Intuit Pays $340m for TSheets Which Helps Over 1m Employees Manage Time Tracking

Tsheets.com CEO Matt Rissell poses for a portrait at their office April 1, 2015 in Eagle, ID. Photo by Daniel Berman for Google.

Matt Rissell the co-founder and CEO of TSheets which helps employees more efficiently do time tracking and scheduling software on the planet.

Matt has founded six companies, and he’s done it all from the unlikely tech hub of Boise, Idaho.

Sold for $340m on Dec 5th 2017 to Intuit

This interview was recorded on September 11th, 2017 when I asked Matt at minute 22:20:

“If Intuit writes you a $250m check to buy your company, do you sell?”

Matt replied “Nope!”.

On December 7th, less than 3 months after our interview, he announced that he sold to Intuit for $340m. Big congrats to Matt, his team, and his investors!

Backstory

Launched in 2006 and just failed the first few years. Matt put in $100-400k himself and just burned through it. In 2008 they were still less than $100k in ARR.

They didn’t start to “crack the code” until 2010. They realized that they were different from other time trackers in that TSheets was built for payroll (versus a “timer” which were other offerings on the market). Since then they’ve been doubling year over year, well over 100% each year between 2012-2017.

Pricing, Revenue, Economics

At minute 20:06 Matt replied “you’re good at math” when I multiplied 800,000 seats at $4/mo to get MRR of about $3.2m. This would be in addition to 50,000+ companies also paying a $16/mo base fee for another $800k in MRR putting total MRR in the $4m range ($40m ARR range).

Base fee per month is $16/mo for a team than an additional $4/mo per seat. A 4 person team would pay $32/mo. They haven’t touched pricing in over 4 years.

They’ve been cash flow positive since 2012. They have no intention of using the $15m Series A cash they raised in 2015.

Net revenue churn is almost negative and annual logo retention is above 80%.

Famous Five

Favorite Book: Lean Startup

CEO Mat is following: Brad Smith, Intuit (If he writes you a $250m check do you sell the company?) (minute 22:20)

Favorite online tool: Things (a to-do app)

How many hours of sleep: 6

What do you wish your 20-year-old self-knew? Matt is 40, married with 3 kids and wishes his 20 year old self-knew himself better and his propensity to take risks.