Honestly Revenue, Valuation & Funding (2024)

Honestly generated an estimated $3.2M in annual revenue in 2024.

Honestly generated approximately $1.6 million in annualized revenue as of mid-2022, equivalent to roughly $130,000 per month across its 100 active customers. That figure represented approximately 100 percent year-over-year growth from roughly $65,000 per month, or about $780,000 annualized, one year earlier.

Honestly had 100 paying customers as of mid-2022, collectively managing approximately 70,000 employee licenses on the platform. Named customers include Helvetia, an insurance company, and Sunrise Technologies, a mobile technology company.

The average contract value is approximately $1,300 per month, implying an average team size of roughly 700 employees per customer account. Pricing is set at $1 to $2 per user per month. Freudenthal confirmed the $1,300 per month average directly when Latka proposed the figure.

Honestly operates a per-seat SaaS model priced at $1 to $2 per user per month, billed to enterprise HR buyers. The average monthly contract value of $1,300 across an average account size of roughly 700 seats implies an effective per-seat rate near the lower end of that range for most customers.

The company reported a 10 percent EBITDA margin as of mid-2022, confirming profitability. Net dollar retention stood at 106 percent, meaning the existing customer base expanded revenue by 6 percent net of any contraction, with 20 to 30 percent of total growth in the prior year attributable to upsells. Freudenthal said he did not have gross churn figures available during the interview. Profitability was achieved with a team of 12 people, compared to 25 employees under the prior unprofitable model that generated similar top-line revenue. Revenue per employee under the current model is therefore materially higher. Burn rate, CAC, LTV, and payback period were not discussed in the interview.

Honestly employed 12 people as of mid-2022, with three additional hires pending start dates in July or August 2022. Five of the 12 employees are engineers. The company previously operated with 25 employees under its supermarket tablet business model, which generated comparable revenue but was unprofitable. Freudenthal attributed the leaner headcount to a deliberate policy of saying no to projects without clear impact, citing the decision not to pursue partnerships as one example.