Outreach Revenue, Valuation & Funding (2024)

Outreach generated an estimated $300.8M in annual revenue in 2024.

Outreach crossed $10 million in new bookings per quarter in 2018, a milestone Manny Medina described as an exclusive disclosure during the interview. The company was targeting $17 million in new bookings per quarter as a stretch goal by the fourth quarter of 2019. Medina framed the business around input metrics, specifically new bookings velocity, rather than a stated ARR target, though he confirmed the company was still growing at more than 100% year over year as of early 2019.

Outreach reported 3,100 customers as of early 2019, up from 2,200 approximately eighteen months earlier. The average contract value at the time of the interview was approximately $40,000 per year, which Medina described as a floor, noting the range extended to $60,000. That figure represented a significant increase from the $2,400 annual ARPU Medina had cited in a prior 2017 interview, a rise he attributed to moving up market toward enterprise accounts with more complex security and governance requirements.

Medina noted that enterprise customers bring non-negotiable requirements around security and compliance that smaller accounts cannot trade off, which supports higher contract values and reduces price sensitivity at the top of the market.

Outreach operates a subscription-based SaaS model with gross margins of approximately 80% as of 2019, a figure Medina confirmed during the interview. He noted that healthy SaaS companies typically run gross margins between 65% and 80%, with the majority of cost of goods sold attributable to cloud infrastructure such as AWS or Google Cloud.

Net dollar retention stood at 140% as of early 2019, which Medina described as a direct result of the company's structured onboarding process. New accounts are assigned an implementation manager who works the account until 70% of purchased seats reach daily active usage, measured by what Outreach calls sales positive motions: actions within the platform that create meetings, replies, follow-ups, or opportunities. Only after hitting that 70% seat adoption threshold does the account graduate to a customer success manager focused on expanding workflow adoption and capturing additional use cases.

The implementation manager to account executive ratio was one to one at the time of the interview. The SDR to AE ratio had declined from approximately 1.5 SDRs per AE to less than one SDR per AE, with a target of one SDR supporting two AEs, driven by efficiency gains from Outreach's own platform. The company's CAC payback target, gross margin adjusted, was 20 months. Customer success managers carried renewal targets and received commission upside for hitting them, though Medina described the commission as less than 10% and noted CSMs did not face termination for missing quota. The company was burning between $2 million and $3 million per month as of early 2019 and was not cash flow positive, a condition Medina attributed to the need to hire and ramp sales capacity ahead of revenue recognition when doubling year over year.

Outreach employed 315 people as of early 2019, up from 250 at the time of the May 2019 interview. The team is based in Seattle, where the company had recently moved into new offices. Medina noted the company was actively hiring at the C-suite level, with the CRO role having just been filled by Mike Muni.