In the 3rd episode of the second season of Frog’s How to Scale podcast, Senior Partner Steven Dunne speaks with Matthew Elson, CEO of Evotix, about how entrepreneurs can create a purposeful business that builds sustainable profitability through the scaling journey.
Matthew has been CEO at Evotix since buying the business for £1 in 2011 and has continuously grown 30-40% year-on-year under Matthew’s leadership, transforming how companies manage Health, Safety & Risk, and engaging with their employees to deliver safe, nurturing and compliant workplaces. Frog invested in Evotix in January 2020 when they had reached £6m ARR and were acquired in May 2023 by which time they had reached profitability and passed £20m ARR.
In our conversation we cover:
- The use of unit economics and the ‘Rule of 40’ to monitor performance
- Tracking gross retention to ensure you are building a profitable customer base
- Splitting the business in two, where the margins from the profitable customer base funds the growth of the loss-making part acquiring new customers
- Using recurring revenue per full time employee as a key metric for driving long term sustainable profitability
- Entering new markets as a value creation strategy
- Investing in operational capability to avoid bottlenecks and add value
- Fulfilling purpose in the business to drive long-term growth
- Selecting an acquisition partner with aligned values
We cover these topics and many others extensively in How to Scale, Frog’s library of Scale-Up insights, including further episodes of the podcast and Scale-Up toolkits from our Frog Operating Partners. Subscribe to our podcast or follow us on Linkedin to ensure you never miss a new episode.
