Leon Revenue, Valuation & Funding (2024)

Leon reported approximately $2.16 million in annualized revenue as of August 2022, derived from an estimated $180,000 per month in SaaS revenue and additional marketplace revenue that together totaled roughly $210,000 to $220,000 per month. Smith told Latka that the company grew 116 percent year over year, implying revenue of approximately $1 million annualized, or about $100,000 per month, one year prior, which aligns with the stated 2021 figure of $1.2 million.

Leon reported 264 paying customers as of August 2022. Of a total of 1,500 sign-ups including free and inactive accounts, 750 were classified as active users, defined by Smith as accounts where data was being submitted and some action was being taken within the product, such as engaging with content, starting a playbook, or purchasing a marketplace product.

The platform's pricing is $350 per manager per month on the SaaS tier. Smith noted that while the company targets enterprise sales functions with seven to twelve managers per account, the actual current customer base skews toward individual sales managers or small teams of roughly two seats per account. At two seats per paying customer, the implied SaaS revenue per account is approximately $700 per month. The platform also offers a free plan, which Smith described as a driver of marketplace engagement and product-led growth. The company launched the free tier as part of a deliberate shift to increase marketplace revenue share.

Leon operates two revenue streams. The primary stream is a SaaS subscription charged at $350 per manager per month, which accounted for approximately 70 percent of total revenue as of August 2022. The secondary stream is a marketplace revenue share of 20 percent on every dollar spent on third-party wellness services booked through the platform, split evenly at 10 percent from the employer and 10 percent from the service provider. Partners include Headspace, Calm, Equinox, SoulCycle, and InsideTrack.

Smith described the marketplace as a stickier revenue source than SaaS because Leon can quantify the impact of the services it recommends, creating a measurable feedback loop between employee data and benefit spending. The company shifted toward a product-led growth model, using the free plan to bring users into the platform and convert them to marketplace purchasers. Smith noted that the marketplace revenue share percentage was growing faster than SaaS as a proportion of total revenue.

Profitability was not discussed in the interview. Gross margin, churn, LTV, CAC, payback period, and burn rate beyond Smith's general acknowledgment of over-spending were not disclosed.

Leon employed 26 people as of August 2022, including 13 engineers. Smith described the sales and marketing function as consisting of himself and his co-founder only, with the remainder of the team split between customer success and engineering.

Smith characterized the company as understaffed relative to its growth, saying the team was "panicking completely" and that hiring a VP of sales, director of sales, or VP of marketing remained a future priority contingent on resolving several product processes still being handled manually on the backend.