BROADCASTS.com

b'

Charles Ramsey. He\\u2019s the CEO of Sauce Labs and has been in that position since April 2015, and has served as Chief Revenue Officer from February to April 2015. Prior to that, he\\u2019s had 25 years of industry experience\\u2014he was a venture partner at JMI Equity and held a number of roles at Quest Software, including VP of marketing and sales.

Famous Five:

• Favorite Book? \\u2013 Finding Your North Star
• What CEO do you follow? \\u2013\\xa0 Elon Musk
• Favorite online tool? \\u2014 No
• Do you get 8 hours of sleep?\\u2014 No
• If you could let your 20-year old self, know one thing, what would it be? \\u2013 \\u201cI wish I\\u2019d become a CEO sooner in my career\\u201d

\\xa0

Time Stamped Show Notes:

• 02:27 \\u2013 Nathan introduces Charles to the show
• 03:03 \\u2013 Sauce Labs has just raised a significant amount, $70M
• 03:45 \\u2013 Sauce Labs has raised a total of $130M
• 04:04 \\u2013 Charles shares how they decide to raise capital
• • 04:14 \\u2013 Sauce Labs checked their ability for an acquisition
  • 04:42 \\u2013 Sauce Labs had great timing
• 04:54 \\u2013 Sauce Labs does automated testing in the cloud for web app and mobile devices
• 06:38 \\u2013 Sauce Labs\\u2019 market is about continuous integration and delivery
• 07:17 \\u2013 Sauce Labs is SaaS based with an annual subscription and self-service
• 07:58 \\u2013 Sauce Labs has invested in pre-sell and technical support
• 08:30 \\u2013 Average transaction fee is $50K annually
• 08:56 \\u2013 The fee varies from the number of parallel testings the customer wants
• • 09:20 \\u2013 The concurrency of 50
• 09:45 \\u2013 Sauce Labs is growing organically
• 10:11 \\u2013 Sauce Labs is an 8 year old company
• • 10:33 \\u2013 \\u201cThe founders started the company with the notion of automated testing from day 1\\u201d
  • 10:54 \\u2013 3 years ago, a number of ISVs realized that they wanted to leverage selenium
  • 12:03 \\u2013 One of the founders is still in Sauce Labs and all of them are still on the cap table
• 12:41 \\u2013 Team size
• 13:20 \\u2013 Sauce Labs currently has 3500 customers
• 13:58 \\u2013 Sauce Labs\\u2019 90-day post-transaction clause window
• • 14:17 \\u2013 Depending on the complexity of the environment, it can require professional services
  • 14:26 \\u2013 Charles shares what their technical team does
• 14:58 \\u2013 Average ARR
• 16:00 \\u2013 Average pay of self-serve customers
• 16:59 \\u2013 Valuation
• 17:46 \\u2013 Sauce Labs wants to focus on the enterprise companies
• 19:15 \\u2013 Gross annual customer churn
• 19:46 \\u2013 Sauce Labs is currently at net negative revenue churn
• 19:54 \\u2013 CAC
• • 20:00 \\u2013 Sauce Labs is doing paid marketing
• 21:20 \\u2013 The Famous Five

\\xa0

3 Key Points:

• Do your research\\u2014know what your customer wants and needs.
• Focus your energy on the strengths of your company.
• Take courage, take the leap.

\\xa0

Resources Mentioned:

• Acuity Scheduling \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Drip \\u2013 Nathan uses Drip\\u2019s email automation platform and visual campaign builder to build his sales funnel
• Toptal\\xa0\\u2013 Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn\\u2019t have to hire a co-founder due to the quality of Toptal
• Host Gator\\xa0\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
• Audible\\xa0\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
• The Top Inbox\\xa0 \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• Jamf \\u2013 Jamf helped Nathan keep his Macbook Air 11\\u201d secure even when he left it in the airplane\\u2019s back seat pocket
• Freshbooks \\u2013 Nathan doesn\\u2019t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
• Show Notes provided by Mallard Creatives