Time Control Revenue (2024)

HMS Software reported monthly recurring revenue of approximately $280,000 as of mid-2022, producing an annualized run rate of roughly $3.3 million. Vandersluis confirmed that MRR was approximately $240,000 a year earlier, representing growth of about 17 percent over that twelve-month period. The host noted the implied run rate of $3.3 million and Vandersluis did not dispute the figure.

HMS Software had approximately 280 customers as of mid-2022, up modestly from the prior period. Vandersluis described growth in customer count as intentionally slow, consistent with selling an enterprise system where adding hundreds of new clients per month is neither expected nor the goal.

Named enterprise customers include AMD, General Electric, and Interpol. The average client team size is 300 to 600 users, though the company has several clients with more than 10,000 users. Pricing works out to between $3 and $5 per user per month depending on subscription volume, or roughly $50 to $60 per user per year, billed annually. The average contract value is approximately $15,000 per year. All contracts are structured as annual subscriptions.

HMS Software generates revenue through annual subscriptions to its TimeControl enterprise timesheet platform and its premium TimeControl Projects product. The company does not offer a free tier. Per-user pricing ranges from $3 to $5 per month depending on volume, billed annually, with an average contract value of approximately $15,000.

The company is profitable. Vandersluis reported a pre-bonus profit margin of just under 30 percent for 2021. He allocates approximately 20 percent of profits to a staff bonus pool, which amounted to roughly $200,000 in 2021. After bonuses and dividends, retained profits were approximately $600,000 for that year. The host characterized total EBITDA as approximately $800,000, which Vandersluis did not dispute, and Vandersluis confirmed the retained figure of roughly $600,000 after distributions.

Beyond the 25 full-time employees, HMS Software works with an extended consulting and implementation workforce of approximately 50 people who may be located anywhere in the world. This extended workforce effectively doubles the company's delivery capacity without adding to the core headcount. Churn, LTV, CAC, gross margin as a standalone figure, and burn rate were not discussed in the interview. The company has no outside investors and carries no disclosed debt, and runway was not discussed.

HMS Software employs just under 25 full-time staff as of mid-2022, with most located in Canada. Eight of those employees are engineers. An extended workforce of approximately 50 consultants and implementation specialists supplements the core team and may be located anywhere in the world, bringing the total working population associated with the company to roughly 75 people when that group is included.