way of thinking about it it doesn't necessarily always equate to something that's simple because not every Hotel takes a lot of credit cards sometimes it's cash so there's actually different sort of money flow part of the world is only wallet specific Asia would be one of those examples some of them are doing it on installment like Latin America that's super popular now we see Clara and a firm becoming popular in the US so even though it's really really big it never sort of works out to be let's just do the 1% number and feel really good about I would love to be part of that 1% magic number but I don't think that's going to be the case but nevertheless there is money there but really there's money to serve our customer with we can bring value back and in the reality the reality of this is there's too many intermediaries with their hands out you know our property opportunity so the The Tam that we service today or I guess a Sam that we service today spends about $ 87 billion a year in intermediary fees $87 billion a year is our what our Sams hand over to someone else for providing value in this industry I want to find and what percent of that is total G of that is that of total Sam gmv oh I mean it is it is probably 15 to 20% of the total Sam gmv right got it so so it's a big so the the the travel industry is a trillion and a half dollars for lodging it's massive right but if booking.com is doing a 100 billion of that Airbnb Expedia doing roughly a 100 billion you have this whole wholesaler travel agent intermediary I mean you can just keep adding it up and adding it up now Google's in that foray so what we're trying to do is really fight back to bring more direct connection with our customer and that guest at the end of the day sh shave some of that 15 to 20% commissionable rate and put that back in the properties so I think I mean there's a lot of ways to make money on fintech when you sit close to payment flows the one an example dis with was travel folks or Expedia which which you know obviously if Expedia helps you find hotel they're going to take something from the hotel and exchange for giving the hotel that lead just to be clear you're helping a short-term rental in Austin Texas potentially find a lead to rent their house for next Thursday and Friday is that what you're saying yeah less short-term rental more hotel but let's say a hotel has an open bed we're trying to find that guest directly and bring them to the property owner how do how do you do that because like if I go to cloud.com I just see software like what's your equivalent of expedia.com we don't have the equivalent so what we do is we feed it into various sources so for example 62% of all origination of travel these days is happening through social media influence so using ads very targeted ads that are automated using generative AI we can place an advertisement in front of a search population that's looking for a property that could be event specific that could be I'm just looking for a property in Costa Rica it's called our amplify solution so we're not at we're not a brand not a place that you go we are just originating the way to reach the guest and then sending them right back to our our booking engine experiences or landing pages that we create on behalf of the property to help them transact and we take a very tiny tiny sliver that in comparison to what Google or excuse me what expedia booking.com would charge at 20% what's Tiny I'm sure you don't want to give an exact number what's a range like under 10 under 5% under 5% yeah so we're not trying to ni we're not trying to nickel and D we we believe that there's value there the best part about it is the Ros on all of that dollar spent with us is in the teens in terms of multiple return on on on their money spent so like giving a 13x return on every dollar they spend with us is beautiful we want to do more of that um I would love to find a money manager who I could give them a dollar and they could give me $13 back consistently right but so we figured that out we we have various ways that we're doing that in an automated manner we're going to EXP that so that's our new product that's out yeah what dollar volume of like hotel bookings will you drive through that funnel you just articulated the ad to the landing page I mean will that be a million this year 500 million a billion uh our hope is to do a billion next year through that um but we're doing millions of dollars a day now so it's it's really exciting okay so billion next year if you want that to grow 200% year-over year that means you think this year maybe you'll do 150 200 million in bookings to your clients through through this engine platform that would be the Hope um probably won't be that total because we're testing some things out and we're also giving away the software for free certain certain scenarios but nevertheless you know just in our direct booking capability we have we were the launch partner with Google which was really exciting we're doing some really cool things with Google in that area um and and we're starting to see the proof in the pudding now it's expanding it further I mean we have one of the largest populations of hotels in the world in all markets and so the data that we're sitting on is really getting us sophisticated to try to find those little sweet spots it won't work for all properties but it definitely works for most and so that's what we're trying to dial in no there's uh when you sit close to payment flows there's so many ways you can help the End customer so you this is one thing you're testing I mean but I think I think to something that I mean you read squares right uh uh 10ks and 10 q's and you read about how much they're doing on their lending platform you're uniquely positioned to protu Future catch flows on any short-term rental why not launch a lending company and make a you know 10 points of spread it's a great it's a great question and it's something that we definitely have on the road map to explore it's one of those things where that is one example of maybe 10 to 20 different sort of layers that you can continue the fact that we're looking at both sides of the Ledger and we're fully understanding what the business operational needs are um it gets really excited really quickly we should probably talk about the lending I know you uh know a few things about lending well I think the what the reason and I thing that I struggle with the most at path is actually sequencing when you sit on so much data the hard problem is not like I didn't just give you some brand new idea you never thought of you know about that idea but the hard part and who wins marketplaces it's actually what do you decide to launch first second third so it sounds like you launched this direct booking capability first there's a reason you did that like I'm curious how you think about sequencing what's number two what's number three and why the order yeah so when payments first so that we could capture the actual transaction on the micro level and then when can we drive more to those same Chann Chanel now it is that's direct booking can we now further that and bring more micro transactions during the stay to enrich the opportunity to build more Revenue capacity for the what does that mean like I buy this I buy the Snickers bar in the lobby yeah exactly and to get you to go buy the Snickers bar in the lobby or to upsell you during your originating of during your pre-arrival flow or to say hey how are we doing oh by the way Nathan what are some inces interests that you have around the area so think about think about the side of a business right you have the business side of a hotel and then you have the art the art is the experience that you feel when you're staying at a hotel the business side is just the check in the collection of payments doing the accounting and all that fiscalization so what we believe is there's two sides that we have to do incredibly well now what I want to do is bring you to the product of a market and a product of the market is all the things that sit around the property and that is very very microtransaction heavy there are many events where you're like damn it I wish I could just get a Snickers bar right now well hey if I can just text the application which I power and go hey front Des I love a Snickers bar can you run it to room 10 108 they'll be like hey Nathan no problem let me run you Snickers do you want a Pepsi also you're like yeah yeah that sounds good plus you know why don't you send up two bottles of water they just created transactions whereas most times the guest is actually leaving property to go get those things yeah and so they're losing on the 7-Eleven down the street is taking that transaction value so we're trying to bring that uh full circle in but I agree with you fintech loans um payroll capability like I have employees logging in and logging out of our application we're time tracking them every single day extending that into the ability to just hey do want us to do their payroll now I'm not trying to be a payroll company however I sit on a lot of data to enable that payroll capacity now doing that in 41 different markets around the world is incredibly challenging so this always begins to be let's look at the tip of the spear where is markets that we can make sense of it slowly roll things out but right now we're just trying to roll out universal products that benefit the largest population of hotels y 2018 you told me 9,000 customers 2021 I think you got up to 22,000 is what you told me how would you define it how many customers would you say you serve today yeah north of north of 27,000 so really good growth curve we've changed our customer our customer's got a lot bigger which we're really excited about so you had a $93 arpu in 2021 would you say that's more than doubled uh a 90 $93 per per month per customer on average significantly and that's doubled because of all the I mean I'm looking now at your drop down you have you offer way more products than you used to that's right we we are we are a full platform the platform is incredibly extendable we have upsell capability these days and then we also have a Marketplace of 400 different partners that can be introduced into the equation so this is a this is a best-in-class platform these days it's it's quite fun to see what year what year do you think you think you'll break a $100 million run rate can it be next year very much so is that feel that feels like a comfortable goal or a stretch goal for next year easy interesting and where are you guys at today oh I can't say that right now for a couple reasons but we we are very close to that magic number that you just talked about can can you say your North you told me this VI email but I don't want to say it because you didn't give me permission can you say what you're north of today uh why don't you give me some ranges and I'll nod are you north of 50 million today very much so there we go okay so we'll see what happens as you move into next year Adam let's wrap up here with the famous five number one favorite book uh Atomic habits number two is there a CEO you're following or studying oo right now Yik Jeff weer still but he's not a CEO anymore that's okay still a good Le number three favorite online tool for building Cloud beds favorite online tool for building Cloud beds something you use a lot just run the business uh you know I'm really having a blast with chat GPT open AI yep number four how many hours of sleep do you get every night seven and situation married single kids married two kids under four so brutal brutal period of time busy guy got a teenager Cloud bets how how old are you I'm 42 last question something you wish you knew when you were 20 oh my God there's two sides of the coin yeah so either do or you don't either way you're right and so it's better to be doing I love that guys Cloud beds launched many years ago broke 10 million of Revenue back in 2018 today over 2.5 million beds across 27,000 paying customers use them not just to manage the bed and the check-ins but now getting into fintech he's got 75% ker over the last three years north of $50 million of Revenue he says quote easily $100 million next year we'll see what happens Adam thank you for taking us to the top one more thing before you go we have a brand new show every Thursday at 1 p.m. central it's called Shark Tank for SAS we call it deal or bust one founder comes on three hungry buyers they try and do a deal live and the founder shares backend dashboards their expenses their revenue arpu CAC LTV you name it they share it and the buyers try and make a deal live it is fun to watch every Thursday 1:00 p.m. Central additionally remember these recorded founder interviews go live we release them here on YouTube every day at 2 p.m. central to make sure you don't miss any of that make sure you click the Subscribe button below here on YouTube the big red button and then click the little bell notification to make sure you get notifications when we do go live I wouldn't want you to miss breaking news in the SAS World whether it's an acquisition a big fund raise a big sale a big profitability statement or something else I don't want you to miss it additionally if you want to take this conversation deeper and further we have by far the largest private slack Community for B2B SAS Founders you want to get in there we've probably talked about your tool if you're running a company or your firm if you're investing you can go in there and quickly search and see what people are saying sign up for that at Nathan la.com forward SLS slack in the meantime I'm hanging out with you here on YouTube I'll be in the comments for the next 30 minutes feel free to let me know what you thought about this episode and if you enjoyed it click the thumbs up we get a lot of haters that are mad at how aggressive I am on these shows but I do it so that we can all learn we have to counter those people we got to push them away click the thumbs up below to counter them and know that I appreciate your 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hello everyone my guest today is Adam Harris he's the co-founder and CEO of cloudbeds together with his co-founder Richard Castle they've led cloudbeds from a small group to a small store up to an award-winning company that powers tens of thousands of hospitality properties in over 135 countries Adam started his career as an investment banker until as though of entrepreneurship and trouble pulled him in from Wall Street the most remote corners of the planet his many years of experience in consulting don't and sold multiple companies and has traveled to more than 51 countries all over the course of his career Adam are you ready to take us to the top let's do it all right man so I was joking with you before the call I said you know I came across cloud beds cuz I invest in a bunch of hostels and they all said we use cloud beds so tell us what you do and how do you make money is it if your place ask company your place ask company yeah so we build b2b software for the hotel industry so everything from hotels motels the boat Elle's adventure travel hostels as well as property management companies use our software around the world and ultimately what we do is everything that you experience as a consumer so when you walk into a property you check in that software behind the front desk is are so back office front office as well as some of the e-commerce components our goal is to help cast the widest net possible so that our properties who are powered off our system can ultimately find guests like you around the world and so we work with partners like Airbnb and booking.com Expedia all those really popular consumer point of sales and that all feeds directly into our system and give me a general sense you know no I don't wanna go down every cohort you know the motel versus the Botelho versus the hostel but on average what's the customer pay you per month would you say oh man it's a little it's a little unique because we do it on a geographic basis so the way we ultimately price is property type Geographics and then the number of units so we've we have properties paying us you know thousands of dollars a month and we have properties paying is 25 so it's a really big range to be honest with you interesting can you maybe just squat and not the price when we describe the average of the average might be you know a 12-bed unit you know that kind of thing yeah in north america it's probably around 200 and some change per month on and on an average basis and then europe might be right around that as in parts of Asia might be much less this is interesting okay I wanna put this on a timeline and understand how a guy who's on Wall Street gets into this business so when did you when did you launch the company what year so we we officially launched the company in October of 2012 we actually didn't become commercial till 2014 we actually had a little bit of a pivot in 2013 that we can talk about but for the most part we actually launched cloudbeds the software that is today in 2014 okay so yeah tell me about that what did you launch as and how much money to do waste before realizing you got a pivot yeah so we wasted a little over a million bucks in our first sort of seed capital and and to be honest with that a wasted is probably a really strong word we learned from our mistakes how about that Adam that's a spin if I ever heard one no you know when we first started we wanted to build opentable for travel right we saw all these small independent properties all over around the world who were using forms to submit for a reservation request like hey I want to come travel on these days and let me see whether or not availability that exchange wasn't real time there wasn't a place where I could just take a widget select my date see if availability was there and confirm and purchase just like opentable did for us for restaurant reservations and that was the original catalyst when we went to Brazil which is actually where we launched there was the FIFA World Cup coming into the country which meant all this inbound consumer traffic that Brazil had never experienced six million people were going to visit in Brazil for the first time when their average annual is less than two million so lots and lots of demand not enough supply that was readily available and so we thought why not make all that supply all those small properties all over that country be booked able immediately and in real time and so what we realized is it was almost impossible to take those those rooms that were available and put them online without intermediary software or a lot of phone calls and so the model had to be more be to see originally and then we realize that without the b2b platform that we could leverage we pivoted into a soft SAS company and so we originally were going to be B to C and then we realized that wasn't possible in Brazil became a b2b you know company in the rest is history that's interesting were you living in Brazil or you visited there and just set out we want to launch here um we had a third founder early in the day who's no longer with us um rich my co-founder he he married a Brazilian and so he was actually living in Sao Paulo and spent some time in in in country so actually he lived there for three years so he was sort of running our Brazilian or Latin American office and I obviously visited quite often but Brazil there was justice connections that we had to the country we had some you know really good tourist connections and ultimately that catalyst with the World Cup made a lot of sense early on a lot of the you know the Central American or South American companies I interview in the SAS space this is the biggest challenge honestly is just like dealing with the late DOS right like there's not there's just not an easy way to do it so like how did you if I mean that's crazy to me that you you know the stripe is not just like you know connect a stripe API call in an interface you have to deal with someone's physical tickets how did you deal with that in your early days so we actually opened a company in Brazil so we have a legitimate Brazilian entity that we formed founded and continued to operate as a cost center and that took what normally would you go to you know Delaware Inc and you can create a Delaware company in 24 hours it took like six weeks just do paperwork and then once six weeks occurred it was another six weeks and then another six weeks so when I when I said we rigidly launched in 2012 we probably didn't do anything productive in country for at least six months and that's sort of the average and remind me again sorry initial capital company was how much so the initial capital was 800,000 and then it grew slightly to about 1.2 million okay and total raised to date is what 21 million 21 okay so when did you raise a second round did you wait till you add some new traction on the new product or what yeah so we we pivoted we actually almost you know went bankrupt twice so we had less than three months of runway and we raised it at the end of 2014 when we actually could show our new product and we started get some traction had a couple hundred customers at that time we actually surfaced an acquisition or first act that made a lot of sense to the business which was it is called my allocator it's a channel manager and it was a two-person team had a you know a couple hundred customers at the time but we unlock a tremendous amount of value with that purchase and so between our new product in this acquisition we brought it together raised two and a half million dollars from a really polished team of professional angels who also had hospitality experience and what was fun about that was one of the leads actually spent about twenty five million dollars doing what we did for over a course of five years we did the exact same thing in six months and showed him that we could do it in six months so build the same text back that twenty five million dollars that a big you know billion dollar organization can do and he was like this is impressive what here's some here's some cash to go do this on the real it's great so a couple hundred customer in twenty fourteen gave you enough leverage to kind of do the next round of funding show some impressive growth to be folks that try to do in the past what yet today in terms of total customers north of twenty two thousand properties use cloud beds and 135 countries so we we are moving about you know five billion dollars and growth you know merchandising value so room sells on behalf of our properties annually or monthly annually yeah that's a significant number and is there are all this 22,000 paying or you have a free plan no so we a lot of times we have a customers who are are have multiple properties and so you know we have over nine thousand paying entities and then they can have one or more properties underneath them interesting and you just will increase obviously the fees if they're you're paying based off number of properties they have over you absolutely okay now can I take those nine thousand logos times now this was the North American number you said was two hundred bucks on average average revenue per customer by multiplied two hundred times nine grand it puts yet about called one point eight million bucks a month in revenues I generally accurate nope it's so that's that's where the the wide variety is will be north of you know we're gonna finish this year extremely strong with you know north of eighty percent growth year over year will be an eighth bigger range so slightly less that's good that's good so so eight figure range so you you this year is the year you break the 10 million mark or you've already broken the 10 million mark on a run rate basis we will we were just about to break that mark you that that that's one you all go to Brazil to your original location the first sign up on the platform you buy the whole place out and you celebrate right we celebrated yesterday we were ranked number 75 on the Inc 500 list so we were very very fast growth and that was a huge milestone for the company but yeah that's great well congratulations an 80 percent year-over-year growth if you're doing call it 800 grand per month right now that means you know a year ago you were doing maybe about 500 grand in August of 2017 per month a little bit less than that be a toast those are those are close it's great now how much you mentioned earlier there's a transaction part of your business five billion in transactions while I'm going through your platform how much of your revenue on top of the sass revenue is from that transaction volume zero okay you don't take a cut no yeah I know where Commission for you were one of the unique products out there that is commissioned free at this time and what we believe that we are that we are the solution set to serve in power we don't need to be you know benefiting from the hard work that these property owners have to do that's interesting I have to I have to tell you I could have sworn when I looked at the last round of investor updates from my hostel there was like a five or six percent cut somebody was taking and they said we're trying to put less bookings through them because they take so much but what you're saying it wasn't me wasn't you guys it was enough all right somebody else all right very good talk to you about churn I imagine you probably have some nice a nice little of stickiness once you're actually out there on our property but what does term look like today and how do you manage it yeah so turn we cut it three different ways right you sort of have this trial customer that's sort of flirting with the product isn't quite committed for a long-term solution this doesn't happen very often we keep our customers at least from a long-term value perspective over five years that's what we project and that gives us a tremendous amount of economics to sort of work with over time what what we like about turn is you sort of the trial customer use a long term cohorts on a net and a gross basis we're best-in-class for SMB software solution so depending on the month it ranges but on a net basis we're sub fifteen and that's growing in the right direction we've lent even an S right sub 15% that's that's local attorney yeah annualized yeah into what we're what we're focused on right now is over the next 20 months is to try to get that either into a positive basis with upsells which we don't currently do or on a gross basis to you know be sub 10% and the problem with SMBs is SMB shut down so on average 35 percent of all SMBs will shut down in a given year and so there's a portion of marking of our turn that we just can't control tak what's the question on board a new property about eight hundred and seven dollars and and where's that most I'm gonna go sales and marketing oh just your team yeah okay interesting what's your team today how many people so last time it's a lot a little bit before this point last year we were about sixty people and we're at a hundred ninety seven people today one day said oh wow when was last round of funding fourteen months ago okay so you used a lot of edge drive that growth mmm yes 800 $7.00 kak at least in North America if you've got people paying 200 bucks a month you're getting paid back in about four months is that a bit sound accurate yeah so if you took an average across our entire Gio's it's more like ten months but it's it's a good figure that's still enough we pay back either way we're best-in-class in our unit economically the extremely scalable model we have cost centers that help us compete localized and rich and I are all about a factory over here it's good 197 are they all based in San Diego or where's everyone no so 35 different countries we speak 17 different languages as a team everyone wants us remote that you have no office will fully remote I mean I'm actually in a physical office but yeah we have four four offices Kiev Dublin Sao Paulo and San Diego and then we have people in 35 other countries where we love remote we are huge advocates of it and that's how we're how we're in building not only our staff of building a pretty incredible culture over here if I am an investor big private equity firm let's let's say Sam Zell right one of the most famous property investors ever and I'm going the economy right now is frothy I'm gonna hoard cash wait till a downturn and then buy like crazy I'm looking at a company like cloudbeds going wow if I acquire cloudbeds I can essentially see which pieces of property are doing the best because you have all the revenue data and next downturn I can really buy quick why hasn't a guy like Sam Zell or kind of a big p/e from coming and bought this for a ridiculous multiple oh I am we I can't say we haven't had those looks and we definitely been offered some ridiculous multiples today you know there's other products like err DNA which does a sort of Airbnb revenue models be a awesome person to bring on your company because all bootstrap crushing it and they've basically mapped the entire ecosystem of Airbnb in the demand from into a financial product and so I think from from our perspective the what's interesting is the traditional investment on a hotel basis it's shifting most of the investments are going into sort of experience driven travel so you talked about your investment in hostels hostels are seeing more money poured into them than ever before yeah you have these sort of surf sand and snow type accommodations where it's bringing bands in like Salinas which is a huge hospital chain in Latin America they're trying to reinvigorate the experience and change the name the footprint of what a hostel is hostels tend to be grungy and college students well there's some ones in Europe that are absolutely spectacular star properties the metrics aren't crediting all my hostel investments when you look at the hours revenue per square foot it's three or four times what a Marriott and these other ones are getting and these are not like grungy I mean these are like these are like really really I stay at some of them when I travel it's like 30 bucks a bed it's a it's a different type of it's a different type of experience today versus at what it was in the past yeah that's gonna keep evolving so there is the private equity side but then I you know I'm looking at your Twitter feed August day if you have a big announcement about integration with air B&B if I'm air B&B I'm going this is like makes 100 million percent sense to acquire you guys why haven't you still do an Expedia or an air B&B and how do you think about acquisition in general we're having a lot of fun right so it's it's a there's a given to take right so when you give up and you are now part of a bigger story it changes your life hopefully for forever in a good way but it also can be in a bad way and so it's not just the financial game from an acquisition that's also fit my team has to go somewhere and they have to be comfortable with where they go and so we we've obvious had conversations with a lot of the strategic buyers and I think what's fun about that is there's never the perfect time to do it but then there's also always the opportunity to do it in the future what we're focused on right now is just keep building our financial profile as an organization and then also create environments where our team is successful in that balance has produced amazing results and if someone offers us a ridiculous multiple sure I might be the first person to sign that document but at this time we're just focused on keep building we're having a lot of fun over here are you raising any capital right now yeah we're always raising you know we're always looking at what's out there we're always talking to big groups you know for us we're a really healthy cash position we don't need to raise it would be to raise for a benefit of some you know acquisition that we wanted to do or a strategic purchase of software whatever that might be we haven't really determined what that looks like right now so we're playing playing the game where we don't need to raise and so we're gonna keep you know in a really good pole position and based off how much you've raised now recently did I assume you're not cashflow positive today correct we're not no we're focused on you know investing in areas that we see growth in and we've deliberately not be not become cashflow positive but we have a roadmap to get there right if you if you take net burn today and divide that into cash in the bank today I mean do you generally have more than a 12-month runway ahead of you oh absolutely yeah okay that's nice good last question RV parks - RV parks use you guys we have a few actually and we're starting to expand into that a lot of campgrounds are coming to us a lot of these glamping you know environments that are now the new you know new rage so we have two of them you know - the biggest ones that are powered off us collective retreats is an incredible brand that's doing some really fun things there that is powered off cloud beds and absolutely loves the outdoor adventure type travel that's one of my favorite spaces I'm a huge fisherman for me so anything I can do that's related to like fishing camps or hunting lodges or things like that I'm all for and and I'd like that we would actually joke as a management team that we want to hire just one salesperson just focused on places that we can go play on our off time yeah that makes a lot of sense last question you guys out for retargeting products so that if I know that Adam eris went fishing in wyoming at a glam site that I should you know upsell him on the same thing and the middle of Europe you know in the next summer you know it's interesting we don't we do not bring data together across properties we're really focused on individualizing it that's that's not only a privacy issue there's a lot of data changes in laws that have been brought to our attention I'm sure you've got bombarded with all those gdpr announcements that took place that's a really interesting product and it's something that we've definitely thought about knowing your customer is huge in in any industry and especially on a travel and inexperienced basis properties that do have multiple properties across multiple gos you can obviously share their data you know Adam we're out of time let's wrap up quickly with the famous five number one what's your favorite business book favorite business book neuromarketing number two is there a CEO you're following or studying right now love the educational series that Jeff Winer from LinkedIn has in Linda number three what's your favorite online tool for building your business a new sales product called groov app it's incredible number four how many hours of sleep to get every night ranges but I try to do at least six that's good in which the situation married single kids married to dog two dogs all right and how old are you 36 36 last question what do you wish your 20 year old self knew I wish I had taken a job worked abroad and lived abroad guys there you have it you know take a job lived abroad done more stuff abroad it sounds like he's kind of by curiously doing that now fully remote team which I love building cloud beds launched it back in caught 2012 kind of had an early failure then pivoted a hence scaled nicely over 9,000 property owners use him to manage check-ins and even processing payments that's across 22,000 properties they're about to pass or just passed about 10 million bucks in terms of annual run right economics healthy less than 15% annual logo turn on a net basis spending 800 bucks to acquire our customer across their entire base geographically about a 10 month payback period again super healthy 21 million bucks raised team of 197 people totally remote Adam thank you so much for taking us to the top loves having a conversation thanks Nathan have a great day bud