Company Update Q2 2015: Revenue dip, great NPS results, and the road ahead

We held our quarterly company update on Thursday, and here’s the high level overview.

We hired 6 full-time people into the Berlin office in the past quarter, and we’re looking to hire 5 more people globally in the next couple of months. We’re growing substantially, all fueled by our own revenues. Our new office is filling quickly and that’s amazing.

Finance. On track, but..

We’re on track for our goal of $3m revenue in 2015 and our pipeline is full, but due to our seasonal business and our terrific Q1 results, there’s a quite visible dip on our revenue chart. We always see more interest in the winter months than in summer, and we made 60% more than last year’s Q2. But still, we’re a bit sad the drop was this strong:

All-Hands_July_2015_public

Fortunately, our Monthly Recurring Revenue chart shows that the situation isn’t all that bad:

All-Hands_July_2015_public

Our MRR growth has stalled in June, but this has happened before, so we’re not worried. July has started out really promising, we made $130k in the first two weeks already. We have outstanding invoices of $155k, which means the pipeline is full. Our goal remains to make $3m in revenue this year, and we think we can still make it.

Net promoter score

We conducted a proper Net Promoter Score session in the past couple of months. We sent close to 900 emails to our HR and Admins at all our customers, and we achieved a 32% response rate. Our total NPS score is 30, which is pretty good. However, the NPS distribution is a bit uneven. If we take the two most extreme segments, we see a score of 40 with longer term clients with over 100 employees, but -9 with clients of less than 50 employees who have been with us less than 6 months. So there’s lots of room for improvements!

All-Hands_July_2015_public

Goals for Q3 and Q4

We need to improve the product faster. Our largest projects – the objectives overhaul – has been in the making for 7 months now. It’s going to be really awesome and will help us get new clients, but the project need to get wrapped up. Working on that. The new 5 developers are already shipping some features, and by the end of the year we should have significantly higher throughput of features and improvements. The main challenge is know when to stop, and to avoid gold-plating.

We need to reduce our churn. Retention of larger customers is around 92% annually, but we see 50% annual churn on customers of 30 employees and less. This is totally in line with the NPS mentioned above. We’re simply not the right tool for some of the smaller clients, and we need to get better at telling evaluators upfront if we’re not the right tool for them. We’re increasing our minimum spend to $150 per month, making it clearer that a small client shouldn’t choose us just because of our affordable pricing.

We need to get better at onboarding new clients, ensuring they are happy, that they get the most out of SI, and that we keep them on board. We’ve started a “Concierge”-experiment, calling all evaluators that seem to be a good fit, offering help and establishing a relationship early on, so they know we’re around to help in case they run into issues. The next step is to call new clients a month in into their purchase and offer help proactively. We have a few more ideas but it’s too early to tell.

Lots of work ahead, and Q3 won’t be a walk in the part. But what would life be without challenges!

Full presentation

Here are all the slides from the presentation in one piece: