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...