Revenue
$285.00M
2023
Valuation
$7.50B
2023
Growth Rate (y/y)
43%
2023
Funding
$583.00M
2023
Revenue
Sacra estimates that Gong hit $285M annual recurring revenue (ARR) in 2023, up 43% from $200M ARR in 2022 for a 25x forward revenue multiple on the $7.5B valuation they raised at in 2019.
Click here for our full Gong model.
Compare to Outreach at $250M ARR in 2023, up 11% from $225M ARR in 2022 for a 17.6x forward revenue multiple on their $4.4B valuation (June 2021), and Apollo at $96M ARR in 2023, up 100% from $48M in 2022 for a 16.6x forward revenue multiple on their $1.6B valuation (August 2023).
Product
Gong launched in 2015 as pair programming for sales teams, giving reps instant video replays of their sales calls for peer coaching.
With the dramatic rise in sales video calls post-COVID, Gong expanded from a 1:1 coaching tool to a 1:many data store and system of record for sales activity in a company.
Today, Gong is the place where every customer call at a company gets stored for rewatching.
Companies add a Gong extension to their Outlook or Google Calendar settings, and Gong automatically finds upcoming sales calls and demos to record. Then, when a rep gets on one of those Gong-tagged calls, a silent Gong bot joins the meeting to record audio, video, and any chat or screenshares.
After the call, Gong transcribes the calls and stores them in S3—from there, companies can look back at old sales calls for insights, check out Gong's collected analytics and insights pulled from their calls, and review aggregate-level data on sales rep and pipeline performance.
Business Model
Gong is a subscription SaaS platform company that prices based on the number of seats that a company needs. Pricing ranges from roughly $1,600 per user per year for small teams (3-49 users) to $1,360 per user per year for over 250 users, with discounts from 5% to 15% applied as the number of users increases.
A yearly platform subscription of $5,000 gets companies unlimited Collaborator seats, unlimited storage, trainings, a customer success manager, and unlimited data exports.
Gong’s core offering includes two seat types: Collaborator (free) and Standard (paid). The Collaborator seat provides basic functionalities such as call listening and access to alerts, libraries, and comments, while the Standard seat includes features like deal boards, team statistics, coaching recommendations, and call scoring.
Competition
Gongification
Sales platforms monetize call recordings by using it as a usage-based value metric, driving upgrades to higher pricing tiers in their core per-seat subscription SaaS business model.
Gong's core video recording and analytics feature has become a part of every sales product, from HubSpot (CRM) to Pipedrive (CRM), Apollo (go-to-market), Zoominfo (go-to-market), Clari (forecasting), Outreach (sales automation), 6sense (account-based marketing), and Gainsight (customer success).
As this "Gongification" has spread across SaaS, developer middleware has emerged to enable products to easily ingest video and make it useful, from Recall.ai (universal API for meeting bots) to Deepgram (API for transcription), Gladia (API for translation), AssemblyAI (API for text summarization) and Pinecone (vector embeddings for search).
Zoom
These APIs allow teams to integrate video calls, leveraging existing widespread usage of meeting bots from Zoom, Google Meet and WebEx, rather than building native video experiences as with tools like Mux or Daily.co.
Zoom (NASDAQ: ZM) launched Zoom for Sales & Revenue to go after companies like Gong and HubSpot and video-adjacent enterprise workflows around sales, success, and productivity.
But while Zoom dominated the COVID era by being the only company to offer reliable cross-platform video chat at <150ms latency, video chat has been commoditized since then, and Zoom has struggled to transition into a product company and build this productivity suite around their ownership of live video.
Zoom grew 326% year-over-year in 2021 and had 300 million users logging in every day for meetings—as of 2023, growth has nearly flatlined at 4% year-over-year as they compete with vertical SaaS and Microsoft Office (NASDAQ: MSFT) to own with their all-in-one platform product.
With the dramatic rise in sales video calls post-COVID, Gong expanded from a 1:1 coaching tool to a 1:many data store and system of record for sales activity in a company.
A big trend we're seeing today is that companies are applying the Gong playbook in areas of SaaS that have nothing to do with sales.
Companies are building products that ingest and automatically pull insights out of videos for everything from hiring (Metaview, $7.6M in funding), project management (Spinach.io, $5.2M in funding), and team productivity (Fellow, $30.5M in funding).
What this evolution hinges on is the fact that video data—from the 5+ trillion minutes of video calls per year and counting—is a massive net new source of high-bandwidth insights.
That data is increasingly feeding into every B2B SaaS tool because of how it can power AI-based analytics, discovery and engagement features.
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