Vervotech Revenue (2023)

Vervotech generated $2.9M in revenue in 2023.

Vervotech reported approximately $240,000 in monthly revenue as of September 2023, equivalent to roughly $2.9 million on an annualized basis. That figure was up from approximately $160,000 per month one year earlier, representing growth of approximately 75 percent year over year. Ghare told Latka that the company had been growing at roughly that rate for the prior two years, with most of the acceleration occurring in the eighteen to twenty-four months following the end of pandemic-related travel disruption.

Vervotech had more than 200 paying customers as of September 2023, whose platforms collectively power more than 1,000 booking websites globally. The company's annual contract pricing ranges from a minimum of $12,000 to a maximum of $100,000 per year depending on usage volume. Ghare confirmed that the average contract value is approximately $16,000 per year, or roughly $1,200 per month per customer.

All contracts are structured as annual SaaS subscriptions. Ghare noted that early pricing was ad hoc and that the company's first customer signed a seven-year contract at a fixed price, a deal Ghare described as a concession made when the company urgently needed its first reference customer. That customer was still paying the original rate at the time of the interview, which Ghare estimated at approximately $30,000 per year. Vervotech now adjusts pricing annually for new and renewing customers, and pricing is described as publicly available.

Growth in customer count has come primarily from net new customer additions rather than expansion within existing accounts, according to Ghare.

Vervotech sells annual SaaS subscriptions for access to its hotel data mapping and standardization platform. Revenue is usage-based within the subscription tier, with contract values scaling from $12,000 to $100,000 per year. The average contract value of $16,000 per year implies an average monthly revenue per customer of approximately $1,200.

The company operated at a 30 percent EBITDA margin in 2022, which Ghare described as the target operating level. Vervotech ran a profit-sharing program for employees for two years prior to the acquisition, distributing approximately 25 percent of annual profits to staff outside of their base compensation. Ghare described the program as performance-linked, with bonuses allocated by department based on metrics such as new customer acquisition cost, sales conversion rate, average deal size, and product attrition rates.

Vervotech was bootstrapped and did not carry external debt or equity obligations prior to the Constellation acquisition. Gross margin, burn rate, churn, net revenue retention, LTV, CAC, and free-to-paid conversion were not discussed in the interview. The company does not appear to offer a free tier; all customers are on paid annual contracts.

Vervotech's total employee count was not disclosed in the interview. Ghare referenced a leadership team of four other people in addition to himself, and described functional teams covering marketing, sales, and product or engineering, but did not give a headcount figure for any group or for the company overall.