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  • 2 days ago
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00:00So, the money. Why do you need it, Eric?
00:02Oh my gosh. Well, a couple of things. First, thank you so much for having me today.
00:07It was a joy.
00:08We were incredibly excited to raise the funds for a couple of reasons.
00:11First, the business is growing even faster at scale.
00:14Ramp's customer base and the revenue we're doing has more than doubled over the past year.
00:19And we find in the times we're living in right now, the opportunity to invest in bringing AI to businesses around the world,
00:26to automate expense reports, make it easier to run a business, and also invest further in this growth,
00:30made it an easy choice to invest and serve more customers faster.
00:33Okay, because there has been so much fits and starts of how much generative AI is actually leading to productivity.
00:40Many worrying about the 95% of pilots that aren't working according to MIT.
00:44So, what's working for you?
00:45How are you showing that this is really building productivity or time management allocation
00:51where people can do the work they want to do, not just file expense reports?
00:54Something that's so unique about Ramp is we measure our own success by how much less money we've helped customers spend.
01:00And what we find is that the average customer that adopts Ramp is able to reduce their spend by about 5% per year.
01:06And the median customer using Ramp is growing their revenue by about 12% per year,
01:11which is more than double the U.S. national average.
01:14I think that uniqueness on ROI, on actually showing companies where they can cut out spend,
01:20how they can automate expenses, separate us, and I would argue makes us part of that 5% in that study
01:27where people are finding AI is actually very, very useful.
01:29Are they actually demanding real detail?
01:31I loved some of the notes that I got that your treasury agents moved $5.5 million of idle cash into 4% investments.
01:37Your policy agent prevented $511,000 out-of-policy transactions.
01:41Is that the granularity that people want to see?
01:42Yes, it is, because I think for a lot of companies, really they're looking to understand,
01:48okay, I know that time is money.
01:50If you're a company, every hour that you're paying someone, let's say, to do their expense reports,
01:53it's an hour that they're not selling the next customer, reporting on the news,
01:57whatever really drives value to that business.
02:00And Ramp being able to show this was attempted spend that on a different type of program would have gone through.
02:05This is time your people would have been doing these low-value tasks instead.
02:09That's automated.
02:10The spend didn't occur in the first place.
02:12The categorization is done for you.
02:14It makes a real difference.
02:15And for a CFO, I think is really all that matters.
02:19It's about the bottom line, and that's what we deliver.
02:21And it matters to the CEO because they want time allocated in a different way.
02:24I saw that Brett Taylor of Sierra and also the chairman of OpenAI was quoted saying,
02:29you know, his talent are therefore better placed to be working on the agents he wants to build,
02:33not filing expense reports.
02:35But you talk about that 12% average revenue growth of your customer base.
02:38Is that because you are serving companies like Sierra startups rather than the Fortune 500 or the bigger kind of companies that perhaps don't have the revenue growth that startups do?
02:48It's a great question.
02:49First, you know, I like to believe the most disciplined and well-run companies, of course, will be adopting, we think, the most cutting-edge tools in the market, which is RAMP that helps people just run leaner.
02:59But I think the majority of our customers, by a long shot, are actually traditional businesses, farms, nonprofits, restaurants, hospitals, traditional businesses that you would not expect in many ways to be cutting-edge adopters.
03:13For them, they're looking for easier-to-do expense reports.
03:16You know, you might be used to, you know, it's the worst hour of your month doing expenses.
03:19For them, they tap a card.
03:21It does itself.
03:22They upload an invoice.
03:24Our OCR will go and automatically categorize the transaction, set the payment date to the date it's actually due so you're not losing a dollar out in interest, and then categorizing the transaction for you.
03:35And so I think, you know, when you look at the type of businesses, these are leaders like CBRE, Shopify, the Boys and Girls Clubs of America, businesses of all shapes and sizes, I actually think are looking, especially in these times, to get more from every dollar an hour.
03:48Your venture backers are a who's-who list, basically.
03:51Lightspeed has led this financing, but you've got Koto, Avenir, Thrive, you've got Founders Fund, so many of them continuing to back you.
03:57But I want to go to the talent side, because there was an opportunity for your employees to tender their shares.
04:02How many did, or how many are holding on, thinking $32 billion isn't the end of it?
04:08People at Ramp are very, very excited about the momentum.
04:10I mean, just to give you some context, Ramp is now larger than the median publicly traded SaaS company.
04:17And our gross profit, which is a great measure of our profitability, is growing 10 times as fast.
04:22And so, no doubt, I think people are very, very excited.
04:25There's a lot more to deliver.
04:27The process is ongoing, but for us, whether an employee chooses to sell or not to sell, it's very valuable, especially in building a public company, to know that you have the option, that you can say yes or no to selling some shares.
04:40And we think that's a great thing.
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