Gong, a startup that helps corporations predict their income from potential gross sales, has surpassed $300 million in annualized recurring income, the corporate introduced on Wednesday.
Since its founding in 2016, Gong has used AI to research buyer interactions. The addition of generative AI capabilities lately has helped to gasoline the corporate’s development.
“We’re seeing nice momentum. That’s why we’re excited to share the numbers,” Gong CEO Amit Bendov advised Trendster.
Gong was final valued at $7.25 billion when it raised a $250 million Collection E in 2021 in a deal led by Franklin Templeton with participation from Coatue, Salesforce Ventures, Sequoia, Thrive Capital, and Tiger International.
Many corporations funded in 2020 and 2021 acquired inflated valuations relative to their income and have since struggled to justify them.
Assuming that Gong remains to be valued at $7.25 billion, the most recent ARR determine implies that the corporate is now valued at roughly 24 instances ARR and places Gong in the identical bucket as a number of the largest, most watched AI corporations.
However Gong’s valuation should be elevated relative to sure newer, exceptionally fast-growing AI startups. For example, Anysphere, the maker of the AI-powered coding assistant Cursor, was just lately valued at 25 instances ARR. Anysphere reached $100 million in ARR from low-single tens of millions in lower than a yr. (Buyers usually assign larger valuation multiples to startups with sooner development charges.)
Though Bendov didn’t share Gong’s income development, he stated it’s within the vary of “top-quartile public SaaS corporations.” (The Bessemer Ventures Cloud Index signifies that high cloud corporations have annual income development charges between 25% and 56%.) It counts amongst its 4,500 company clients’ corporations like Canva, Google, LinkedIn, and Sq., Bendov stated.
Gong’s present ARR and development trajectory doubtless places the corporate on the trail to IPO, and Bendov admitted {that a} public providing can be an vital milestone however stated it’s not within the works for 2025. “[An IPO] may be very attention-grabbing however not a very powerful factor. We’re specializing in constructing wonderful merchandise,” he stated.
If not an IPO, as for elevating one other spherical from enterprise sources, Bendov stated that Gong is sort of worthwhile and nonetheless has loads of money from its 2021 spherical. “We virtually haven’t touched it.”
