Sevenrooms Revenue, Valuation & Funding (2024)

Sevenrooms generated an estimated $43M in annual revenue in 2024.

SevenRooms generated approximately $6 million in annualized revenue as of the October 2018 interview, based on host Nathan Latka's on-air calculation of a $500,000-plus monthly run rate derived from thousands of paying locations at $500 per month each. Patel confirmed the figure was "north of that" minimum.

SevenRooms was co-founded in 2011 by Kinesh Patel, Joel Montaniel, and at least one additional co-founder. Joel Montaniel serves as CEO. Kinesh Patel, who was interviewed for this episode, serves as CTO and co-founder. Patel was 34 years old at the time of the October 2018 interview.

Patel began his career at ExxonMobil, where he worked in research labs focused on physics simulation and high-performance computing, leading software teams and working extensively with data processing. He holds a BS in electrical and computer engineering from the University of Texas at Austin and an MBA in finance and strategy from the NYU Stern School of Business. Patel told Latka that his time at Exxon gave him deep data expertise but no internet experience, and that the opportunity to build a data-driven product for hospitality, combined with a longstanding friendship with Montaniel dating back to age 12, prompted him to co-found the company.

SevenRooms served thousands of customers across 250 cities globally as of October 2018. The company declined to disclose the exact number of locations under contract, confirming only that it was in the thousands.

Pricing is set at $500 per month per location, with unlimited users and unlimited usage at each site. There is no consumer-facing free tier. The model is flat-rate per location regardless of volume, meaning a two-waiter neighborhood restaurant and a 200-staff high-volume venue pay the same price at a given location.

The company's sweet spot is multi-unit hospitality groups, ranging from operators with 10 locations to multinational hotel chains with hundreds. Patel noted that deals are typically piloted at a small number of locations before contracts are signed for all locations, because the data-sharing benefit of the platform is most valuable when deployed across an entire portfolio.

SevenRooms operates a SaaS model, billing hospitality operators $500 per month per location with no per-seat or per-usage fees. Revenue is recognized on a recurring monthly basis.

Gross monthly revenue retention stood at 99% as of October 2018. Patel confirmed to Latka that this implies approximately 12% gross annual revenue churn. Net revenue retention was approximately 100% at the time of the interview on a historical basis, with Patel expecting it to exceed 100% as new product lines drove expansion revenue. The company's pricing structure, where enterprise clients typically sign for all locations at once rather than expanding incrementally, had historically limited upsell-driven net retention, but new products were expected to change that dynamic.

Payback period on new customer acquisition was stated to be less than twelve months. The majority of customer acquisition cost is headcount in sales and marketing. Patel declined to give a specific CAC figure. Profitability had not been achieved as of the interview date; Patel described a scenario where the company could reach profitability within the following twelve months while continuing to fund growth, but characterized it as aspirational. Gross margin, burn rate, and runway were not disclosed.

SevenRooms employed approximately 90 people as of October 2018. The vast majority were based at the company's headquarters in Chelsea, Manhattan, covering engineering, sales, customer success, and all other departments. A small number of sales staff were located in other parts of the United States.

The company's sales model at the time was primarily inside sales, with all sales representatives working from the New York office and a small number doing outside sales.