How Elly Analytics CEO Seva Ustinov grew Elly Analytics to $1.7M revenue and 30 customers in 2024.

guys allieanalytics.com it is your Omni Channel your single source of Truth for Omni Channel attribution he built the 100 person agency and then spun out Ellie analytics a software company in 2018 they're doing fifty thousand dollars five zero a month today in Revenue up from twenty five thousand dollars a month just a year ago so a nice growth rate they raised 360 000 in pre-seed funding last year out of 5.3 million post money valuation they still have about 150 000 of cash in the bank net burners twenty five thousand dollars per month so four to six months of Runway but some of us said that they are growing nicely which they are adding on new customers today they've got 30 customers paying on average twenty thousand dollars per year as they look to scale north of a million dollar run right here in 2023. hey folks my guest today is sevo unisov He is building Le analytics at Ellie analytics.com it's a second time founder founded a digital marketing agency back in 2004 when he was a computer scientist student he scaled the agency to 100 employees and transformed it into a self-managed dividend business he spun off La analytics four years ago initially bootstrapped and raised his first investment last year 600k and committed ARR growing 2x year over a year with a 90 logo retention rate save are you ready to taste the top yep all right very cool so let's go back to the agency here for a second what were you selling to to agency customers so uh we're responsible for growing revenue from digital channels like Google ads Facebook ads landing pages conversion rates uh and typically we just were responsible for the whole Channel gotta and were you think like a 5k monthly retainer for six months or how did you structure pricing uh most leads was retainer plus success fee based on the results okay how did you make sure that you could attribute the results to your work directly so you could get that extra fee uh um we started creating full funnel uh dashboards back with them when we're at agency so we're looking at all of the data and actually knowing where each of customers came from and this is how we attribute them to our channels interesting makes a lot of sense okay so what happened to the agency why did you shut that down or spin out la I didn't shut it down it's actually up and running uh it's just a separate company now I've been building it for 14 years and at some point uh I got this okay I've me and my partner will build that marketing agency uh it was bootstrapped uh and uh self-managed dividend business now and it's in Europe and now uh I want to build a venture company uh software company and in U.S this makes sense so what did you go to market with when did you launch the software product officially what year uh we launched it in 2019 uh and it was like part of the agency and then we spinned it off to a separate company okay so you launched in 2018 now how did you spit it out does the agency own any Equity at seva.com or no it's totally separate no it's totally separate okay totally separate interesting and so 2018 is when you spin it out when you spawn it out what did the team look like did you bring a bunch of people with you uh yeah we started with a small team like six or seven uh persons uh basically if we found first six customers and started building uh platform and dashboard for them and then um using the that experience and expertise and those clients and their team to build platform and transition it to a more uh software like business and so today how much monthly requiring Revenue are you doing monthly recurring Revenue um so we are at 600k ARR that something around 50k per month okay and what are you what are people paying on average per month to use the technology so earlier customers pay less but now we have this structure we start with 1K per month that grow to 3K per month and the biggest clients pay 6K per month oh what's going on there YouTube good to see you guys now imagine this you love watching 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get upset at the 10K setup fee huh uh yeah so we they paid for we thought that it will be enough but actually it took longer and more expensive for us yeah so they played part of the building price and then uh transition to subscription okay so you're doing six hundred thousand dollars a month today or about fifty thousand dollars a month in Revenue where were you exactly one year ago do you remember like exactly two times smaller okay so you're doing about three hundred thousand dollars a year exactly one year ago yeah about 25 000 per month interesting and how many customers are paying now today okay actually one uh small correction uh the overall Revenue was higher because we used to charge for the integration separately and that gave us additional cash flow uh and now we transition to subscription only how much total revenue did you do last year um I think something like 400 or 500k per for the whole year okay so there is about call it 40 to your Revenue came from sort of one time or set up fees yes okay very cool what's the plan this year what do you think your Revenue two um I think at least to one million but we're actually targeting 1.5 million in solution Revenue per year okay well we certainly hope you get there have you done all this bootstrap or have you raised initially bootstrapped and used resources from the agency and will start raising our first external money uh in November and December last year uh we raised 360k at uh 5.3 million valuation and so you consider that your seed round it's between if you can see it yeah yeah yeah well congrats on getting that done how much of that money do you still have in the bank or did you spend it all immediately uh I think at least half and no not I think half exactly okay so you have a hundred thousand hundred fifty thousand dollars cash in the bank today how many months of Runway does that buy you uh with the current burn rate uh it's uh I think four to six months but we're flexible there we have our our recurring revenue and it's growing and we have additional money to spend more on uh one-time projects to boost our growth so if you have if you have 100 000 in the bank and you've got right in your right way four to six months that means your net burn monthly is about twenty five thousand dollars per month what are you spending money on today uh we hired couple more developers but mostly we're spending on uh um sales and marketing efforts okay how many folks are full time uh 20 something oh wow you're getting up there you have to...