How Redtrack CEO Vlad Zhovtenko grew Redtrack to $2.3M revenue and 500 customers in 2024.

hey folks my guest today is Vlad jovtenko he's the founder and CEO of red brick red track dot IO he combines his passion for digital marketing and creating things since 2000 and now as a Founder he's always looking for to learn from people who are ahead of him on both path and fundraise but also likes to have a nice life besides Stardust glad you ready to take us to the top yep we'll try it just to be clear so is red track bootstrap today are you phrased no we're raced and we already saw you three times already yep okay all right well don't tell us how much we'll chat about that a little bit but first tell us what is the company what are people paying you for people paying us to get comfortable uh daytime when they do digital marketing basically they see everything in their campaigns in green and they know things are going good if something goes bad we have automation that can stop the campaigns let them know and they will look and dress the issues while they paying us money because the whole digital marketing is shifting from third-party cookies to first party data and that's how rhetorical praise it helps digital marketers measure their campaign performance across all channels consistently and based on first party data so that's what people are paying us for I love this okay and so so what are people paying you per month on average uh we uh for the last two years that's basically since last time we talked we increased our average learning per customer from uh 400 to close to 200 per month and that's what people are paying us now of course we have Legacy customers we have new customers so that's averages are what they are well just be clear sorry you said you increased from 400 to 200 that would be a decrease sorry for 40 to 200. okay that's what I thought yeah last last time you came on last time I came on back in 2019 you told me you were doing about forty dollars per user per month now you're at 200. what drove that expansion are two things uh we basically we're cutting load your subscriptions adding High test subscriptions and to but not just cutting we actually were expanding the product for those two years uh making sure that when we charge more we actually deliver the value to those people who pay more and Vlad what is your largest cut don't name the customer what's your largest customer paying you today annually annually around 60k without it yep okay because so why do they why do they pay you so much are you upselling seats or features or something else uh we upselling seats and we have selling volume volume of what a volume of data are tracked for a particular customer is in billions of clicks per month volume of data measured by number of clicks per month yep in this particular case okay so for someone paying you sixty thousand dollars a year how many clicks per month are they managing through your system well uh slightly more than a billion a billion in clicks per month yep wow that field a billion is a big number it feels like that ACV should be like 120 Grand or a million a year or something uh that's our Legacy customer we have actually uh very uh friendly uh system towards a big data hello and most other customers we have don't have nearly as much volume as this one customer does I see okay and now how many customers are you working with today total 500 okay 500 customers and so I mean can we take 500 customers at 200 bucks a month you guys are doing about 100 Grand a month in Revenue uh well that's where averages so yeah we're doing currently uh 75k per month oh you're very close you're very close to the million dollar run rate exactly yeah and so I mean I'll be honest if not the one Ukraine would be there last three months for a bit rough for us a lot of customers we had from Europe uh actually they and actually from Europe they were on a bit of uh not decline but let's say uh steady grows so we were growing couple of plus months just one and two percent per month which stopped us short of reaching 1 million Aurora which was my goal for June 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 different evaluations inside of your founder path dashboard this is all free by the way is because depending on who's doing the buying of your SAS company you're going to get a different valuation a VC is going to pay a different valuation private Equity Firm is different if you're going to do a minority sale that's different and if you sell the whole business that's a different valuation you can see all those when I hover over here here right so the teal is what a VC would pay yellow is what private equity and red is if you sold the whole thing outright now what's cool about this is this is not built off random data again you guys hear these interviews on YouTube all these datas are built from real-time valuation data points Founders share with us on the show so traction 1.2 million seed round 3.7 raise they sold 22 percent of their business go in here and filter by the event maybe you only want to see companies that have sold the whole business well here are a bunch that have been acquired the valuation and the multiple maybe you're going out right now and you're raising your seed round well go in here and look at all this recent seed deals that went down what they raised what valuation they raised at and what percent that they sold there's never been a larger data set of SAS valuation than what you can get now inside of founder path and we're thrilled to bring it to you all right we're gonna go back to the YouTube video here in a second but if you want to check this tool out if you want to jump in and sign up you can check it out for free to get your valuation at this link this link founderpath.com forward slash products forward slash evaluations or if you go to founderpath.com and hover over products click on get your valuation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform I hope to see you there all right let's jump back into the interview I didn't know that so you're currently based in Ukraine no uh we have part of the team in Ukraine part of the team in Lithuania part of the team now across Georgia and Tokyo wow okay interesting okay so you're obviously moving pieces around as we deal with obviously the war going on as well right yep yeah and how has that impacted you uh I would say uh the big impact more was on team production uh and uh capacity to move because I know when we have uh developers actually having to run to bomb shelters three times a day but impacts the production in terms of wow and meaning that uh a part of our company was not working uh proper full times a part of our company was even being full-time you know people have other things to think about when there's a lot going on so it was an impact it was mostly a mental impact to the uh production rates but I'm uh grateful to the whole team that uh they managed to find strengths to actually also think about the company not to only about things that are more important than business now this makes sense and I'm glad you know everyone's okay and you're managing through and still growing uh you didn't grow as fast as you wanted but you're still growing which is great uh now how many folks are on the team full time today uh we have 35 people uh sorry uh two people will join next week so we have 35 now we have 33 people full time and actually we expanded ourselves into new roles we have three people in our Brazilian office to address most of this customer success our U.S Infinity customers which for everyone listening right now who is who are based in Europe looking to expand to Brazil how did you find those first three employees in Brazil amazing we're extremely happy yeah but how for anyone listening right now who's based in Europe and wants to expand to Brazil how what can they learn from you how can you how did you find your first three well we a used LinkedIn just to find people who worked in companies that looked like our right profile so basically doing the uh recording uh ourselves uh but uh surprisingly the path to us was opened by our first pursuing high when we had the local ad which reached out to us hey guys I want to join the team I said well and it was about cavity time so we already said to work remotely why not so we uh confirmed her suggestion we hired her and we found to have to be an amazing uh team member so I said hey can we find more uh sorry if I hire more people around yes of course so we started to look around we had one more person then one more and we actually plan to hire more people in Brazil uh by the end of the year that first employee did you pay her to bring on new people did you pay her attention uh...