Coralogix Revenue, Valuation & Funding (2024)

Coralogix recorded its first dollar of revenue in October 2017, after operating for roughly three years with no customers and no revenue. The company ended 2018 with just over $1 million in annual revenue. By mid-2019, annualized revenue stood at approximately $1.4 million, and the company closed 2019 at a $2.8 million run rate.

Coralogix had more than 2,000 paying customers as of October 2021. Among its top 100 accounts, the average contract value was approximately $80,000 to $85,000 per year. The company had 25 accounts exceeding $100,000 in annual contract value, five accounts exceeding $500,000, and one account paying $1 million per year.

The security product, launched separately from the core observability platform, had five customers at the time of the interview, two of which Assaraf described as among the largest companies in the world. Pricing was not broken out by tier or seat in the interview. Assaraf noted that many customers start on a zero-touch basis and expand over time as data volumes grow and as they add additional product modules including metrics, security, and tracing.

Coralogix operates as a SaaS business, with customers paying based on the volume of data they ingest and the product modules they use. There are no professional services fees on the current observability platform. A consulting component is being introduced alongside the new security product, structured as an included benefit for customers purchasing above a certain data threshold rather than a separately billed service.

Net dollar retention was 130 percent for the year to date as of October 2021. Gross logo churn was less than 2 percent for the same period. The expansion component of NDR was approximately 32 percent, driven by data volume growth and cross-sell of additional modules including metrics and security. Assaraf attributed the low churn to the stickiness of observability data and the platform's ability to reduce customer costs through data prioritization, which he said makes Coralogix part of a customer's unit economics rather than a discretionary tool.

Profitability was not discussed in the interview. Burn rate and runway were not disclosed, though Assaraf said the company had a runway sufficient for a company larger than its current size and did not expect to raise again for at least five to six months. Revenue per employee at the time of the interview was approximately $120,000 on a $12 million ARR base across 100 employees, though the host cited a forward-looking figure of $240,000 per employee using the near-doubled run rate, which Assaraf did not confirm.

Coralogix reached exactly 100 employees at the time of the October 2021 interview. Engineering was the largest functional group, with approximately 70 engineers on staff. The company had eight employees roughly two and a half years earlier, in mid-2019, and five employees at its lowest point at the end of 2017. Assaraf said he expected the company to cross 200 employees within a year of the interview date.