Doerz Revenue, Valuation & Funding (2023)

Doerz reported annual recurring revenue of €92,000 as of late 2021, equivalent to approximately €7,500 per month in monthly recurring revenue. Virtanen told Latka that revenue roughly doubled from the prior year, with the company sitting at approximately half that figure twelve months earlier, implying revenue of roughly €45,000 to €46,000 in 2020, consistent with the $45,000 figure from 2020 in the extraction data. The company stated it tripled revenue two years in a row before the interview period and was on track to double revenue in 2021.

Doerz had 40 paying city customers as of late 2021, with 80 to 90 cities using the platform in total including non-paying users. The platform also hosted more than 1,250 experience providers. On the consumer side, the platform served up to 10,000 monthly users during peak season, with more than 2,300 consumers completing bookings in July 2021 alone.

Paying city customers, described as city-owned tourism or visit organizations, paid €249 per month at the time of the interview. Virtanen said the company was about to raise that price to €450 per month. The average consumer booking value was approximately €50, while the average price of a single experience sold on the platform was approximately €25, suggesting consumers typically purchased roughly two experiences per booking.

Doerz generates revenue through three streams: SaaS subscription fees from city tourism organizations, commissions on activity sales made through the marketplace, and additional services such as workshops, marketing campaigns, and online contests sold to city customers. SaaS license fees and subscriptions accounted for 90% to 95% of total revenue as of 2021, making it the dominant revenue driver by a wide margin.

The commission rate on activity sales ranges from 5% to 20% depending on location. Applied to the July 2021 gross merchandise value of €115,000, that commission range implies platform revenue from activity sales of roughly €5,750 to €23,000 in that month alone, though Virtanen did not state a blended commission rate or a monthly commission revenue figure explicitly. The SaaS subscription price was €249 per month per city customer at the time of the interview, with a planned increase to €450 per month. With 40 paying customers at €249, implied monthly SaaS revenue is approximately €9,960, broadly consistent with the stated €7,500 monthly recurring revenue figure given variability in contract timing.

Profitability, gross margin, churn, LTV, CAC, and burn rate were not discussed in the interview.

Doerz had a team of seven people as of late 2021, all based in Finland and working remotely across several locations. Of the seven, only one was an engineer, described by Virtanen as a tech lead capable of full-stack development. The company outsourced portions of front-end coding and other technical work. The remaining team members were described as tourism and travel professionals.