After the 2008 financial crisis, the government came down hard on the real estate industry, in particular, with the Dodd Frank Consumer Protection Act. Virtually overnight lending officers were faced with intense regulations and compliance measures, burdening them with new complicated record keeping processes.
Fortunately for them, LBA Ware was built to drive innovation in mortgage lending and banking operations. Their software helps lenders and banks optimize their business by automating proven processes with cutting-edge technology.
How much is LBA Ware doing in ARR?
LBA Ware provides back office products as a SaaS solution, billed annually. Their business model features a flat subscription fee, as well as a $3 to $10 processing fee per loan executed on their platform. Their average customer pays them approximately $40k annually, in total, today.
According to CEO Lori Brewer, LBA Ware is serving 50 paying customers and is doing $2M in ARR right now. The company is growing roughly 25% year over year and is up from $1.6M in ARR 12 months ago.
While the real estate and mortgage industry has experienced turbulence in the last year and has an uncertain future, Brewer is confident about LBA Ware’s future. She explained that their pipeline is more healthy than ever at present and detailed their ability to provide measurable value as a tool for stickiness.
What is LBA Ware’s churn?
Founded over ten years ago, LBA Ware has yet to churn a single customer to date. The company plans to experiment with new pricing tiers in the new future, but has grown to scale with a land and expand model.
In this enterprise space, sales cycles have been traditionally long for LBA Ware. The company currently spends $25k in CAC over a 6-12 months sales cycle. With on-boarding fees and other expenses, Brewer noted that the company doesn’t receive payback until after year one.
How much has LBA Ware raised?
LBA Ware has grown to $2M in ARR without any outside funding thus far. Despite the struggles of being a completely bootstrapped entity, Brewer is proud of the company’s slow, sustained growth.
Going forward, LBA Ware’s team of 25 employees headquartered in Atlanta is focused on creating new products and features in order to drive expansion revenue within their existing customer base. Brewer vehemently denied interest in raising capital or selling the company today and is excited about future growth opportunities.