Query.AI Revenue, Valuation & Funding (2024)

Query.AI generated an estimated $10.5M in annual revenue in 2024.

Query.AI generated approximately $960,000 in revenue in 2021, up from just over $125,000 in its first year of selling in 2020. At the close of 2020 and entering 2021, total revenue stood at just north of $100,000. By December 2021 the company was running at roughly $80,000 per month in revenue, compared to approximately $10,000 per month a year earlier, representing growth of roughly 800 percent on a monthly basis.

Query.AI had just under 10 customers at the time of the December 2021 interview, with Maloney noting a couple of additional deals he hoped to close before year end. All contracts are structured as annual deals. The company signed its first paying customer in July 2020 on a multi-year paid annual contract.

Average selling price at the time of the interview was just under $100,000 per year. Maloney said the company planned to grow ASP to $125,000 in its 2022 forecast and believed it could reach $200,000 on average over the longer term. Pricing is tiered by number of security analysts, starting with one to three analysts in the first tier and moving up in buckets of three through 15 analysts, after which pricing becomes custom enterprise. There is no usage-based upsell today; the model is all-inclusive for integrations and APIs. A freemium or product-led growth option was under consideration for late 2022 but had not launched at the time of the interview.

Because contracts are annual, Maloney noted that upsell and expansion revenue opportunities had not yet been realized for most customers. The first customer, signed in July 2020 on a multi-year deal, would not have an upsell opportunity until the third year of that contract, meaning 2022 would be the first year expansion revenue could be captured from early accounts.

Query.AI sells annual software contracts to enterprise security operations teams, priced by number of analyst seats in tiered buckets. The average contract value at the time of the interview was just under $100,000 per year, with a target of $125,000 for 2022 and a long-term target of $200,000. With approximately 10 customers at roughly $96,000 average, the implied 2021 ARR was approaching $960,000.

The company employs a direct sales motion with three quota-carrying sales representatives as of December 2021. Year-one quota for a new sales rep was set at $1 million, with a three-month ramp period. The ongoing quota target was $1.2 million per rep. Maloney noted that new reps are not starting with an empty pipeline and that the company aims for reps to be closing their own new deals by the six-month mark at the latest.

Gross margin, burn rate, runway, churn, net revenue retention, CAC, LTV, and payback period were not discussed in the interview. The company noted it had a large government agency pilot deal closed in Q3 2021 and described expansion opportunities through managed security service provider style arrangements. A product-led growth or freemium tier was being evaluated for late 2022 but had not been implemented.

Query.AI had approximately 26 employees as of December 2021, up from roughly 10 at the start of 2021, meaning the company added approximately 15 to 16 people during the year. The engineering team stood at approximately 12 to 14 people at the time of the interview, with offers outstanding and a sprint target of 16 engineers. The development team is based in India.

The company had three quota-carrying sales representatives and a VP of sales. Maloney said the company planned to reach approximately 40 employees by the end of 2022, with hiring focused on sales, marketing, and engineering.