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 (www.yammer.com) is an Enterprise Social Network that brings together employees, content, conversations, and business data in a single location. Built for the entrprise and loved by users, Yammer empowers employees to be more productive by enabling them to collaborate in real-time across departments, geographies, and business applications. Employees can create groups to collaborate on projects and share and edit documents. It is a new way of working that fosters team collaboration, employee engagement, and business transformation. The service can...
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. David recently sold Yammer to Microsoft for $1.2 billion. David holds 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.
Seattle, WA
San Diego, CA
Menlo Park, CA
Berlin, Germany
Boston, MA
Berlin, Germany
