In the software world, getting feedback on your latest features before they hit production can be critical to saving downtime and improving customer experience. If you can catch bugs before they are deployed, you can dramatically increase your product’s dependability in the eyes of your users.
test IO was created as software crowd testing service for companies in the development stages. Their network of human-powered QA testers supplies feedback on product functionality fast and helps give businesses additional confidence before they ship.
How much is test IO doing in ARR?
test IO is a pure-play SaaS company that charges its customers on a monthly subscription basis. They currently target companies with more than 100 employees and start pricing at around $3k per month. According to CEO Phillip Soffer, the average customer pays test IO around $4,500 per month at this point in time.
With 180 total paying customers, test IO is on track to cross $10M in ARR “soon”, explained Soffer. The company has grown revenue 60% year over year for the last 3 years and is driving growth mostly through new customer acquisition.
What is test IO’s churn?
Churn is critical in any SaaS business and test IO has placed focus on reducing churn within their customer segment. As of right now, the company has hit 100% net revenue retention annually within latest cohorts.
In terms of customer acquisition, test IO does not allocate any capital to paid marketing channels and instead focuses on landing new deals via their sales team of 20 full-time employees. Soffer noted that the company aims for a payback period of approximately 3 months and is hitting that mark today.
How much has test IO raised?
Founded 7 years ago by German founders, test IO raised $5M in outside capital back in 2015 which ultimately led to Soffer’s recruitment in 2016. Today, the company has no intentions of raising additional funding and has hit profitability at current state.
test IO’s team of 40 full-time employees is split between San Francisco and Berlin.