How Nutrisense CEO Dan Zavorotny grew Nutrisense to $60.2M revenue and 15K customers in 2024.

asnutronsense.com they're doing 3.3 million a month today in Revenue up from call just under a million a year ago so really Healthy Growth past 12 months they got going back in 2019 marketing pre-marketing inside of Facebook groups like the ketogenic group and aurorin group once they pre-sold and had traction they did a 250k seat around they raised about 32 million bucks today to scale this company now a team of 170 people again you want to measure your glucose levels you put a little white thing on the back of your arm you get the app you pay about 2200 bucks per year if you want a 12 month plan they've got nice Arbitrage as they spend about 200 bucks to get a new customer now looking to scale hey folks my guest today is Dan zavarotti he's the co-founder and CEO of nutrisense a metabolic Health company that helps anyone discover and reach their health potential under his leadership the company's become one of the fastest growing startups in America he's led the company through Rapid growth building a team of 170 employees in just over three years and raising 32 million dollars January tickets to the top let's do it so just to be clear is this sort of a d2c company or is this Pure Play software B2B sure we're purely GDC right now uh it doesn't mean we're not going to go B2B our belief system is that specifically around the healthcare industry it's very hard and long takes to go to B2B so the trends then go direct to Consumer uh show folks what is possible and then push the industry in the B2B Direction so they can start asking for it and making progress so I mean how do you do a churn right I mean is it a subscription fee and how to keep folks engaged yeah so people sign up for subscription uh we have different options anywhere from one three six or twelve months and people commit to a certain time frame and turn you know for direct consumers always an issue but the way we look at churn is as long as there is at least three to one contribution margin uh lifetime value to our CAC we're always happy with that so as long as we keep maintaining it we're always pleased you know in theory if you're ever as long as you're above one to one ratio you're always uh successful right because then you just have to cover your fixed cost but three to one is really what we aim for all the time and so what do you spend on cap typically uh sarc X range you're for instance from like absolute dollar amount sure uh our tax range based on channels but it goes anywhere firm free to all the way up to like 300 right it really depends on the channel we use mix from Instagram Twitter quora Pinterest I mean really every single YouTube influencers every single Channel you can imagine but if you look at all of your paid spend last month divided by the new customers driven from those paid channels what were the weighted average CAC B something like 150 200 bucks yeah around 200 I'm around 200. interesting and what what are they paying so so what's the average customer paying per month per six month per year sure so it's a we so we look at the LGB ratio in two different ways one is the gross booking one is the actual uh realized LTV and the reason I say is because so some of us might sign up for let's say six month plan and that might be a 1200 plan uh they're paying however they may actually like the program so much they may stay for an extra three four months so what we realized our customers is our product is direct consumers we can continuously iterating on it so the retention actually improves so we see this when we first started give you context we first started people would stay for like three weeks right uh and now we've related to the point people who are staying seven to eight months on average and a lot of times it's just we basically once we get someone in the funnel we now have the ability to keep consistently trying to convince and stay longer and so every it's now the same time where it's like you have a you know two-year contract you're done it's more of we try to understand actually going to call their customer basically monthly to understand like what is it you like and if we're close to solving your problem great what's the next problem you want to solve right I think if you take a look at specifically around the healthcare system and the health itself that's one of the few things that will never go away right if you think about you know a car you bought a car you have a car now you're good with health unfortunately people say we started dying at the moment we were born and so how do we make sure we prolong your health uh as long as possible and solve in some ways right so Dan just because I know you have multiple different price points but the the average if we you know if a six-month plan divide by six right to get a month and the monthly rpu is about what 100 bucks 200 bucks uh around 225 225 okay and the cheapest that they can get that effective per monthly cost would be if they sign up for like a year-long plan maybe it goes down to like 188 a month or something like that yeah exactly exactly yeah yeah you're right now okay okay well it's like I think it's like 189 or something like that okay so that would mean the annual plan is uh what is that something closer to two to twenty two hundred bucks yep oh what's going on there YouTube good to see you guys now imagine this you love watching these interviews with SAS Founders but imagine if we took all of the valuation data out from over 2807 interviews I've done manually saves you a lot of time well we've done this we've built the into the beautiful interface inside of founder path check this out I'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals for evaluation this year now the secret valuation is there's many different ways to value a SAS business so the reason you're going to see three or four 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really quick here let me just take a step back for a second right so you have you know it's all about health but I think there is a physical monitor people are putting them back in their arms appetized to and you're mainly focused on glucose give us more detail on the product sure so basically there's three three pieces you get you sign up and we write a digital medical prescription in your state for you through our health partner or a device called continuous glucose monitor uh then we add analytics on top of that why is that important why is that important the first thing you just said sounded very official why is that required or why is that needed yeah so when these devices came out they were specifically focused on type 1 diabetics and it was meant for insulin injection uh as the Medicare and Medicaid system expanded they realize this is effective for type 2 diabetics so uh who are initial injections but that was for that was the focus of the device when it first came out as the device became more and more effective and the life was of the device was lasting longer they started expanding the codes for what they could use it for and so these devices basically track your glucose in real time 24 7 on stop and when they first came out they were tracking for like four hours at a time they became eight hours at a time then a day now they're tracking 14 hours at a time and so that's the piece that makes this device...