Tomer launched Yotpo in 2011 and after a failed first product and $14m raised, pivoted in 2014.
Since then, he’s launched 4 products that help eCommerce brands drive loyal customers who buy more product.
He’s mastered cross selling where 57% of his 4000 customers use more than 2 of his products and 42% use more than 3.
Because of his teams unique ability to drive cross product adoption, he’s getting ready to use the $50m in his bank account to acquire a new product line.
Today, his net burn is $1,100,000 per month with plenty of runway.
Much of this burn goes towards his 340 team members of which 100 are focused on engineering.
The engineering team is involved in all parts of the business including the free integrations they’ve launched in key distribution channels like WooCommerce, BitCommerce, Shopify, and Magento which have brought in 60k free users.
These then upgrade into 3 customer cohorts. Their SMB tier pays $15k on average and 3 sales development reps handle booking meetings for 2 Account Executives.
Once the deal is closed, its passed to Customer success reps who manage $1.1-$1.8m in total ACV.
If CSM’s drive expansion on their $1.8m book of business, they’re rewarded with commissions.
In their mid market tier, gross revenue churn is 1% and expansion is 44% leading to net revenue retention of 144%.
The engine is working but its taken a lot of capital to get here with over $100m raised.
The only question now is, which company are they about to acquire and will his makeup beauty guru customers continue feuding on YouTube?