How Easygenerator CEO Mo'az Galbat grew Easygenerator to $23.9M revenue and 1.3K customers in 2024.

hey folks good morning my guest today is casper spiro he's the ceo of the easy generator and he's both the initiator and driver behind the employee generated learning trend he's made an impact on the field of learning as a blogger at casperspiro.com so good distribution channel there and author of trainingindustry.com learning solutions magazines clo magazine and others also the speaker at various e-learning conferences around the world casper you're ready it takes the top yep all right very cool so hey you came back you came on the show back in november of last year sort of middle of covid how was copen impacting you at the time yeah it was a big boost for our business everything went online basically i think it moved everything forward a couple of years interesting and you mentioned at that time you had about 1200 customers i want to learn more about what you're giving them but how many customers today yeah we're a bit over that so i i actually made a mistake at that time it was like 1100 and now it's around 1250 something like that oh great and what are they why are they paying you tell us what you do so what we do we have a sas solution with an e-learning authoring tool that allows supplementary experts employees to capture their knowledge and share it with their co-workers and so is this are you selling to heads of hr typically or the employees directly now we're selling to to the companies so they they facilitate their employees with the tools so very often we make enterprise wide deals and so if you sell into an enterprise and they buy 100 seats what's that sort of hr manager after they purchase your tool what email are they sending to the team to get them to start using easy generator what's it sound like what do you mean what does it sound like the what the pitch is how does an a after an eight lino head of hr purchases your platform how do they get their employees to use your platform why are employees excited to use it yeah well there there is already a need for that people want to share their knowledge they want to to to do that and there are no real simple tools for that than we are but it's a whole program where we help them onboard them uh we we do webinars with them we help them communicate around easy generator and give them best practices and that way we sort of build out the audience now it's all about creating courses is it just internally for teams or can someone like me an influencer create a course to sell to my community yeah you can so you can just subscribe for a license and buy a subscription uh and create courses we even include hosting and result tracking for free uh but that uh that is where the vision started but we now are moving more and more into the corporate marketing bigger core produce but we still do that why is that so um if you sell to an individual if uh if for example it would be you and something happens with you you will cancel your account so initially this uh the churn was relatively high like uh 25 or something like that now we have moved up market with bigger contracts and determines is below 10. ten percent year annually yeah annually got it um yeah i think you told me churn annually was about 10 uh expansion was 32 and your net dollar retention was 122. have any of those changed uh yeah so i think that we we've grown significantly we grow harder last year than we expected so we ended up like we were planning for around 90 we ended on 94 we still are on the same pace which means the mrr is now over in dollars over six hundred thousand so we made quite a step there okay wait so that's incredible because when you come on the show last you were doing about 360 000 a month in revenue you're doing 600 dollars a month seven point two million run rate just crossed to five hundred thousand euro line so that is uh the six hundred thousand dollar line as well okay i mean that's actually that's impressive growth over six months you've almost doubled over the past six months revenue-wise where'd the growth come from so well we had a huge we had a huge last quarter but especially december was like a record-breaking month so our best month in growth terms ever was 90k a new mmr and last december just that month we did 47k growth in one month net in december yeah just december yeah so it was a huge jump that we make but why i mean you know success is good but if you don't understand why it happened you can't replicate it um it happens almost every year that december is like by far our best month but this was like exceeding all our expectations by far and i think it was partly driven by kovitz so we really thought that people at that time noticed so uh working from home even covet will go away working from home will not so we now need to make choices and commitment so they tried it we saw a lot of uh when cobit started we started selling a lot of pilots so we just gave them a pilot for a thousand dollars a month uh with unlimited capacity during the first month of kovit and that really paid off in the end of the year because then they had to start renew that and a lot of those companies went to to enterprise contracts in one go we actually had uh uh companies going from a six-month pilot straight into our maximum enterprise deal where normally we expect them to take like two or three years to grow into that you told me in december your largest customer was paying 105 000 per year is that still your largest customer no no we have a new one of those pilot customers went over that so i think it's like in dollars around 30. wow okay and why are they paying so much like what are you upselling against is it number of seats what's that what else what else are you upselling yeah so the upsell is more facilities better guidance higher slas but it is the key thing is unlimited seats so people upgrade to get those unlimited seats correct yeah if they buy an enterprise license then they if they go over a certain number of seats they can buy an unlimited license and then uh it doesn't really matter if it's like a thousand or five thousand people altering the price will remain the same when you say better sla you mean going from 99 guaranteed up time to 99.9 guaranteed up time are you refund them uh we have 99.4 uh and we do indeed refund them if we don't make that but uh we're working on the going uh close to 100 so it will be 99.99 shortly so we haven't refunded anybody from that yeah what we did in the past year is that we didn't refund anything no no no because we were way way over that so but we are increasing the quality of our hosting so we took away every single point of failure that we had in the last year we're now working on continuous deployment so we can also go put things live without going down um and we so it will be really close to 100 sir hopefully in a year from now okay now talk to me about capital efficiency have you raised additional capital or still just a 500 000 from 2013. no it's still so we don't have uh also the in 2013 that was also just our own shareholders uh at that time so the company were so we're still bootstrapped yeah um okay got it so does that mean you own 100 business sorry walk me through how the ownership works because i think you told me that this was a spin out initially we were part of a of another company so i started it up as a business unit and we uh sort of grew out of there uh and now we're an independent company for close to 100 people now uh making a profit uh how much how much how much profit per month so last month 30 thousands okay overall it will i expect the year because we're investing a lot of money i expect us to be just above breakeven so just on the positive side of that so making a profit is not a goal but we are growing faster than we can actually hire people and spend money have any vcs reached out asking to invest and if so what's the highest valuation you turn down so we we haven't done into that we have a lot of interest so we actually held a webinar for all the the vcs that wanted to invest in us but we didn't ever really talk to them so we expect maybe in a few years from now but right now we can fund our own growth and we're growing like 100 per year so that is what we want to do maybe if we have plans to even accelerate from that that could be something or when the shareholders decide that they they want to to exit but for now it's not a plan the parent company owns 100 equity of your business you have a rev share agreement how does that work yeah it's very simple so uh if we sell the company uh i have a uh an agreement with that that i cut a percentage of the sale oh i see got it so so interesting got it so is that more or less than 20 it will be less less than 20 but more than 10 hopefully uh no probably not come on so do you regret this is what i asked you've built a great business here you put in your hard sweat tears oh you spun it out i mean do you do you wish you you know tried to negotiate for more back in 2013 um well maybe if i knew what i know now maybe but it's as i told you last time it's not really my big drive and when we will sell the company so one of our competitors articulates...