SaaS: With $70m Raised, White Board Videos Secret to Vidyard 2x YoY Growth

Michael Litt

In Episode #810, Nathan interviews Michael Litt. He’s the co-founder and CEO of a leading video marketing platform called Vidyard. While he’s not bringing leading video-based technologies to market, he serves as general partner at Garage Capital, a seed stage fund focused on supercluster companies looking to expand their networks in the Silicon Valley. He also sits as Communitech’s board of directors, a KW-based organization designed to help companies start, grow and succeed.

Famous Five:

  • Favorite Book? – N/A
  • What CEO do you follow? – Shannon Stubo
  • Favorite online tool? — Coinbase
  • How many hours of sleep do you get?— 5
  • If you could let your 20-year old self, know one thing, what would it be? – You need a big support network and focus your energy into building a business

Time Stamped Show Notes:

  • 01:41 – Nathan introduces Michael to the show
  • 02:16 – Michael was in Episode 414 of The Top and back then, they only had 132 people on their team
  • 02:30 – Vidyard now has around 250 employees
  • 02:38 – Vidyard has 3 offices
  • 02:44 – Vidyard has launch multiple products including a self-serve product called Viewedit
    • 03:13 – Vidyard just had 100K users sign up after launching Viewedit, which is free
    • 03:33 – It’s currently a chrome extension
  • 04:22 – Michael shares how they spent their last amount that was raised
    • 04:51 – Vidyard had their series C in January of 2017
    • 05:30 – Michael believes that the CFO should be the “house of no”
    • 06:00 – Everybody should be accountable for their finances and Vidyard uses Adaptive Insights for budgeting
    • 06:43 – Vidyard has to be very careful with their lifeline and maintain their cash flow
  • 07:23 – Michael’s goal as the CEO
  • 08:39 – Vidyard’s RPU has grown over time
  • 08:53 – Target for upsell is 30% of net new revenue
  • 10:03 – Annual logo churn
  • 10:13 – Net retention
  • 10:42 – Over thousands customers are using Vidyard’s platform
  • 10:57 – Viewedit is being used in tons of organizations
  • 11:46 – Michael believes Vidyard will double, year over year
  • 13:00 – Streaming cost for Vidyard
    • 13:11 – Vidyard streams over 50M videos a day
    • 13:15 – Vidyard subscribed on the Netflix model
  • 14:41 – Weirdest strategy Michael employed to get new customers
    • 15:08 – The strategy was inspired by Gary Vaynerchuk
    • 17:17 – Michael shares how they were able to get customers from companies in other countries
    • 19:10 – New CMOs in a company are one of the best target customers, so Michael looks out for new CMOs announcements
  • 19:54 – Payback period is usually 18 months
    • 21:02 – Payback period reflects your company’s status
  • 21:20 – CAC
    • 21:35 – Michael is also looking into zero-cost marketing
  • 22:09 – Michael won’t sell Vidyard to Salesforce, even with a $300M offer
  • 22:55 – The Famous Five

3 Key Points:

  1. Use your funds conservatively and make everyone accountable for budgeting.
  2. How your company is doing reflects on your payback period.
  3. Make sure you have a big support network in place.

Resources Mentioned:

  • Simplero – The easiest way to launch your own membership course like the big influencers do but at 1/10th the cost.
  • The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
  • GetLatka – Database of all B2B SaaS companies who have been on my show including their revenue, CAC, churn, ARPU and more
  • Klipfolio – Track your business performance across all departments for FREE
  • Hotjar – Nathan uses Hotjar to track what you’re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
  • Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
  • Host Gator– The site Nathan uses to buy his domain names and hosting for the cheapest price possible
  • Audible– Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books
  • Show Notes provided by Mallard Creatives