In the oil and gas world, optimization is extremely important. With massive budgets and returns, shaving just a couple of percentage points off costs can mean adding millions to your bottom line.
OAG Analytics was created to bring artificial intelligence and machine learning to the oil and gas industry in order to help optimize well production. Their platform uses cloud-based data management, advanced analytics, and data visualization to increase well output and minimize operational costs.
How much is OAG Analytics doing in ARR?
OAG Analytics is a pure-play SaaS product that charges oil and gas companies of varying sizes based on an annual subscription. The company’s plans range from $10k to $50k per month today, based on production size.
According to CEO Luther Birdzell, the company is serving between 5 and 10 total customers right now and is north of $600k in ARR. OAG Analytics has grown revenue 300% year over year since launching in early 2017.
What is OAG Analytics’ churn?
While still approaching the first round of annual renewals, OAG Analytics has yet to churn a single customer to date. Birdzell explained that, while their product is most valuable within the first 60 days of well production, optimization is a year-round process and he believes this will drive retention.
Customer acquisition for OAG Analytics comes in the form of a high-touch enterprise sale. To date, the company has paid anywhere from $5k up to $50k to land a new deal with this cost being associated with sales team salaries and travel expenses.
How much has OAG Analytics raised to date?
Overall, Birdzell would not disclose specifics behind venture capital for the company, but did note that they have raised less than $3M in outside funds to date. Going forward, the company is currently in the process of raising a Series A round.
OAG Analytics’ team of 20 full-time employees is based in Houston and distributed remotely. Things are looking up for this young startup playing in a massive market as they hope to continue their impressive growth into 2019 and beyond.