Yammer CEO David Sacks dropped by TechCrunch today to talk about corporate and sales milestones. The “Twitter for enterprise” startup, which won TechCrunch50 in 2008, continues to grow nicely.
Yammer now has 70,000 corporate clients, and 800,000+ total seats (users). At least 1,000 of those companies are paying for the product, and Sacks says 10%-15% of seats are converting to paid. 70% of Fortune 500 companies are using Yammer, says Sacks. Paying customers include Cisco, Nationwide, AstraZeneca, Alcatel-Lucent, Sungard and Molson Coors.
Revenue in 2009 was “seven figures.” I asked Sacks to narrow that down in the video but he refused. He does say that Q1 2010 revenue exceeded all of 2009 revenue, and that revenue is now doubling every quarter. Yammer’s revenue goal by end of year is to be at a $10 million annual run rate.
So what about Salesforce’s Chatter product, which directly competes with Yammer? Sacks says he’s not worried. Chatter is still in beta, but will likely cost at least $50/month/user. Yammer, which only charges $3-$5/month/user, can compete on price alone very well, he says.
Yammer has raised $15 million in two rounds of financing.
Yammer is an enterprise social network, providing a secure way for employees to communicate, collaborate, and share information. The company was founded by David Sacks formerly the COO of PayPal. Yammer grew out of the genealogy app Geni as a way for organizations to communicate. Employees using Yammer can discuss ideas, post news, ask questions, and share links and other information. Yammer also serves as a company directory in which every employee has a profile and as a knowledge base where...
David O. Sacks is the Founder and CEO of Yammer, Inc. Sacks was previously the COO of PayPal until its acquisition by eBay. Subsequently, he founded Geni.com, a family tree building and networking website. He also produced and financed the hit movie Thank You For Smoking. He has a B.A. in Economics from Stanford University and a J.D. from the University of Chicago Law School.
Salesforce is an enterprise cloud computing company that provides business software on a subscription basis. The company is best known for its on-demand Customer Relationship Management (CRM) solutions. Salesforce was founded in 1999 by former Oracle executive Marc Benioff, and went public in June 2004. Salesforce has been a pioneer in developing enterprise platforms through its innovative AppExchange directory of on-demand applications, and its Force.com “Platform as a Service” (PaaS) API for extending Salesforce.
Chatter is a social platform that integrates with Salesforce’s infrastructure and development platforms. Chatter is a social network for the company. It give users access to real-time information about what’s going on in the company.
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