Piwik PRO continues to rise as one of the best alternatives to Google Analytics.
- Privacy-friendly analytics platform reaches a new milestone with $6.3 million annual recurring revenue (ARR)
- More than 200 corporate clients use Piwik PRO’s business tools
- The platform comes with easy-to-use features and maintains high-level data accuracy
The platform is reaching new milestones in its phenomenal journey in the highly competitive business tools space. Businesses of varying sizes sign up to the platform to take advantage of its privacy-friendly, easy-to-use, and accurate analytics tool.
As a result, the company is witnessing a boost in its fortunes, exemplified by the significant increase in its monthly and annual recurring revenues. The appeal of its business-oriented solutions stems from companies’ need to access accurate analytical data in restricted member areas without compromising users’ privacy.
Founded in 2013, the company has a customer acquisition cost (CAC) of $7,000. In turn, its client base pays reasonable prices to access various business solutions, including analytics for web and mobile. In addition, clients also access SharePoint analytics and analytic solutions for product teams.
Key benefits for signing up to Piwik PRO’s on-premises and cloud analytics suite include HIPAA compliance, access to the single customer view, tag management, and privacy compliance.
According to Jarek Miazga, Piwik PRO Product Manager, the company strives to provide clients with greater flexibility when exploring data. The platform achieves this objective by introducing advanced features and functionality, such as user flow and funnels. In turn, these features enable customers to glean critical insights by mapping the customer journey.
The platform also offers access to segments and filters that reveal key information on a more granular level. Piwik PRO’s business solutions make it easier to create advanced reports and charts within a few seconds.
Piwik PRO Achieves an Average Annual Recurring Revenue for Contracts of $20,000
In a recent interview, CEO Maciej Zawadzinski revealed that Piwik PRO’s average contract ARR stands at over $20,000, thanks to the midsize and large companies signing up to the platform’s Core and Enterprise plans. This figure contributed to a monthly recurring revenue of more than $500,000 compared to $400,000 from the previous year (2020). The increase in MRR is impressive considering that the company is still growing its customer base and workforce.
Zawadzinski noted that a combination of new and existing clients helped the company achieve an impressive growth rate. On the other hand, the net revenue retention stands at 110 percent and the platform’s management team predicts that the rate will continue to improve in the coming years.
The annual gross churn rate came out at 10% as it capitalized on its midsize and large corporate clients. Most of Piwik PRO’s clients are active in the healthcare and government sectors. Other clients include Fortune 500 companies.
When it comes to upselling numbers, Zawadzinski could not provide the actual rate in an interview conducted by Nathan Latka. Piwik PRO upsells an additional module to existing customers. He stated that the platform employs a pricing model based on volume and generates significant revenue.
Piwik PRO Enhances Capital Efficiency After $3 Million Funding
Supported by investors like Warsaw Equity Group and Tim Schumacher, the team at Piwik PRO works tirelessly to enhance its capital efficiency and overall growth potential. The efforts are paying off, as demonstrated by a significant increase in the annual recurring revenue.
Zawadzinski revealed that his company generated additional funding from its product and service business activities. The bootstrapped amount reinvested from profits is two million, which became part of the total capital raised from other sources. External investors helped the business raise a substantial amount of money in 2017.
The services business contributed the funding because it was generating approximately $1.5 million in profit annually. This business unit continues to grow and its future looks bright, thanks to a growing customer base and a high demand for business services. Meanwhile, the product component (Clearcode) of the business focuses on developing digital products, such as custom advertising and marketing technology (AdTech and MarTech).
Today, equity ownership at Piwik PRO is as follows:
- Chief executive officer Maciej Zawadzinski owns 40 percent
- Former founders own 30 percent
- External investors: 20 percent
- Employees: 10%
Implementing the Freemium Model to Accelerate Growth and Reduce CAC Below $7,000
Zawadzinski and his team believe that the freemium model will yield a substantial upside potential for the business. By demonstrating the company’s impressive growth potential, the team hopes to attract more funding from investors to accelerate growth. This approach could work well as a bridge between current funding requirements and series B.
On the other hand, the freemium model can help the company reduce the customer acquisition cost to below $7,000, boosting its bottom line.
Piwik PRO’s customer acquisition cost onboard customers that pay at least $2,000 a month. According to Zawadzinski, CAC has remained the same for some time due to a pause in ramping up spending on sales and marketing efforts. He noted that the SaaS company relies mainly on organic channels and inbound marketing campaigns.
Seeking Business Finance Options at an Interest Rate of Below Eight Percent
Zawadzinski believes that an interest rate below eight percent would be highly attractive if his company secures credit. He added that the debt would be convertible in the event that the company fails to repay.
For debts with an interest of 10% and above, Zawadzinski says his team would only consider taking such an offer if there were no stringent terms attached to it. He also revealed several loan offers from various third parties, including a financial institution, several companies, and existing investors.
A good deal enables the SaaS platform to break even and sustain the growth trajectory seen in the past few financial years. Taking a business loan with a financial institution requires a substantial amount of money in the bank. Zawadzinski confirmed that Piwik PRO has close to two million dollars in its business bank account, making it possible to borrow from the bank.
Once the business secures the loans, Zawadzinski and his team intend to spend the additional funds towards sales and marketing. Piwik PRO employs eight salespeople entrusted with the responsibility to bring in new business. This number contrasts significantly when compared to the 100 engineers who develop the business tools and maintain them.
Zawadzinski also serves as the company’s interim head of sales, allowing him to interact directly with clients. The entire team works tirelessly to attain specific quarter targets.
Piwik PRO’s $70 Million Valuation and Track Record
The company’s focus on privacy and high growth potential attracted several awards and recognition, including Technology Fast 50 (2018 CE Laureate).
Although Piwik PRO opened its door to customers in 2013, Zawadzinski and his colleagues have worked in the advertising and marketing sector for more than 10 years. Over the years, the platform evolved into an advanced proprietary business tool.
The platform’s engineers are working tirelessly to improve the product. This approach should boost the company’s valuation, which currently stands at $70 million. Introducing a freemium model bolsters the companies ability to attract new users looking for a privacy-friendly analytics platform.
Piwik PRO’s team of 100 employees collaborates every day to make things happen. It is no surprise that it attracts a wide selection of clients in various sectors, including healthcare, finance, insurance, and government. The platform attracts clients who prioritize data protection. With Piwik PRO, corporate clients leverage useful insights from protected data sources while safeguarding customer information. Clients operate in more than 40 countries and over 20 industries.
Corporate clients use the analytics suite to deliver improved digital products and enhance user flow and performance by relying on attribution reports and segment comparisons. The best part is that companies can analyze data stored in secure or restricted member areas. This capability differentiates Kiwik PRO from Google Analytics and other prominent platforms.
Thus, product managers make informed decisions based on a clear picture of the customer journey. It is no surprise that many corporate clients use the platform to shape the product roadmaps and fix any issues. The platform is a viable solution even for the most demanding industries like healthcare, insurance, telecoms, government, and finance. Kiwik PRO’s corporate clients find it easier to comply with the strictest privacy and security compliance requirements, such as HIPAA.