If you’re a large enterprise, there are strong odds that you have a massive marketing budget, allocated across a variety of channels. With Google AdWords, Facebook advertising, YouTube pre-roll, and the overall cornucopia of paid digital outlets, measuring success can seem daunting.
Pubvantage was designed as a unified solution to help businesses save time on ad serving and reporting. Their software offers best-in-breed tools for efficient management of digital advertising operations and provides unification across all channels, screens, and reporting.
How much is Pubvantage doing in MRR?
Pubvantage is a pure-play SaaS business that charges its customers based on advertising impression volume. Overall, the company plays in the enterprise space with the average customer generating around $4k in revenue each month.
To date, Pubvantage has grown to serve 30 total customers and is doing around $120k in MRR right now, according to CEO Declan Carney. The business has scaled revenue 30% year over year and is up from $90k in MRR twelve months ago.
What is Pubvantage’s churn?
While a majority of the company’s growth has come from landing new customers, the business is still exhibiting revenue churn among their existing clientele. At this point in time, Carney explained that Pubvantage is churning 10% of their revenue each year.
Marketing has not been a huge focus for Pubvantage thus far and the company has been acquiring new customers via word of mouth, their outside sales team, conferences, and networking. On average, they pay $24k in CAC and expect payback within 6 months.
Why is Pubvantage looking to sell?
Launched in 2015, has scaled fairly quickly by addressing a massive pain point of advertisers. Through this process, the founding team identified a larger opportunity in the advertising analytics space and has been developing another SaaS product in parallel.
Going forward, Carney mentioned the founding team is in the process of shopping Pubvantage to potential buyers, spinning out their analytics tool, and will reinvest the capital from the sale back into the new entity. They will look to price the new product at around $6k per month and will inject capital into building out a sales and marketing team.
Carney noted that companies in this space can expect a valuation between 3x and 10x of current ARR and that Pubvantage is looking to fall within that range.
Pubvantage’s team of 23 full-time employees is remotely distributed with offices in New Jersey and Canada.
