How big is Zapier?
As Zapier’s first-ever Integration Developer Partner, we get asked this question all the time.
We love to brag about our favorite “autogration” juggernaut. (If this isn’t yet a contraction, it should be- “automation” + “integration.”) But as a Zapier Global App builder, we’re always eager to explain “why Zapier” to our potential clients. Here’s our first effort to quantify all things Zapier:
UPDATED OCTOBER 13th, 2016:
Another interview with Zapier CEO Wade Foster, this time a podcast with the founders of CodePen. Wade confirms several numbers reported here, including that Zapier now has “over one point million something registered users.”
UPDATED MAY 5th, 2016:
Check out this blog post from CEO Wade Foster, announcing that Zapier has officially crossed the one million user accounts threshold. (We heard this number in his This Week in Startups interview discussed below, but it’s certainly worthy of a blog post too!)
Foster also announced today that Zapier has “collectively set up more than 4 million Zaps” and run more than one million tasks a day.
Five years this October 2016, According to TechStars, Zapier was founded in October 2011 at a Startup Weekend in Columbia, Missouri.
And FWIW- they won that weekend competition and then headed for Y Combinator.
Citation Date: March 4, 2015
“48 employee” according to CEO and Co-Founder Wade Foster in an interview with the founders of CodePen.
All of Zapier’s employees work remote, a unique feature that Foster gets asked about in interviews.
UPDATE 5/5: Foster’s blog post says that his employees span eight time zones as well.
UPDATE 8/30: Foster told the CodePen Podcast that Zapier stands at 48 employees.
Citation Date: April 27th, 2016
“Over a million user accounts,” according to Foster in his This Week in Startups interview with Jason Calacanis released March 1st.
Because Calacanis is the Leatherman of interviewers, he was able to get Foster to reveal some numbers that Zapier doesn’t brag often. Foster’s Midwestern humility is evident in the interview, but JCal’s prybar style produced a must-see interview. Here it is, in full:
Citation Date: March 1, 2016
ZAPIER APPS IN THE ZAPBOOK:
753, according to… us!
Every few months, Left Hook Digital scrapes publicly available data to verify this important number. Our count excludes all “upcoming” apps listed in the Zapbook.
You’ll often see “over 500 apps” or “500+ apps” on various marketing pages and news stories, but that’s because the copywriters can’t keep pace with the growth of released Global Apps.
How fast is this “Global Apps” number growing? We’ve verified an additional 121 Global Apps in the Zapbook since early January 1st, 2016.
Citation Date: October 12th, 2016
ZAPIER VENTURE CAPITAL FUNDING:
Just $1.2 million according to multiple sources, including Crunchbase.
This news story from Silicon Prairie News announced Zapier’s first fundraising round in October, 2012:
Zapier, which makes a platform for syncing data between web applications, today announced a $1.2 seed round featuring investment from Bessemer Venture Partners and Draper Fisher Jurvesten. The round also includes investment from a pair of Columbia-based investors, Brant Bukowsky and Brent Beshore, as well as Wufoo co-founder Kevin Hale, Michael Liou, Kim Miller, Jon Murray, Mike Stachowiak and Ben Li.
Foster also told Calacanis that they had achieved amazing growth with just a single round.
From his March 2016 interview:
Calacanis: And you’ve only raised $1 million?
Foster: One million and change, yeah.
Calacanis: You’re capital efficient, huh? You’re making more money per year than you’ve raised!
That’s the way to do it. That’s it.
Foster: …Capital efficiency is back in style, thank goodness.
Calacanis: But You’ve only had to dilute 20% of your cap table!
Foster: I very much like that.
Calacanis: So you get to own this huge chunk of your own company, and be in control of your own destiny. That’s good. You’re doing it right, Wade.
Foster: We’re trying to do the triple triple, double double double thing that investors talk about…. eventually before you know it, you’re a $30 million revenue business.
Citation Date: This Week in Startups, March 1, 2016
Welcome to speculation land.
Disclaimer: Even though we’re a partner of Zapier, we have no inside information on its revenue or profitability.
But because Zapier is a pillar technology platform for our business, it’s natural for us to be curious about the platform’s success and future potential.
From that perspective, allow me to make a WAG.
Calacanis pried more useful numbers out of Foster. Here’s the exact exchange:
Foster: So we just passed a million registered users, which is pretty exciting.
Calacanis: And maybe three or four percent of those pay?
Foster: Yeah exactly. So around 25,000 or so are paying customers.
Calacanis: You guys profitable now? Break even? Close?
Foster: We’ve been cashflow position for last 18 months. This is a real thing.
Based off of that exchange, we can estimate some revenue ranges:
Zapier Revenue: A Wild Ass Guess
Low Range: assuming all paying customers are on the Basic Plan for $15/month, Zapier’s annual revenue would be $4.5 million ($15 x 12 months x 25,000 customers)
Mid Range: assuming that paying customers are distributed across the options, but with the vast majority still on the Basic Plan, we’d estimate annual revenue to be:
Basic Plan = $3 million ($15 x 12 months x 20,000 customers)
Business Plan= $1.754 million ($49 x 12 months x 3,000 customers)
Business Plus and Beyond= $2.376 million ($99 x 12 months x 2,000 customers)
TOTAL: ~$7 million
While I have no data to back this claim up, I’m going to suggest that Zapier’s annual revenue is actually higher than the mid-case above. Why?
Because the platform is so damn useful.
I have to believe that there are many different companies paying more than $99/month to automate their core business workflows.
Have you seen any other published data points that would help quantify Zapier’s success? Let us know, and we’ll update this blog post frequently.
If you’re a SaaS leader wondering if you should engage Left Hook to bring your app to Zapier, let this “Zapier by the Numbers” give you both comfort and enthusiasm.
Watch or read any interview with Wade Foster, and you’ll quickly come to the same conclusion we have: Zapier is the must-have iPaaS for your company.
Tom Elliott is the co-founder and Managing Partner of Left Hook Digital. He first started using Zapier in the summer of 2012, back when he used to bug Zapier to enable more connectors via their live chat… and Wade Foster used to cheerfully reply to all of them.