Raja Mukherjee
Appearances
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
Hi, Alex. My name is Raja Mukherjee, and I run a cybersecurity company. We sell cybersecurity analytics. Specifically, we catch hackers in large organizations. Primarily sell to the Fortune 1000, Global 2000. Specific focus on financial services, nation states, and retail. Last year, we did $304 million of top line.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
And our gross margins are about 88%. Our net operating margins are lower, primarily because we have significant costs in terms of sales and marketing and what have you. There's a lot of infrastructure on the back end there. Even though the delivery costs are low, the sales and marketing efficiency is not there.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
We'd like to get to about $500 million of revenue in about a year and a half from where we are, and that's recurring. What's stopping us is that we're sort of addicted to those large deals. Take a look at our average deal size. We're talking about about $536K for average deal size today. And what that really causes is it causes a significant amount of lumpiness in the business.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
Moreover, there's a lot of platformization in terms of what we have in terms of the technology. And what I mean by that is we tried to do a land and expand sales model. We sold smaller amounts, if you will. We tried to transact those and tried to upsell. But ultimately, we have elephant hunters on our enterprise sales team who just go and sell the entire fleet of products in one shot. Nine months.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
It's nine months or bust. Really what's happened over here, though, is that this is a fundamental risk to the business. It's very, very lumpy. And sometimes a quarter will either make the quarter or lose the quarter based on one deal. And this is particularly frustrating right now because we've sold the company twice. We sold it from VC to PE and then from another PE to another PE.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
And now we're looking at the third exit in the next year and a half, which is why we have the $500 million ARR target. Any suggestions as to how to take an established model where we have various covenants and add a minnow or basically a land expand motion without disrupting the existing enterprise sales motion?
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
18 years. Feels like 18.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
It's not so much. So basically, we reinvest a significant amount in growth. So for example, we have 204 salespeople in the company today. And what we generally have been trying to do is rather than optimize on the operating margin, we've been reinvesting into the business. So we have sales capacity for the next year.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
We have now, we've recently moved from Covenant, basically our leveraged Covenant moved from ARR to EBITDA as it's actually, it's moving next end of this year. So we're preparing for that right now.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
That's right. So we've moved, we've actually moved from negative EBITDA to $37.6 million of EBITDA this year.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
I think that's our sense as well. We were looking at doing an inorganic acquisition there. The catch is also one of them, maintaining the culture of that acquisition. That's going to be such a distraction.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
So as I mentioned, the sales, I'm not happy with that sales cycle either. It's about nine months.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
So in general, so right now we have about 40 customers with ARRs of over a million. Our total customer count is approximately a thousand today. Got it. And so we'll add a net new this year of about 150 customers.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
So we have a long tail. So we raised prices recently. Now we're looking for larger deals. The average deal size has increased as we've grown the company.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
Yeah. Yeah. So yeah, we have, we have a CRO on that team. Like again, he's the incentive on again is completely revenue based. Yeah. So really... My concern more than anything else is, and I keep on hearing this, and this is a topic that we have fairly frequently, it ain't broke, so don't try to fix it.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
I look at it, I'm not happy with the way. I mean, when we started this company, the goal was, it was less about revenue and more about ubiquity. We said, okay, we have the solution that can get everywhere. And as we sort of learned, got wedded to the teat of the big deal. It's been hard to break that habit.
The Game with Alex Hormozi
The Fastest Way to Grow Is Simpler Than You Think | Ep 887
I appreciate it. Thank you very much.