Interview
How E-Days Absence Management Reached $3.5M ARR and 1,400 Customers with 45% EBITDA Margin (Interview with Steve Arnold)
- Interview Date
- January 14, 2019
- Interviewee
- Steve ArnoldCEO
Company Metrics at Interview Time
ARR (2019)
$3.5M
Customers (2019)
1,400
EBITDA Margin (2019)
45%
ARR Growth (2019)
30%
Net Revenue Retention (2019)
105%
Historical Snapshot
These numbers were reported by Steve Arnold during the interview recorded in January 2019 and are a historical snapshot, not current figures. See E-Days Absence Management’s current numbers.
Key Takeaways
- 01E-Days had 1,400 customers as of January 2019; it took about nine to ten years to reach 1,000, and it signed up another 330 or so in the prior twelve months
- 02ARR was £2.7M, which Steve Arnold converted to approximately $3.5M
- 03Average customer had about 150 employees and paid about $200 per month
- 04ARR grew approximately 30% over the prior twelve months
- 05EBITDA margin was 45%, equating to roughly £1M per year in profit
- 06Gross logo churn was 8% annually; revenue churn was described as significantly lower
- 07Net revenue retention was approximately 105%
- 08Customer acquisition cost was just below $2,000, with an 8.5-month payback period
- 09In a November 2017 management buyout backed by private equity, Steve's team raised about 10 million (currency not stated) to buy out the two partners who held 80% of the company; the private-equity firm owned about 60% at the time of the interview
- 10The team was 30 people based in Nottingham, England, with 6 sales reps and a newly hired CRO
Company Metrics at Time of Interview
| Metric | Value | Source |
|---|---|---|
| ARR (2019) | $3.5M | Interview, Jan 2019 |
| Recurring Revenue (GBP) (2019) | £2.7M | Interview, Jan 2019 |
| Customers (2019) | 1,400 | Interview, Jan 2019 |
| Average Revenue per Customer (2019) | About $200 per month (average customer, about 150 employees) | Interview, Jan 2019 |
| ARR Growth (2019) | 30% | Interview, Jan 2019 |
| Gross Logo Churn (2019) | 8% a year | Interview, Jan 2019 |
| Net Revenue Retention (2019) | 105% | Interview, Jan 2019 |
| EBITDA (2019) | £1M | Interview, Jan 2019 |
| EBITDA Margin (2019) | 45% | Interview, Jan 2019 |
| CAC (2019) | Just below $2,000 | Interview, Jan 2019 |
| CAC Payback Period (2019) | 8.5 months | Interview, Jan 2019 |
| LTV (five-year average) (2019) | About 6.5x CAC | Interview, Jan 2019 |
| Sales Reps (2019) | 6 | Interview, Jan 2019 |
| Team Size (2019) | 30 | Interview, Jan 2019 |
| Monthly Inbound Inquiries (2019) | 100 to 120 | Interview, Jan 2019 |
| Lead-to-Customer Conversion Rate (2019) | 25% | Interview, Jan 2019 |
| Demo-to-Customer Conversion Rate (2019) | 50% | Interview, Jan 2019 |
| US Customers (2019) | About 60 | Interview, Jan 2019 |
| Private Equity Raise for Partner Buyout (Nov 2017) | About 10 million (currency not stated) | Interview, Jan 2019 |
| Year Founded | 2007 | Interview, Jan 2019 |
Growth Breakdown
Revenue
At the time of the interview, E-Days had £2.7M in recurring revenue, which Steve Arnold converted to approximately $3.5M ARR. Steve said ARR had grown about 30% over the prior twelve months.
Customers
E-Days had 1,400 customers in January 2019, having added roughly 330 customers over the prior twelve months. Growth was slow at first because e-days was incubated inside a parent company whose own business was the focus, and it took about nine to ten years to reach its first 1,000 customers.
Team
The team was 30 people, all based in one office in Nottingham, England. The company had just hired its first Chief Revenue Officer, whose mandate was to grow the sales team from 6 to about 20 people and build out an outbound SDR function.
Profitability and Funding
E-Days was profitable at a 45% EBITDA margin, generating approximately £1M per year to the bottom line. In a November 2017 management buyout backed by private equity, Steve's team raised about 10 million (currency not stated) to buy out the two partners who held 80% of the company, and at the time of the interview the private-equity firm owned about 60%. E-Days had raised no other outside capital, and Steve said venture debt was "not at this stage".
Growth Strategy
Organic SEO and Paid Search
The primary demand generation channel was digital marketing, combining SEO and pay-per-click advertising. This drove 100 to 120 inbound inquiries per month, of which 25% converted to customers.
Structured Demo-Led Sales Process
Once an inquiry came in, the sales team aimed to follow up by phone while the prospect was still on the website, then move them to a 40-minute online screen-share demo. Fifty percent of prospects who saw a demo went on to sign up.
Trial System with Active Follow-Up
After the demo, prospects received access to a branded trial system loaded with sample data. The sales team sent targeted emails and made direct contact during the trial week to drive activation and conversion.
Value-Added Reseller Partnerships
E-Days was beginning to build a partner channel at the time of the interview. A large talent management solutions provider was selling E-Days as a partner HR solution.
Upsell and Expansion Revenue
Net revenue retention of 105% was driven by expansion within existing accounts, even though the company had not yet built a formal upsell product suite. Steve Arnold noted that widening the application to add more upsell routes was a near-term priority.
Best Quotes
“An average customer has got about a 150 employees and they're paid about $200 per month.”
“So our recurring revenue is £2,700,000.”
“About $3,500,000, I think. Yeah.”
“Yeah. Actually, the numbers that you stated are probably a little bit inflated. It's more about our ARR has grown about 30% over the last twelve months.”
“We're profitable. Yeah, we're profitable. ... This is a different situation from a lot of The US companies... With UK companies, often, you've got more of an eye on that profitability. We're about 45% EBITDA margin.”
“Yes, it's about a million pounds a year.”
“If we're looking at logos churning, a lot of those customers that leave are those little companies that don't actually make that much of an impact.”
“It's about a 105%, a 106%. ... But what we haven't had up to date is anything additional to sell to our customers. Now we're starting to widen the application so we can actually start putting more through the upsell route.”
“Our average cost of acquisition in dollars is just below $2,000”
“Eight and a half months is how I calculate the payback. Lifetime value is really strong on e-days. Companies seem to just stick on board for a long time. Choose a five year LTV average to calculate our lifetime value.”
What Happened Next
At the time of this interview in January 2019, E-Days Absence Management had 1,400 customers, $3.5M ARR, and a 45% EBITDA margin, with plans to expand its sales team and pursue US growth. Steve Arnold had recently hired the company's first Chief Revenue Officer and was beginning to build a reseller partner channel. This page is a point-in-time snapshot of what the company reported during the recording. Visit the E-Days Absence Management profile on GetLatka for the most current available data.
View E-Days Absence Management’s current profile and metricsFull Transcript
Chapters
- 0:01Introduction and Company Overview
- 0:23Steve Arnold's Background and Role at E-Days
- 1:02Product and Business Model
- 1:49Pricing and Average Revenue per Customer
- 2:27Company History: Spin-Out and Buyout
- 3:22Customer Count and Revenue Run Rate
- 5:11Growth Channels and Sales Process
- 7:32Capital History and Private Equity Raise
- 9:20Team Size and CRO Hire
- 10:09Profitability and EBITDA Margin
- 11:01Churn and Net Revenue Retention
- 12:26CAC, Payback Period and LTV
- 13:29US Expansion Plans
- 14:16Famous Five Rapid-Fire Questions
Introduction and Company Overview
Nathan Latka
00:01Hello everyone. My guest today is Steve Arnold. He's been working with a team growing it fast around this company called e-days, an absence management software. Leading the commercialization and growth of their award winning global employee leave tracking and absence management solution. He led them from startup phase to their current market leading position in securing private equity backing to further accelerate the growth. Steve, you ready to take us to the top?
Steve Arnold
00:22Yeah. Let's do it.
Steve Arnold's Background and Role at E-Days
Nathan Latka
00:23Alright. So just to be clear, are you... Is this your baby? Did you found the company or you joined later?
Steve Arnold
00:27Yeah, I joined and a friend of mine had a company that was specialized as a web agency and I joined him in order to grow that company and then we started e-days as a product within that company. So I've been with e-days from the start although there was pre existing company within which we incubated the product.
Nathan Latka
00:45So what what was day one for e-days? What year?
Steve Arnold
00:482007.
Nathan Latka
00:50Okay. 2007. Now today it's it's its own private company?
Steve Arnold
00:53Yeah. Yeah. We carved it out in March 2016 as its own legal entity, but we'd run it as a separate company division within this other parent company that we had at the time.
Product and Business Model
Nathan Latka
01:02Okay. Let's talk more about that later, but first give us like product context. What's the company doing? How do you make money?
Steve Arnold
01:07Yeah, sure. So we're a specialist HR solution focused on absence management. That's leave tracking and absence management. It's a business solution in terms of how we make money. It's a subscription model, so it's per person per year fee or per month fee but we bill annually upfront. The value proposition is really it helps companies be super efficient in this area which most companies need to run some sort of process to manage employee leave and time off
01:35an absence. E-days does that really well. Helps them be compliant to the local rules. It's used globally so it can be customized for different parts of a different company based on what requirements it might have. And if used properly, it will reduce the absenteeism within a company.
Pricing and Average Revenue per Customer
Nathan Latka
01:49Steve, is this more kind of enterprise level? What's the average company paying you per month for this?
Steve Arnold
01:53Well, it's a real range. So we've got some companies that are paying us as little as $50 to 100 dollars per month for the system, but we've also got a larger, mid market enterprise, I'd call them companies that are paying $6.57000 dollars per month. I'm using the numbers in dollars rather than pounds to make it easier.
Nathan Latka
02:12Thanks
02:14for doing that. Yeah, so just because we don't have time to go on every cohort, mean so what would you say a fair average is? If you look across your entire base right now, a thousand a month or what?
Steve Arnold
02:21An average an average customer has got about a 150 employees and they're paid about $200 per month.
Company History: Spin-Out and Buyout
Nathan Latka
02:27Okay. 200 per month and a 100 and So 50 you're really only charging like a dollar 20, a dollar 10 per employee, something like that?
Steve Arnold
02:27Yeah.
Nathan Latka
02:27Interesting. Okay. Very good. So launched in 2007, spun it out in 2016. Walk me through that process. Is the parent company on the cap table of the new entity?
Steve Arnold
02:42No. No. So we... In in March 2016, I basically sold my interest in the other company which I had negotiated with the founder of that company. I sold my interest in that and just retained e-days. The other partner that I had at the time, the founder of the parent company came with us to the new business, the e-days absence management system company. And then I bought him out in November 2017 with private equity backing. The previous
03:15company is no longer on the scene.
Nathan Latka
03:16Okay. Interesting. Alright. And so over that time period from 2007 all the way up to today, how many customers have you scaled to?
Customer Count and Revenue Run Rate
Steve Arnold
03:22We got 1,400 customers now.
Nathan Latka
03:24Okay. And is there a free plan or no?
Steve Arnold
03:27No free plan.
Nathan Latka
03:27Okay.
03:28So 1,400 at $200 a month, do know, $280,000 a month in revenue?
Steve Arnold
03:31Yeah.
Nathan Latka
03:32Okay. And where were you exactly a year ago so we understand growth rate?
Steve Arnold
03:35So it was quite slow to begin with because we were incubating e-days within this other parent company and our focus really was on the other company at the time because that was the one that was making us the money. We didn't get any outside investment to fund e-days so it was all organically funded. It was quite slow to begin It took us about ten years or nine to ten years to get to a thousand
03:53customers. And then over the last twelve months, we've signed up another 330-odd customers and added about
04:02dollar value about £600,000 worth of recurring revenue of business over the last twelve months.
Nathan Latka
04:08Okay. So again, if you're doing today $280,000 per month, what were you doing a year ago? Was it $200,000 a month or what?
Steve Arnold
04:16Yeah. It would have been about that. I'm I'm trying to I'm trying to use the... Convert to dollars again. So yeah, it would have been about that amount that you say.
Nathan Latka
04:23So so that would have been about a £180,000 per month?
Steve Arnold
04:23Yeah. Something like that.
Nathan Latka
04:23Okay, good. So not doubling year over year but call it maybe 40%, 50% year over year growth is kind of where you're at today?
Steve Arnold
04:34Yeah. Actually, the numbers that you stated are probably a little bit inflated. It's more about our ARR has grown about 30% over the last twelve months.
Nathan Latka
04:41Okay. And so where are you today in terms of run rate?
Steve Arnold
04:45So our recurring revenue is £2,700,000.
Nathan Latka
04:50Okay. Two... So we'll call about... That's about $3,000,000, right, divided by twelve months. Yeah.
Steve Arnold
04:54About $3,500,000, I think. Yeah.
Nathan Latka
04:54Got it.
04:57Good. So yeah. That's that's about... Oh, three and a half. Yeah. Yeah. Yeah. You're right. Yeah. So about... So I was right about $280,000 per month in revenue and then that's up from you said 30%. So maybe you were doing about what's it like $230,000 a month a year ago, something like that?
Steve Arnold
05:10That sounds about right.
Growth Channels and Sales Process
Nathan Latka
05:11Yeah. Where is most of the growth coming from? What's the growth channel you're using?
Steve Arnold
05:14So our direct market model is all fueled by digital marketing. So we've got SEO, pay per click strategies to get people to our website. We get about 100 to 120 inquiries per month. There's a bit of seasonality in there based on the months where we're a little bit busier sometimes towards the end of the calendar years and the beginning of calendar years. So we get these inquiries coming in and we convert 25% of those to customers.
05:43That's our metric that we've kept pretty consistent.
Nathan Latka
05:46Okay. So what do you do? Walk me through the process. A 120 new leads come in every single month. What's the next step between that and then writing a check or paying you for the first month?
Steve Arnold
05:54Yeah. Sure. So we've got a team of six sales guys at the moment. They're split into enterprise and SMEs. Enterprise for us is kind of a mid market company, anything up from 500 people up to maybe 25,000 people. A large company has got 25,000. So we split the teams between SME and this enterprise mid market side because there's a different sales process that you kind of need to go through. But ultimately, what we're trying to do
06:18is have a conversation once that inquiry comes in very quickly whilst people are still on the website, if possible. So we'll follow-up an email form that's come through our website with a phone call. We'll engage with that customer, understand what their starting position is, what they're wanting, and we'll try and get them onto a demo an online demo via screen share. When we get them onto an online demo via screen share, we've got a 50% conversion
06:38rate of people who see e-days to signing up in the system. So we run them through a demo. It takes about forty minutes normally. We'll demo by a user and an HR manager. Often our buyers are HR managers or HRDs or payroll or finance type people. And then following that demo, they'll get access to a trial system which will put their logo on and we'll give them some pretend data in that trial system. Then we'll let
07:01them loose on it for a week or so. And during that week, we'll send them a few emails to try and trigger them to use the trial and see if they can use some of the advanced features. And then we'll get in touch with them during that week as well to try and see what they're doing and how they're finding it. And then we'll try and sign them up.
Nathan Latka
07:15How many demos is a salesperson doing each week on average?
Steve Arnold
07:21Probably seven or eight demos.
Nathan Latka
07:24A week?
07:25It's about a one a day.
Steve Arnold
07:26Yeah. Maybe it's a little bit it's a little bit less for some of the enterprise guys because they they... Yeah.
Capital History and Private Equity Raise
Nathan Latka
07:32And and so walk me through kind of capital history today. So have you raised any additional capital besides the private equity?
Steve Arnold
07:39No.
Nathan Latka
07:39Okay.
Steve Arnold
07:39We... All we all we have to do is raise funds to buy out the the the... My partner... Previous partner, essentially, the business, And now we're just running into growth mode.
Nathan Latka
07:50Okay. And so how much did you have to raise to do that?
Steve Arnold
07:54It was about 10,000,000.
Nathan Latka
07:56Okay. About 10 to buy them out. So your partner had what? Like 60, 70% of the company?
Steve Arnold
08:01No, he had more than that. He had... Well, there two of them really. One was a silent partner. One of them had... In total, they had 80% of the company.
Nathan Latka
08:01Got it. Yeah.
Steve Arnold
08:01And then there
08:13was another guy who was running it with me who's still here. He's our CTO, Chris and him and I shared the rest of the company. And then since the buyout we've kind of rejiggled the numbers with a private equity firm and made it really interesting.
Nathan Latka
08:25So does the private equity firm now own obviously if they 80% you're still in the same situation you were before. Do they own less than 50% now?
Steve Arnold
08:31Yeah. No. Sorry. They own about 60%.
Nathan Latka
08:34Okay. This is interesting. So this is almost like a reverse search fund model. Like, right? Where you actually had the company spun it out. I don't know if you're familiar with search funds, but that's what this feels like to me. So you are essentially valuing the company, you know, you were at $3,500,000 run rate. I mean, you were valuing the company at basically $12,000,000, right, or about three, four x when you decide to buy them out.
Steve Arnold
08:54Yeah. It was about that. I mean, it was it was really us going to market to find to find a private equity company who wanted to get involved with the the management buyout. And then it was down to us making sure that we had the right numbers for the for the guy that we wanted to move on, making it sensible for him. It wasn't a hostile thing. It was a very friendly situation. It was different times
09:14of our lives. Twenty years older than me.
Nathan Latka
09:15By the way, he's getting paid $10,000,000. It shouldn't be hostile. He should be on a yacht somewhere.
Steve Arnold
09:19Yeah. Exactly.
Team Size and CRO Hire
Nathan Latka
09:20Alright. Exactly. What's the team size today? How many people?
Steve Arnold
09:23So we got 30 people.
Nathan Latka
09:24Remote?
Steve Arnold
09:25Everyone's in this one office. I'm sitting in here in Nottingham, which is right in the middle of England. There are four new starters this month which takes us up to 30. So one of those guys is actually a CRO, our first CRO. So I've been kind of running that the sales division as well as a lot of the other things you do I guess when you're in situation. Hiring the CRO, his task really is to take
09:48our sales team up to about 20 people including putting together an SDR team to do some proper outbound. We're also starting to partner with other companies So we've got a really nice partnership in place with a large talent management solutions provider. We've got about 30 odd million users of their platform and they're selling e-days as a partner
Nathan Latka
09:48Okay.
Steve Arnold
09:48And HR solution,
Profitability and EBITDA Margin
Nathan Latka
10:09And are you operating at breakeven today or profitable?
Steve Arnold
10:11We're profitable. Yeah, we're profitable. Yeah, mean, this is a different situation from a lot of The US companies, think. With UK companies, often, you you've got more of an eye on that profitability. We're about 45% EBITDA margin.
Nathan Latka
10:28Okay, that's great. So just to be clear, that would mean on $230,000 or 2... Sorry, no not $230,000. You're doing $290,000 a month. You're saying you're taking essentially every month. What would that be? $130,000 to the bottom line?
Steve Arnold
10:39Yes, it's about a million pounds a year. So roughly about the same as what you said there.
Nathan Latka
10:44Yep, yep. That's interesting. Very good.
Steve Arnold
10:46All right. What to do now Nathan is really not focus so much on that margin and really focus on ARR growth. So we're starting to load a lot more cost into the business. We've moved offices. We've got really nice location here now. We're adding marketing team.
Churn and Net Revenue Retention
Nathan Latka
11:01What's churn today?
Steve Arnold
11:03So we've net negative churn.
Nathan Latka
11:05What's gross churn?
Steve Arnold
11:088% of our customers is is our is our... Which would be our...
Nathan Latka
11:12Annual? Say again?
Steve Arnold
11:14Annually? Annually. Yeah.
Nathan Latka
11:16And then when you say net revenue retention is greater than a 100, how far above a 100?
Steve Arnold
11:21It's about a 105%, a 106%.
Nathan Latka
11:21Okay.
Steve Arnold
11:21But what what we haven't had up to date is anything additional to sell to our customers. Now we're starting to widen the application so we can actually start putting more through the upsell route.
Nathan Latka
11:34To be clear though, Steve, if you're churning 8%, you've to expand that same cohort by 13% to get to net revenue retention of one zero five. Is that right?
Steve Arnold
11:42Your brain probably moves quicker than than mine. It sound... It sounds about right.
Nathan Latka
11:45Yeah. Yeah. If I just take a... If you just take the cohort that signed up a year ago and you assume all of them say so a 100%, but they don't. So you lose 8%. In order to make that gap, you gotta get... Sell 8% plus an additional 5%. So 13% to get to one zero five net revenue retention.
Steve Arnold
11:59Maybe. Although a lot of the customers that do leave, if we're looking at logos churning, a lot of those customers that leave are those little companies that don't actually make that much much of an impact.
Nathan Latka
12:07Oh, what's revenue churn not logo churn?
Steve Arnold
12:11Yeah. Sorry. I was talking about logo churn.
Nathan Latka
12:13What's revenue churn? It's lower than 8% it sounds like.
Steve Arnold
12:16Oh, yeah. It's a lot lower. A lot lower. Because those customers that... I mean, I don't know that number off the top of my head. But the customers that are churning are normally the smaller customers.
CAC, Payback Period and LTV
Nathan Latka
12:26Yep. What about growth? You said you're going go all in here, kind of be more aggressive. What are you paying to get a new $200 a month customer?
Steve Arnold
12:35Our average cost
12:40of acquisition in dollars is just below $2,000
Nathan Latka
12:40Okay,
12:45so ten month payback?
Steve Arnold
12:47Eight and a half months is how I calculate the payback. Lifetime value is really strong on e-days. Companies seem to just stick on board for a long time. Choose a five year LTV average to calculate our lifetime value. Yeah. But it's certainly sort of six and a half or so times the cost of acquisition.
Nathan Latka
13:07That's great. Yeah, said you took notes. Must be listening to the show?
Steve Arnold
13:10So my marketing guy... This was arranged while I was in Mexico on holiday. So my marketing guys did this and then I was like, who's this Nathan Latka guy? I'm so sorry. Didn't know about you already.
Nathan Latka
13:10That's fine.
Steve Arnold
13:10I'm gonna tune in a lot because they were really cool. So yeah, listened to a couple of casts about an hour before we had this call. I thought I'd make a couple of notes, see if I can try
13:28and keep up with you.
US Expansion Plans
Nathan Latka
13:29You're doing you're doing great, man. We're we're actually here about to wrap up. Congrats on the worth. By the way, any US expansion plans or no?
Steve Arnold
13:35Yeah. I hope so. And we've got about 60 odd companies using e-days in The US.
Nathan Latka
13:35Do you have a subsidiary here already?
Steve Arnold
13:35No we don't but we've developed functionality to deal with the PTO situation that you have out there in The US because it's a very different all the countries in the world have different ways of managing what we do in our application. And so we had to go to the drawing board and sort of invent
13:54the system to deal with quite a lot of the different localization requirements and the PTO side and The US side is kind of in the system now. We want to try and see if we can get over the water there a bit more aggressively.
Nathan Latka
14:05Yeah, very interesting. Would you consider using something or raising something like venture debt, non dilutive venture debt to drive growth or no?
Steve Arnold
14:12Not at this stage.
Nathan Latka
14:14Yeah, you just use it based off your cash flow?
Famous Five Rapid-Fire Questions
Steve Arnold
14:16Yeah.
Nathan Latka
14:16Yeah, very good. Alright, let's wrap up with our famous five. Number one, what's your favorite business book?
Steve Arnold
14:23I read recently Measure What Matters, which is a John Doerr book I really enjoyed. Also read Aaron Ross' Impossible to Inevitable, I think it's called. A couple of recent ones I've read that I thought were great. In the early days, I used to read up a lot of the stuff from Bessemer Partners that they published. I guess it's not a business book, a lot of good material that I read on there. And now I watch quite
14:46a lot of the blogs, you know, the SaaStr stuff, the OpenView Partners blogs, those I find really useful.
Nathan Latka
14:52Good.
14:53Number two, is there a CEO you're following or studying right now?
Steve Arnold
14:55Not really. No, I tend to just read books and look at blogs.
Nathan Latka
14:59That's good. Number three, what's your favorite online tool for building the company?
Steve Arnold
15:02There's no doubt at all that Salesforce CRM has been super efficient for us in growing this company and getting the data that we needed to scale.
Nathan Latka
15:12Good. Number four, how many hours of sleep do get every night?
Steve Arnold
15:15I'm pretty good at sleep actually, probably about six and a half, seven hours. I've got a little two year old so he's sort of messing around with that a little bit.
Nathan Latka
15:22That's good. So married with a two year old?
Steve Arnold
15:24We're engaged. We're getting married... Getting... Thank you. Getting married in June out in one of the Greek islands.
Nathan Latka
15:29That's exciting. Okay. One kiddo. And how old are you?
Steve Arnold
15:32I'm 40, just turned.
Nathan Latka
15:32Okay. One kiddo, two years old.
15:35You're not getting married at Lindsay Lohan's beach club, are you?
Steve Arnold
15:38I don't know. I don't think so. I didn't know she had a beach club, but I'm...
Nathan Latka
15:44I know. Can find me, I'll come along. I'm totally kidding. You wouldn't want to get married there, don't think. All right, last question. What do you wish your 20 year old self knew?
Steve Arnold
15:53I think my dad passed on some great advice to me which always kept me really on top of things and made me a very positive person. It was really just to believe in yourself, trust your instincts, believe that you can do what you need to do, keep reading, keep investing in yourself and your own learning and keep enthusiastic and try to bring that enthusiasm to other people. If you can do that you won't go far wrong.
Nathan Latka
16:14Guys, e-days believe in your self spun out or actually launched inside a bigger company in 2007, spun out in 2016. Now 1,400 customers paying $200 a month, so doing about $290,000 per month in revenue up from $230,000 a month just about a year ago. So 30% year over year growth rate, they're very profitable. 45% EBITDA taking about a $130,000 per month to the bottom line. They did have to raise about $10,000,000 about a year and a
16:37half, two years ago to buy out a founder and another guy that owned about 80% of the company. But now, just Steve and his team building the company, 30 people in England just brought on a CRO, 8% logo churn annually, doing net revenue retention of about 105% each year, spending $2,000 to get a new $200 per month customer. Eight and a half month payback period assuming, you know, they assume about a five year LTV of about
16:58$12,000 as well. Steve, thanks for taking us to the top.
Steve Arnold
17:01Thank you very much. Lovely to meet you.