ClickUp Breaks $85m ARR, “On Track for $200m in 2022,”

🌈 Abstract

The article discusses the rapid growth and success of the collaboration and productivity software company ClickUp, founded by Zeb Evans. It covers the company's financial performance, valuation growth, customer base expansion, and innovative product development strategies.

🙋 Q&A

[01] ClickUp's Growth and Performance

1. What are the key financial metrics and growth figures for ClickUp?

• ClickUp doubled its annual recurring revenue (ARR) from $75 million to $150 million in 2022
• The company is rapidly approaching a $10 billion valuation, up from $4 billion in late 2021
• ClickUp's monthly recurring revenue (MRR) has grown from $3 million in 2020 to $6.7 million currently
• The company's ARR has grown from $30 million to $85 million between October 2020 and December 2021
• ClickUp is on track to reach $200 million ARR in 2022

2. How has ClickUp's customer base and pricing evolved?

• ClickUp had around 100,000 teams during its Series A funding, which grew to 200,000 during Series B
• In 2022, 800,000 teams used the ClickUp productivity tool, and as of January 2023, over 1 million teams use it
• ClickUp has around 100,000 paying teams, with an average cost per seat of $10-$15
• The company's average revenue per unit (ARPU) has grown from $10 in 2020 to $85, and the annual contract value (ACV) is around $1,250

3. What are ClickUp's key metrics for customer retention and expansion?

• ClickUp has a 24% gross churn annually and a 75% expansion revenue annually
• The company's net revenue retention is currently 150%

[02] ClickUp's Founding and Product Development

1. What was the origin and initial focus of ClickUp?

• ClickUp was initially intended to be a Craigslist competitor, but the founders pivoted to a productivity app
• The company was founded using seed money from the founders' previous venture, a social media company called Fast Followerz

2. How does ClickUp approach product development and innovation?

• ClickUp has a "Zeb Team" dedicated to constantly creating new versions of the productivity tool
• The company releases new features and updates every Friday, keeping the app fresh
• ClickUp allows customers to try out new features for free, up to 100 times, before moving them behind a paywall

3. What were the key lessons the founder, Zeb Evans, learned early in his entrepreneurial journey?

• Evans wished he had learned to code earlier, as it would have made many of his endeavors easier
• He learned that even successful entrepreneurs are "just figuring it out as they go along" and taking big bets, rather than having a clear plan