Aptem, a vocational training platform that helps companies in the UK train more employees more efficiently and comply with regulations, is making strides in its market. By leveraging technology and delivering relevant training, the platform is helping businesses increase productivity and profits. In this article, we uncover how the platform has grown to over $8 million in revenue and what the future holds for its development.
Key Growth Metrics and Insights
A team of 120 with 70 engineers
$8m ARR in 2023
Launched in 2009, and hit $5.5m ARR in 2021
Provider of an online SaaS platform intended to provide employability and vocational training programs used to manage delivery and support service recipients. The company’s platform delivers vocational training and employability training as flexibly and simply as possible and is designed to improve quality, save costs, and automatically meet compliance rules, enabling welfare to work providers, further education colleges, housing associations, training companies, and outplacement firms to deliver better service, achieve superior outcomes and ensure compliance.
Richard Alberg, a serial entrepreneur passionate about technology’s impact on human capital, is Aptem’s driving force. Knowledgeable in vocational training regulations in the UK, Richard noticed a business need that converted into a significant opportunity. His vision, combined with a keen understanding of the market, led to the creation of a robust platform capable of transforming how businesses develop their employees.
Scaling Up and Hitting Their Stride
In less than five years, Aptem has grown from a single customer to a client base of nearly 170, including 40 UK universities. On average, these customers pay $40,000 per month for the platform’s services. They’ve been able to multiply their income through their software rapidly and reported approximately $8 million in revenue this year, marking a 20% increase from the previous year. Their customer retention is incredibly strong, with a revenue basis churn of just 2.3%.
Overcoming Challenges and Growing Through Them
Despite its successful growth, Aptem faced significant challenges as the company scaled up. While adding new customers each month contributed to their growth, the large-scale nature of their client base presented issues. The increasing size of their customer base meant larger volume discounts, which had some impact on their profit margins.
Their pricing is based on the number of learners per month, which means their revenue strongly depends on whether their clients experience growth. On top of that, their market is competitive and influenced by many macro issues. Yet, through continually increasing their market share, they’ve managed to turn these challenges into opportunities for growth.
An Eye for the Future
Aptem’s journey has been marked by growth, overcoming challenges, and pushing the boundaries of what’s possible. Their goal is to hit around $9 – 10 million of revenue next year. They’re also looking at branching out by offering additional services for their existing customer base.
With a dedicated team of 120, including 70 individuals focused on product development and five sales representatives, Aptem’s focus remains on refining its platform and enhancing the value it offers to customers.
Aptem is a testament to the possibilities that open up when a clear vision meets industry expertise and innovative technology. As they continue to grow and expand, we’re likely to see even more success and greater progress in transforming vocational training in the UK.
CEO he’s following: Satya Nadella
Favorite book: Coming Wave
Favorite online tool: Mindmanager
Balance: Gets 6 hours of sleep every night, married, 2 kids.
What does he wish he had known at 20? The Importance of Delegation