G2 Will Break $100m ARR This Year, not from reviews. Guess their 2 new lines of business

Summary

In this insightful interview, CEO Godard Abel discusses the success of G2, a review platform that reached a $100 million revenue milestone and a $1.1 billion valuation in 2021. With over 100,000 software products listed across 2,000 categories, G2's dynamic taxonomy is key to its growth. The spotlight is on G2 Track, a new product aimed at helping businesses manage their SaaS and cloud expenses efficiently, especially during economic downturns. With a strong community of vendors and a dedicated research team, G2 continues to innovate and expand its offerings.

Takeaways

• 🚀 G2 is a review website turned into a $100 million business, founded by CEO Godard Abel in 2012.
• 📈 G2 reached $100 million in revenue in the previous year, achieved a $1.1 billion valuation in 2021, and has raised a total of $240 million to date.
• 👥 The company has a team of over 936 full-time employees.
• 📊 G2 has 2,000 software categories and lists over 100,000 software products, with a 48% growth in listings over the past 12 months.
• 💡 G2's new product, G2 Track, helps CIOs and CFOs track their SaaS and Cloud spend, which is particularly relevant during economic downturns.
• 🔗 G2 Track works by API, integrating with financial systems like NetSuite and QuickBooks to analyze spending and usage data against the G2 database for insights.
• 💼 G2 Track offers both free and paid versions, with the paid version providing additional features such as API integration with enterprise systems and contract conversion services.
• 🔑 The success of G2 Track relies on convincing founders and CFOs to connect their data, leveraging the extensive database of G2.com.
• 🌐 G2's dynamic taxonomy of over 100,000 SaaS products listed in 2,000 categories is a key asset for G2 Track and a challenge for CIOs and CFOs to manage.
• 📈 G2 is expected to break through the $100 million ARR mark by the end of the year, a significant milestone in the SaaS industry.
• 🌟 G2's taxonomy is so valuable that it's licensed to partners like ServiceNow and is used by some of the world's leading SaaS investors for market analysis.

Q & A

What is G2 and what does it specialize in?

G2 is a leading business software review website and marketplace, co-founded by Godard Abel in 2012. It specializes in providing software reviews and has expanded to offer a product called G2 Track, which helps businesses track their SaaS and cloud spend.

What significant milestones has G2 achieved in terms of revenue and valuation?

G2 achieved $100 million in revenue in the previous year, broke a $1.1 billion valuation in 2021, and has raised a total of $240 million to date.

How many full-time team members does G2 have?

G2 has over 936 full-time team members.

What is the significance of the number 2,000 in G2's context?

There are 2,000 software categories on G2, which indicates the breadth of the software market they cover.

How many software products are listed on G2 and what was the growth rate over the past 12 months?

Over 100,000 software products are listed across categories on G2, with a 48% growth in listings over the past 12 months.

What is G2 Track and how does it benefit businesses?

G2 Track is a product that helps CIOs and CFOs track all of their SaaS and Cloud spend in real time. It provides data benchmarks and helps companies identify areas where they can save money or fill gaps in their tech stack.

How does G2 Track differ from other expense management tools?

G2 Track focuses on providing data benchmarks and operates through API integration with financial systems. It differs by offering insights based on the G2 database, helping companies assess their tech stack and spending more effectively.

What is the business model for G2 Track?

G2 Track operates on a SaaS subscription model, with a free version for startups and a paid version that offers additional features and API integrations for enterprise systems.

What additional services does the paid version of G2 Track offer?

The paid version of G2 Track offers API integrations with more enterprise systems like NetSuite and OCTA, as well as a contract conversion service to help companies manage key contract terms proactively.

How does G2 ensure accurate taxonomization of the thousands of software companies listed on their platform?

G2 works actively with software vendors to ensure proper classification across categories. They have a research team of about 50 people who collaborate with vendors and continuously update the taxonomy to reflect new products and categories.

What is the significance of G2's dynamic taxonomy for both vendors and investors?

G2's dynamic taxonomy is an essential tool for software vendors to ensure they are discoverable by potential buyers and for investors to make sense of the market, understand competitors, and identify adjacent markets.

How does G2 plan to achieve its goal of breaking the $100 million ARR mark?

G2 is growing well and is confident about reaching the $100 million ARR mark by the end of the year, supported by the expansion of their product offerings like G2 Track and the continuous growth of their platform.