MP Revenue (2024)

MP generated an estimated $209.7M in annual revenue in 2024.

MP was on pace to cross $10 million in annual recurring revenue in 2021, running at a monthly recurring revenue rate of $650,000 at the time of the August 2021 interview. Maxwell told Latka that the company would cross the $10 million recurring revenue mark by December 2021.

MP served approximately 1,300 client logos as of mid-2021. The average client has 29 employees, and the largest client has 3,200 employees. MP targets lower mid-market companies, defined as businesses with 50 to 500 employees.

Pricing is structured on a per-employee-per-month basis, ranging from $8 at the low end to $40 at the high end depending on the level of services and software functionality a client subscribes to. The average per-employee-per-month rate is $13, producing an average annual contract value of $6,500. The largest client pays above $400,000 annually, subscribing to the full suite of MP services.

MP keeps its average client for more than six years, which Maxwell cited as evidence of strong lifetime value relative to the customer acquisition cost.

MP generates revenue through a recurring per-employee-per-month fee model, selling, implementing, and supporting the isolved HCM platform alongside wraparound HR services. The average deal value is $6,500 annually, and the company's 1,300 logos produce a monthly recurring revenue run rate of $650,000 as of mid-2021.

MP is profitable, bringing approximately 8 percent of revenue to the bottom line on an annual basis. Maxwell told Latka the company invests roughly 26 percent of revenues back into sales and marketing. Customer acquisition cost is approximately $11,000 per client against an average deal value of $6,500, producing a CAC payback period of 20 months. Net dollar retention reached 105 percent in 2021, an improvement Maxwell described as better than recent years. Controllable churn, defined as clients lost to competitors, runs at approximately 4 percent annually. Non-controllable churn, covering clients that are acquired or go out of business, adds another 6 to 8 percent, bringing total gross churn to roughly 10 to 12 percent annually before expansion offsets it.

MP's EBITDA margin of 8 percent on a projected $10 million revenue base implies approximately $800,000 in annual net income. Maxwell noted that companies in MP's category are valued on a revenue multiple rather than an EBITDA multiple, with comparable transactions occurring at 2.5 times to 5 times revenue. Profitability was confirmed as an annual figure; Maxwell noted the company goes through hiring cycles that affect quarterly results.

MP employed 70 people as of the August 2021 interview. The team includes 12 account executives, 5 sales development representatives, and 2 customer success managers. The company employs zero engineers, consistent with its model of distributing and servicing a third-party platform rather than building proprietary software.

Account executive quotas range from $400,000 in annual recurring revenue for newer AEs to $650,000 for more experienced account executives.