Tomi.ai Revenue, Valuation & Funding (2024)

Tomi.ai crossed $1 million in annualized recurring revenue in December 2021, Bayandin confirmed during the February 2022 interview. At the time of the interview the company was generating approximately $80,000 to $90,000 per month in revenue across 24 customers, each paying $5,000 per month.

Tomi.ai had 24 customers at the time of the February 2022 interview, up from 4 customers approximately one year earlier. The company charges $5,000 per month as its starting package, which applies to customers spending up to $100,000 per month on Google and Facebook advertising. Customers spending above that threshold move to higher-tier packages with per-usage pricing that includes some volume discounting.

Bayandin noted that annual contract value for a customer at the base tier runs $50,000 to $100,000 per year. Six of the 24 customers had been with the company for more than one year at the time of the interview. The original four customers from early 2021, which included real estate, two ecommerce companies, and one education technology company, were all still active at the time of the interview. Bayandin said the company runs pilot projects with new customers to prove value before converting them to recurring annual contracts, and he expected approximately two thirds of pilots to convert to permanent recurring customers.

Tomi.ai operates as an enterprise SaaS business with a monthly subscription model starting at $5,000 per month per customer. The company does not run advertising on behalf of clients; it provides software that customers or their agencies use to optimize their own Google and Facebook ad spend. Revenue is recognized from the software fee, not from ad spend managed.

Bayandin described a demo-to-contract conversion rate of 20 percent, meaning roughly one in five product demonstrations results in a signed contract. The company's primary customer acquisition channel as of early 2022 was outbound cold outreach, supplemented by a small amount of paid social advertising. Total paid ad spend for the fourth quarter of 2021 was $4,000 across LinkedIn, Facebook, and Twitter. Bayandin said the company's target customer acquisition cost is 40 percent of first-year revenue, meaning for a customer paying $60,000 in year one the company is willing to spend up to $24,000 to acquire them, though he indicated actual CAC was well below that target at the time of the interview.

Gross burn at the time of the interview was $130,000 per month. Bayandin estimated monthly churn for customers who have converted from pilot to annual contract at 1 percent to 2 percent per month, though he noted the customer base was too young to measure this with confidence, as most customers had joined within the prior six to nine months. Profitability was not discussed in the interview. The company's target addressable market was estimated by Bayandin at $20 billion in digital ad optimization.

Tomi.ai had 19 employees at the time of the February 2022 interview. Bayandin described roughly half the team as working in technology, including engineers and product people, with himself included in that count. The company began hiring in February or March 2021, after Bayandin had run the business alone for approximately one year.