DevHeads Revenue (2023)

DevHeads recorded its first revenue in July 2023, the same month the interview took place. The company had approximately 41 active contracts at the time of the interview, consisting of roughly 40 website builds priced at $250 each and one school district contract under negotiation targeting the $10,000 range.

DevHeads had approximately 41 contracts at the time of the July 2023 interview, including roughly 40 website clients and one school district. Website builds are priced at $250 per site. The recurring hosting and maintenance service is priced at $40 per month per client.

The school district contract, described as the company's anchor client, was still under negotiation at the time of recording, with the founders targeting a price in the $10,000 range for the initial alumni-to-student connection software deployment. The long-term target price per high school for that platform is $40,000 to $50,000, with 960 high schools in Missouri identified as the addressable market.

Pricing for the hosting service was described as an all-in managed service covering virus protection, domain maintenance, daily speed and performance checks, and software sourcing, positioning DevHeads as an outsourced IT team for small local businesses. Customer count beyond the 41 contracts was not discussed.

DevHeads operates two revenue streams. The first is project-based: one-time website builds at $250 per site and custom software projects such as the school district alumni connection platform. The second is recurring: a $40 per month hosting and managed services fee charged to each website client.

Kadima acknowledged to Latka that the hosting margin is compressed, noting that roughly $10 to $20 of each $40 hosting fee goes to the underlying host provider, making it closer to a cost-of-goods-sold line than a pure software margin. The founders described the school district software as the path to higher-margin, scalable recurring revenue, with a target price of $40,000 to $50,000 per high school and 960 high schools in Missouri as the stated addressable market.

Profitability was not discussed in the interview. Gross margin, churn, LTV, CAC, burn rate, and runway beyond the $15,000 in combined founder savings were not disclosed.

DevHeads had three team members at the time of the July 2023 interview: co-founders Fortuna Kadima and Kobe, plus a third member named Brandon who handles advertising and marketing. Brandon was not present for the interview and holds no equity in the company.

Both founders were still employed at outside day jobs paying $30,000 per year each at the time of recording and planned to transition to DevHeads full-time within weeks of the interview date.