Janet Kosloff: In the pharma industry, they tend to do these very long tracking surveys. They’ll do them quarterly or maybe every other month. They’re very expensive. Brands could spend many millions of dollars on these tracking surveys. They take a long time to execute each wave and it takes a long time to analyze the data. By the time that data is incorporated into the decision-making process, it could be many months down the road. We’ve introduced something called a Micro Tracker into the market where in a very short survey, a client can track their key performance indicators every month.
Some of our clients do it every other week at the very beginning of their launch. They could really have their finger on the pulse of those metrics that are very important to them over time. We’ve developed functionality that takes the friction out of that with things like the ability to be able to set it and forget it, visualize wave over wave data, and slice and dice the wave by different responder groups. Adding products such as that has also increased the average purchase because folks now have the ability to use our solution for more things.
Sramana Mitra: What about metrics in 2015?
Janet Kosloff: In 2015, we did above $5 million.
Sramana Mitra: Are you going to hit $10 million this year or next year?
Janet Kosloff: Our goal is to exceed $10 million this year.
Sramana Mitra: Do you need more financing or are you staying with what you have?
Janet Kosloff: We are cash-flow positive and profitable right now.
Sramana Mitra: Fantastic.
Janet Kosloff: We’ve always been a very capital efficient business. One of the reasons why we were able to be so capital efficient is that our clients do pre-pay for their subscription. They’ll pay us upfront for an annual subscription. That has really helped us with cash flow. We’ve been very careful with what we invest in and what we don’t invest in. We’ve been able to keep the outside capital to a minimum. I don’t think it’s at a significant cost to growth.
Sramana Mitra: I don’t think so at all. You’re growing very nicely. I don’t think you’re trading growth for capital at all. I love the story. I love the way you’ve built the business. If you’re going to hit $10 million this year, that’s a very nice growth rate. If anything, you’ve accelerated your growth rate.
Janet Kosloff: We do have a recurring revenue model but we have a very high renewal rate. It definitely feeds on itself in terms of exponential growth.