If you’re a business with a massive geographical footprint, it can be nearly impossible to track costs and performance across your various properties. Understanding occupancy, energy costs, and overall performance is difficult, yet critical for optimizing your bottom line.
Switch Automation is a smart building platform built to drive efficiency, sustainability and comfort. Their software integrates building data, systems and equipment to give you deeper insights into site and portfolio performance in order to help your team make effective, timely decisions to reduce operating and energy expenses.
How much is Switch Automation doing in MRR?
Switch Automation is a pure-play SaaS company that generates revenue with IoT gateways and their software products. They connect with building management systems and individual sensors to get a full picture of a property’s performance. They currently charge based on the number of buildings and data points with the average customer paying them between $10k and $30k each month.
According to CEO Deb Noller, Switch Automation is servicing 9k total buildings today across 20 to 30 total customers and is doing north of $200k in MRR at this point in time. The company is currently growing 35% year over year and expects to cross $500k in MRR at some point in 2019.
How much is Switch Automation paying in CAC?
With large, enterprise customers, the sales cycle has traditionally been long for Switch Automation. Noller noted that the company spends upwards of $150k to land a new customer over a 6 to 9 month sales process and a small proof of concept.
These large deals and long sales cycles enable Switch Automation to operate on a land-and-expand business model. Noller explained that a large portion of the company’s growth has come from expansion revenue within existing clients.
How much has Switch Automation raised?
Switch Automation has raised $6M in total outside capital with $3.8M coming in a Series A in late 2017. With 45 employees in Australia and the U.S., the company has yet to hit cash-flow positive and is burning cash right now.
Going forward, Switch Automation is looking to utilize their Series A to drive growth and hire a full-fledged sales team. Noller and the entire team is hopeful that their focus on growth and newly developed partnerships with help them more than double revenue in the next 12 months.