Today’s news reveals the achievement of the Gong, a revenue prediction startup. Gong has surpassed $300 million in annualized recurring revenue (ARR). The company works to help other companies predict their revenue from potential sales. Gong’s milestone indicates a potential path to an initial public offering (IPO).
Gong Insights
Revenue prediction startup Gong was founded in 2016. The AI-powered startup, Gong uses AI to examine customer interactions. It helps companies predict their gross total from potential sales. The company has added generative AI capabilities to its work method. This move has caused its growth to soar high.
The startup is at its milestone as it surpassed a $300 million annualized recurring revenue (ARR). CEO Amit Bendov announced the company’s remarkable achievement on Wednesday saying: “We’re seeing great momentum. That’s why we’re excited to share the numbers.”
Company's Worth and Funding
In 2021, Gong was worth $7.25 billion. The company saw its value rising to the top when it made a $250 million Series E funding round. Franklin Templeton headed the funding in collaboration with Coatue, Salesforce Ventures, Sequoia, Thrive Capital, and Tiger Global.
Being at a value of $7.25 billion, the company stands at an estimated value of roughly 24 times ARR. This valuation sees Gong as one of the most watched largest AI companies. Anysphere, well known for making the AI-powered coding assistant Cursor, is in the list of valuations at 25 times ARR. The company has raised $100 million in ARR from low-single million within a year.
Gong's Growth Among Customers' Companies
Bendov has not disclosed Gong's revenue growth. He said it is in the range of "top-quartile public SaaS companies," with annual revenue growth rates between 25% and 56%. Gong has 4,500 corporate customers, including big names like Canva, Google, LinkedIn, and Square.
IPO Potential Path
Gong's current ARR and growth trajectory are a good sign of its potential IPO path. CEO Amit Bendov is of the viewpoint that the current ARR and growth trajectory are not in the works for 2025. Gong is nearly profitable and still has plenty of cash if raising another funding is concerned.
“[An IPO] is very interesting but not the most important thing. We are focusing on building amazing products,” Bendov said.