Social media marketing has continued its insane growth trajectory in 2018. And, according to Statista, social media advertising spend will balloon to approximately $48B by 2021.
Socialbakers is taking advantage of this ever-expanding vertical by creating an AI-powered social media marketing platform that helps companies better understand their audiences. Their suire helps brands discover audience personas, create engaging content for them, and identify the influencers they trust.
How much is Socialbakers doing in ARR?
Socialbakers is a pure-play SaaS product that charges its customers on an annual and monthly basis. They focus on serving mid-market and enterprise customers, with the average customer paying approximately $1,500 each month.
According to CEO Yuval Ben-Itzhak, Socialbakers is currently serving 2,700 total customers around the world and has hit $35M in ARR today. The company is growing revenue 25% year over year and is up from from $27M in ARR 12 months ago. Ben-Itzhak explained that growth can be attributed to both adding new customers and driving revenue expansion within their existing base.
What is Socialbakers’ churn?
On an annual basis, Socialbakers is currently exhibiting 90% gross revenue retention. When expansion revenue is factored in, the company is showing 120% net revenue retention each year.
In terms of customer acquisition, Socialbakers aims for payback within 12 months, Ben-Itzhak noted. The company is currently hitting this market with mid-market customers, yet is north of a 12 month payback period with their enterprise cohort. For mid-market customers, Socialbakers assumes a minimum LTV of $36k over the course of 36 months.
How much has Socialbakers raised?
Over 3 total rounds, Socialbakers has raised $54M in venture capital to date. With the latest round coming 3 months ago, the company has taken funding from Earlybird Venture Capital and Index Ventures.
The company’s team of 350 full-time employees is headquartered in Prague with additional offices in New York, Paris, London, Mexico City, and Singapore.