How Segmint CEO Rob Heiser grew Segmint to $6.2M revenue and 140 customers in 2020.

you're gonna love this interview just got done editing it i'm glad i got it live for you i'll be in the comments for the next 30 minutes hanging out answering any questions you have in fact leave a comment below about data points or what you think is going to happen to the company and i will respond to every comment additionally if you're just loving the content click the thumbs up and i will go and check out your profile as well and give your videos some love as well in the meantime enjoy the interview hello everyone my guest today is rob heiser he's the founder and ceo of a company called segment which is helping companies make sense of their transactions uh serving right now obviously as vice chairman also a co-founder but more importantly innovative financial technology company uh it's a it is an innovative technology company based in ohio robbie you're ready to take to the top yes all right so what does this mean what does this mean make sense of transactions um what we really do is we're a group of library scientists researchers and we look at if you've ever seen your bank statement you'll see a lot of hieroglyphics you know it might say starbucks and some numbers a store number city what we do is we take all that transaction data and we do research against them and we have a huge uh rules engine that's based on machine learning artificial intelligence but also real human research and that creates a very high quality high categories and high match rate of every transaction that runs through a banking system so to give you an example of that if you see something that's like wdw underscore cro underscore ref most institutions won't know what that means um what we know is that is a customer of walt disney world and actually a vacation club buyer so that means that they're a vacation that they they like walt disney world and they also have a vacation cub club membership so it means a lot in terms of what a bank's looking for in terms of what their customer might be doing next so who are you actually selling to who's paying you um so we sell a lot through what's called a core a financial or fintech company they have core systems a bank core system we sell through them but the end customers like a credit union their financial institutions we sell all the way from some of the you know maybe 250 million assets all the way up to one that has over a trillion in assets so what i'm trying to understand is are you selling to like chase or are you selling to like a hedge fund that wants to understand consumer behaviors specific to payments actually being made no more to the bank okay financials to chase to bank of america okay yeah that's who someone like them but not of that scale you know we're more mid-market and down markets um about a 100 billion and under is typically where we play okay interesting and why is that can you not be used at scale oh no absolutely we can um it's just uh you know they might have something they've built in-house um we're getting there we're growing up up market pretty quickly when you came on last time back in october of 2018 you shared you're working with about 12 of these folks how many are you working with today uh over a hundred oh wow okay so i mean really nice scale there and and now how do you build is it a sas model or is it per transaction analyzed or what so we're sas business we charge on a per customer or in a credit union it's a per member per month so they get they get charged for the amount of active account voters they have in that last year we charge them based on that interesting so a small little bank in san antonio texas called jefferson bank might use you if they have a thousand depositors and under a 100 billion in aum you're going to charge them based off the thousand people that have deposited some money with them correct so scales down and scales up based on the size of the institution interesting okay and what i mean so give me an average here the average institution are we talking like ten thousand dollar acb accounts or like 10 million kind of acv accounts on how many account holders they have sorry sorry no on average what are these smaller banking institutions paying you per year to use your technology um it just depends on so we sell a lot through channels and we have several different products that we sell so you could try you know we could be anywhere from you know six cents to 20 cents per customer per month just depends on what they're buying i guess what i'm trying to get in because i just don't i don't know how many depositors some of these smaller institutions have like i don't know if i'm multiplying six cents times a thousand positive or six cents times a million i would say our average size institution at this point's about 120 000 customers oh wow okay much that's much bigger than i would have thought okay so about 120 000 depositors and again you charge six cents to 20 cents per depositor correct that's right okay which would be like 72 000 up to what is that like 180 000 per year kind of contract values yeah typically if we have higher than that just scales again it scales down scales up so if you have 40 000 to be much less and if you're buying more of our products it'll be more than if you're buying less of our products yeah so you you the sixth sense to 20 cents is how many products are you buying per customer of the banking institution and then the actual size of total contract you multiply whatever that number is times their number of depositors their customers that's right so we have a we have one product that just does what's called merchant cleansing so we we get a transaction that has all those you know we call it a dirty string uh you know uncare uncaring uncategorized string we get that in we'll we'll clean it so we cleanse it so starbucks might come in with a bunch of other information we return starbucks and return it to coffee shop and we return the logo so they can use it inside of online banking or mobile banking just to create a better user experience so that would be one product but then we also do lifestyle analytics we're doing automated messaging and communication to the customer so we go all the way up and we can scale all the way down just depends on what they're buying from us yup now have you continued to build this with a 30 million you had already raised last time you came on or did you raise more capital uh we raised a little bit um you know but we're you know we we've grown pretty significantly since last time i've been on and uh you know we're uh extremely close we have very little burn at this point so things are um we're almost cash flow this should this month will be cash flow uh positive in april oh that's good so when you say like i mean you're turning like less than 100 grand a month in net burn oh yeah yeah yeah that's obviously a good place to be with obviously the virus hitting is the virus impacting your business at all you know in in terms of us uh we've maybe seen some deals slide into the you know the next quarter but i would tell you it's been more um more beneficial and the reason i say that is because we're trying to help our customers it's not necessarily we're trying to drive revenue around that but one of the things that we're doing especially with our financial institutions is we're helping them identify where the where the need is right they have lots of customers and it's hard to you know distill down to who really needs you right now and so what we're doing is really helping them do that we get all their transactions on a daily basis we're seeing what customers maybe have now or starting to get unemployment so that means they lost their job or someone who's trying who's furloughed we're we're helping them identify that and giving them literally we created a report that they get like we're giving it some for free just as part of our service to help you know what's happening in the world is we're giving them this report and it's a what's called a financial health vital signs report we created five areas in which we said these are areas in which you should be talking to your customers if these one of these things happen yes drastic loss of income you know maybe they're doing payday lending right these certain things that if we see triggers you should have a conversation with them because there's probably better ways for them to you know get through this crisis than some of the things they're doing today rob how many customers are you supporting again through these banks when you add them all together it's gotta be in the millions right oh yeah yeah we're yeah we're probably over 10 million at this point 10 okay across your 100 cost 100 banks correct yeah okay and what's your team size today how many folks um we have about 30 in the chicago falls office and about 10 in the denver office okay so about 40-ish total there and how many engineers uh on our product team and data team we got to have close to 18 or 20. 18 or 20. okay that's good yeah so obviously having a lot of engineering work here that's right yeah very good um look i know you got to head out so this is a nice growth what do you think again when you altered your plans because of the virus what do you think your guys's growth rate will look like over the next 12 months you know i don't i really don't think that our pipeline's gonna slip too much uh you know we've uh already for this year we've doubled our revenue from last year from booking's perspective so...