RevenueCat was one of the first dev tools that made me realize how transformative they can be for startups. I was working at a mobile app and we use RevenueCat for managing in app subscriptions and it helped us move much faster and honestly, we would have been really screwed if it had disappeared overnight.
For people ideating on, like, new dev tools, any problem in computer science or computers or whatever that seems at the outside it should be simple, but it's not, is a really good opportunity because it actually brings kind of a lot of shame shame when a developer can't do it. Right? You know, they've heard the horror stories, and they know, like, okay, we can just click and bring this tool in. And instead of looking like
a loser, I look like a hero. So after sending dozens of emails and DMs, I'm really happy to welcome today's guest, Jacob, who is the CEO of RevenueCat. Jacob recently announced a very interesting acquisition. They didn't buy a dev tool, they actually bought one of their customers.
It was like, it's a big app with like over a hundred thousand subscribers and like used revenue cap
from the beginning, had like all this stuff and I was like,
that that would actually be very very valuable to us.
I'll leave you in suspense about exactly what this mobile app is, but trust me, it's pretty interesting. Okay. If you're not a mobile dev, let me set the scene. You might think of mobile apps as being like Duolingo, Spotify, Headspace, all these sorts of things. You might not realize how big it is.
It's a $150,000,000,000 a year market right now just for in app purchases. And you might also be thinking hey like you know like purchases like sounds like Stripe is it just like Stripe of mobile development? It's not really like Stripe. The biggest difference from mobile that I remember is that it's like you just have many types of subscriptions. You're constantly experimenting.
You might let people pay weekly, pay monthly, pay annually, pay like every three months. We did all of these things. We tested them all out and you have to like maintain that and make sure like people have the right access after all these years. You might do trials where it's like free first seven days are free, first month is free or you might do like discounts and like special offers. You might just change the pricing completely and you've got to keep all these things in sync.
You've got
to make sure people have the right access. You've got to make sure it works on a Google Play, on Apple plus people that just buy it like with Stripe on your website as well we had that and it's just very confusing. So, hopefully, that gives you a little bit of context as to why this actually matters. Let's go.
You know, Remedy Cat has gotten further and further away from the core problem. I mean, we still solve the core problem really well, but, like, the last couple of years, we've been building at a much higher level in the stack. But the, you know, the core for folks that aren't familiar with the space is, like, if you sell anything digital on the App Stores, being the Google Play Store and App Store specifically are the the two biggest, you're sort of forced to use Apple's, in app purchase per payment providers and, our payment system and and Google's. And they they provide a lot of value for customers because they, you know, developers, they they're a merchant of record, so you can sell in 200 countries or something like that instantly. You don't talk about tax stuff.
You get a lot of protections against, like, credit card fraud and things like this. They take a good cut. They take, like, 30%. And, like, that's not even the hard part, the worst part. The worst part is just the APIs are kinda clunky.
They always have been. The you know, Apple and Google have made progress, but, you know, they're they're they're Google may be slightly better as an API company, but I don't think Apple would have ever set you know, outside of their, you know, the the the the mobile SDKs themselves, I think, are still pretty good. That's, like, their legacy from acquiring Next step and that whole origin story for for most of mobile, at Apple, but their APIs has never been their strong suit. So they're just they're just kinda hard to use. They don't really match what's, I think, considered industry good.
And, you know, that's kinda where we step in is we put this layer on top and make it easier and and and let developers focus on the actual interesting parts of commercialization, which you were just mentioning is, like, what how much should I charge? And, like, all of these things. You know? Because the faster, you know, the faster you can make changes, experiment, run your business, you know, the more successful you'll be. So that's kind of that's why we're that's that's why our mission is, is to help developers make more money by making all, like, the hard stuff easy.
So
This episode is brought to you by WorkOS. If you're building a dev tool, at some point, your customers are gonna start asking you for enterprise features. WorkOS offers you single sign on, skin provisioning, and audit logs out the box. WorkOS is trusted by Perplexity and Vercel as well as Workbrew, a home brew management startup that I recently interviewed. I just told Mike that WorkOS is the sponsor and this is what Mike said.
Yeah. So WorkOS isn't paying me any money for this. I I pay WorkOS money for this, but WorkOS is, like, one of the best developer tools I've, like, ever used. It's it's the documentation and the experience with building with them is so, so good. Like, I initially was almost like, okay.
This seems expensive, but then I built an integration with them in about twenty minutes. So I had spent two days banging my head off the wall trying to build it directly with Okta. And then with Workhorse, I then have, like, many, many SSO providers, like, supported instead of just one. So, yeah. Like, for me, WorkOS is one of the nicest developer experiences I've encountered in the last, like, five years probably.
And it's so surprising because a bunch of the developer team are at GitHub and therefore are very good at the job. Go to workos.com to learn more. Yeah. And I think, like, in in mobile, unless people have worked in mobile, it might be hard also to imagine how important this is because I think, like, in SaaS, like, typically, you might, like, review your pricing, like, once a year or, like, just, like, you know, have an offer, like, Black Friday at most, and that's very rare probably.
Yeah. We I mean, we don't we are the number of times we've touched our own pricing is I can count on one hand in seven years, right, versus, like, a customer. And the reason for that is, well, one, there's there's just it's kind of thinner margins. Or I I like to say our customers are not literal margins, but our customers are low ACV. So meaning, you know, our customers' customers, let's say, these businesses that we serve, they're relatively low ACV.
So usually less than a hundred dollars in annual contract value ACV. Relatively high churn. So consumers are a it's a churn challenge business. There's a lot of turnover, and relatively high gross margins, though. So, like, basic you know, you're selling digital goods, which are generally infinitely replicable.
So you almost have zero gross margins, or zero which are our marginal cost. Sorry. And, and so that creates just kind of, like, an interesting difference from what most of SaaS is, which is generally high ACV, generally reasonable churn or low churn, and and also good gross margins. So they're just they're different businesses. And and for consumer, so you you really wanna optimize your price point, your conversions.
You know, you're getting you're getting hundreds of that batch a day for customers. You can do, programmatic price experimentation and stuff because you have so many customers coming in all the time. Customer support is a different thing than in in b two b SaaS because, you know, you have, again, thousands and thousands of customers, which, like, a a big SaaS company might only have thousands or tens of thousands of customers is very, it's not very uncommon for a subscription app to have hundreds of thousands of subscribers. And that just dictates an entirely different type of business. And I guess it's you know, we serve that vertical.
It requires a different set of tooling, a sort of different set of, skills and and and and stuff, and, you know, that's been that's been our niche. But, yeah, you're right. Like, nobody not nobody, but it's it's rare for people having worked in this space to really understand it. I had this funny anecdote, from the early days where I was always able to sell revenue cat much, much, much more easily to somebody who actually knew how to build RevenueCat. So, like, somebody who had done it before was always, like, 10 times easier a sale.
And we have this, like, internal sort of this internal motto. They always come back. We'll get the, we'll get the tire kicker come by who's, like, entering in app subscriptions for the first time, and they're, you know, the developers I'm one too, like, always overconfident. Right? You're a good computer person. That's how you got here. But you're like, how hard can it be? It's just JSON. Right? And then you're like, it's it's not that hard.
It's just gonna be time consuming and annoying. And then you get it wrong, your company's gonna lose money, and it's fine. And then, you know, they don't always always come back, but very often, they come back, like, six months later. And they're like, yeah. Actually, this sucks.
And so, you know, which kinda also plays into our our patience as a as a marketing or go to market tactic is not be too aggressive. I guess we we know a bit we know the complexity of the problem is is is enough that eventually they will they will have a need for us. So
Yeah. And it it it felt like as well, that at least in my team, it wasn't just the developers that were kind of involved in revenue card. It was like very much like the rest of the team is very aware of RevenueCat, and it was, like, it it it I don't know, like, how much it is, like, a is it probably a lot of, like, the marketing team, the founders Yeah. Execs get involved in RevenueCat.
I'll give that a, like, sort of an accidental credit. And it's it's actually been something that's been a bit awkward as we've gotten bigger because, you know, the me and my cofounder, we're we're both developers, and we've kind of always stylized RevenueCat as a developer led company and a developer first company. I've tried to expand the definition of developer rather than change us from being a developer oriented company. But I also realized, like like, when I say developer, I think of you know, when I worked at Elevate, which is, you know, mobile subscription app before this, you know, we my boss was a designer. CEO was a designer.
We had product people. We had game designers. We had all kinds of folks, and I'm like, these are all developers in my mind. Like, we're we're all working on Yeah. Software product. Right? The only people that you might not put in that category is, like, maybe somebody in ops or finance or something like this. But, like, who cares? Like, throw them in the bucket, and we can think about people who make software as, you know, humans that make software for other humans. That's a developer to me.
That's also just cope for me not wanting to redo a whole bunch of swag and change our mission statement. But I've tried to expand it, but you're right. Like, and this is, I think, maybe there's a lesson in here for other DevTools founders, which is, like, I think the more like like, obviously, there's good benefits to a DevTool that's just, like, in the engine room and the engineers love it and they plug it in and never gets thought about again. But there's been a lot of advantages to us even if it's been somewhat difficult that, the developers love us. That's a must.
You gotta have that. But then it's great that the customer support team uses RevenueCat too. And the founders of the company are often on RevenueCat looking at their stuff on a daily basis and the data teams and often the product teams. And, like, as the company scales, more and more stakeholders use RevenueCat. Now that's really hard because the magic of RevenueCat was this developer experience that we really focused on, and that doesn't necessarily translate.
So, like, we're a great product for developers and maybe a mediocre product for, you know, the some of those other personas. I think you have to be great for one of those personas first.
Yeah.
And that's kinda what the stage we're in now is, like, okay. How do we catch up on all these marketers also as a huge growth marketer, as a huge, ice you know, persona for us. Is that we're kind of in the stage now where we're, like, catching up and retranslating some of the products so that it it it talks to all of it. It's hard. It's hard to talk to, you know, five different personas in a product and not have it come off super, like, wacky. Right? So yeah.
Yeah. It seemed like you had a good even when so maybe this is just this is even put revenue kind of a very good light. But, yeah, like, I was saying, that you're the person that I've been inviting onto the podcast for the longest time. And I think it was, like, because it was it really was, like, one of those, like, kind of magic tools in the sense when I was working there, but I'm where my kind of manager was, like, tasked with setting up all the in app subscription stuff. And because when I joined, they didn't actually have it.
It was, like, it was all free. And then suddenly, we were doing this, and it was just this massive project. So he was, like, just taking way too long on that. And then discovered RevenueCat, and then, you know, it was, like, he did it. He loved it. Shout out, Jesse. Legendary guy.
It is, it is a magic moment when you can make a developer look like a genius, right, or look like a hero. Yeah. You know? I think our product's not perfect. It's still not perfect.
It never will be. But, like, when you can relieve a ton of effort for a developer and take what could be you know, I think part of the part of the sell and I think this is, like, for people ideating on, like, new dev tools projects. I think any problem in computer science or computers or whatever that seems that the outside, it should be simple, but it's not. It's a really good opportunity. More so than there are complex problems that are obviously complex problems, and those are good to work on too.
But I think there's a special thing in this one. It it's harder than you think it should be. Because and the reason it's a psychological reason, I think, is that it actually brings kind of a lot of shame when a developer can't do it. Right? And they have to, like, explain to nontechnical people, like, I they're like, why Apple gives you a notice, you know, some nontechnical CEO person who's like, I just go there's there's a website for it.
It's easy. And and and so I think we get a lot of developer love just by, you know, avoiding that experience for developers and being like, okay. Rather than you know, they've heard the horror stories, and they know, like, okay. We can just click and bring this tool in. And instead of looking
like a loser, I look like
a hero. And I think that's a super powerful moment. Like, magic, like you said, just kinda magically solves the problem, which is great.
Yeah. I was talking to, one of my friends from when I worked there, Rosie, to try and get, like, good question ideas as well, and she's a growth marketer. And, her her question was, like, how did you figure out how the this was even, like, a possible product to build? Because it's, like, the sort of thing that you almost think, like, okay, that's Apple and Google's domain. Like, this sucks.
Like, it's always gonna suck to build it. Like, it seems like it's a actually quite a complex, product. Even though, you know, saying it's maybe seems simple, but it's
It's a compounded set of very simple things. Right? It's a it's a it's an emergent complexity in the system. But, yeah, I mean, the the the the simple truth is, like, I was in, you know, build for build for yourself. We I worked at this company called Elevate just for, like, you know, story time.
But, like, we we built this app called Elevate in, like, 2013 or '14 right when the App Store was, like, allowing in app purchases, subscriptions. They had them for a couple years, but they were only allowed for, like, news apps, and Apple is very restrictive. And And at some point in twenty thirteen, fourteen, they were like, hey. You can now anybody who has any sort of, like, recurring content basically, SaaS. They were like, you can do subscriptions for apps now, which was a big change.
It was just an app store, you know, review policy change. And so we very quickly switched our product over to being subscription based, not really knowing a whole lot about it. And then sort of two things happened. We did that. And then right after app we got featured just back when Apple did, like, an app of the year, big push.
They would pick one app and make it app of the year. It was literally, like, four weeks after we push subscriptions into production. We got made app of the year. And we learned all the reasons our in app subscription system was not very good. Right? Very, very quickly.
Yeah.
And, yes, I you know, we we got, like you know, Miguel and I, we worked on this together. My cofounder, you know, we got a good two years. You know, we've been working on that business, but then we were involved, and we weren't just involved in the engineering side. You know, we were doing some growth stuff. We were doing some product engineering.
We were doing, like Yeah. And you can see that in RevenueCat's products. It very much, like, maps to kinda how we were thinking as a, you know, medium sized app company at the time and kind of like the Yeah. You know, what makes it hard is the confluence of all these problems. It's like growth, and it's, you know, the infrastructure, and it's the data problems and Mhmm.
And so the commerce stuff. And, so, yeah, I didn't you know? And I think that actually is what made it very difficult initially to pitch revenue cap, especially to investors because, like, they did not really understand you know, like you said, if you didn't know the problem, you didn't know the problem. A few investors who I talked to who had worked in subscriptions were like, yes. All of my subscription companies have garbage data because it's really hard.
Yeah.
But, yeah, I mean, it really just evolved out of our own experience and being sort of, like, you know, wearing many hats at previous startups. And, you know, most by definition, most startups are small. Right? Like, but by numbers. Right?
There are big startups, but most startups are small, which means most people need tools that can kinda do a lot of different things. They can't buy, like, a point solution for everything at the beginning. And so I think that's one also one of our superpowers is, like, we just give you a lot of pretty good stuff out of the box for this kind you know, for this one vertical specific kind of business.
Yeah. And, it seems like now you've got pricing experiments. But when when I was, when I was using RevenueCat in my mobile app days, you didn't, I don't think, have it or it was in beta, but you had this, like, incredibly comprehensive, article on running experiments. And it wasn't just, like, one of those articles that, like, you read. It was and and just, like, oh, cool. It was, like, we were that was, like, we were referencing it, like, the entire time. Like, it was, like, everyone
Are You tell me it was, like, it was, like, something I published in, like, 2020 or 2021, maybe.
It was, like, you I think you wrote it. I'm I'm 90% sure you wrote it. Yeah. And it was, like, just, like, how to like, I don't think it was, like, how to do it in revenue cut. It was more just, like, the statistics behind, like, running pricing experiments and stuff like that. And
Yeah. This is this has been you know, it's a and there's a whole story behind the, you know, scaling a company, and that was sort of, like, one of the last technical projects I was able to own as we were scaling. From an internal, like, logistics perspective. Like, you to code, and I'm gonna tell you all the technical founders or people wanna be founders out there. Like, if you're a computer person, you really, really, really love computers, don't start a company because you're going to not do computers anymore, anymore eventually.
Like, that is just what's gonna happen. Yeah. Yeah. Yeah. That was, like, my last hurrah.
And there was there was, you know again, going back to, like, we had built a b price a b testing in the past, and, like, I knew what things worked and what things bit us and, like, the specifics on mobile, you know, because you're not drawing for a website. The the the you know, you're not loading pages from a website. The environment's a little less controlled and has some, like, like, there's weird things that can happen in an AB test on mobile because of, like, connectivity issues that don't exist on you know? So sometimes some of the other, like, a b testing tools I'm sure they have a address now, but would create, like, weird systematic errors and stuff like this. And then I was super obsessed, and I still am super obsessed with, like, Bayesian modeling.
So, you know, joint analysis because basically, everybody in experimental analysis basically just uses frequentist style, as a binomial binomial calculations. You know, did did a convert basically, did did did more events happen on the a branch or the b branch? But that doesn't work for pricing because, like, pricing.
It's about profit and stuff.
There's, yeah, there's multiple there's multiple steps in the conversion funnel. And then on the end of that, there's, like, a scaling factor, which is, like, the price. And then often and then subscription is even more difficult because then there's a potentially infinite number of continuing conversion events beyond that. And you can't just use binomial, like, conversion. You can as, like, a first order.
Yeah. And so but, yeah, it was an interesting one because we launched that beta, and then it kinda, like, hobbled for a long time because we didn't have the team built up to really address it well. And then, in the last year like, last year, we finally were able to start to really invest in it, and we've got big plans to you know? And we didn't end up we're we're no longer using my beautiful Bayesian model. That's gonna be something I regret the rest of my life.
But, but but yeah. I mean, I think something you hit on there is, like, just content marketing too and just how even if I have to sit here and explain, like, yeah, actually, that all did not work out and blah blah blah. Probably, I should do a follow-up blog post, but, it's always worked really well for us to overshare with our customers a little bit. Right? Like, I think it's it's always helped more than it has harmed, and that's probably a good example.
I think so. Because I, like, you know, think like, assessing myself, like, I I I think I I came away from it, you know, telling the team, hey, you know, like, we're actually we're just doing this simply and it's not that's actually probably not right. And, like, it was like, okay, you know, revenue count. I've learned something.
Even if I can't fix it, at least I can warn you. Yeah. Right? Like.
Yeah. And it's like you kind of are an authority, and we, like, trust you more.
Like Yeah.
It sorta I it feels like a a build up, like, affinity.
People are pretty good at sensing bullshit artists, I think, you know, generally, especially, like, the best companies. And when you're building something for people where you're gonna index into their success, you really want you really don't wanna try to bamboozle. Like, you really wanna be able to get, like, the companies with the best and smartest people working at them as your customers because they're gonna be the ones that drive the most growth for you. Right? And I think this is why, you know I don't know.
There's such an allergic reaction to a lot of, like, sales techniques and and sort of, like, mid marketing out there where it's, like, just not all that creative and all that interesting. I just think it aggregates kind of a crappy customer base, which which then just doesn't scale that well, or at least not as efficiently as I think just, like, you know, being very, being very honest with your customers. And, yeah, just that trust and authority. Right? And understanding.
Like, the more the empathy is, like, two ways. Right? So, like, if I can be empathetic to my customers, which we try to do every day, but then the more I communicate and share, my customers also gain a lot of empathy for us as a as a as a vendor. And, you know, when things don't always go right, it helps a lot that they know who I am. They've seen my writing.
They've seen other people on our team. Right? And they know we're humans and that we care, you know, and that we're fallible, right, as well. And so I think that's that's, you know, that's a poor excuse for, you know, screwing things up. I prefer not to screw up ever, but, like, when we when there is when there is an issue, it's really helpful to have kinda built that trust with our customers.
And when you wanna sell them something. The next time I wanna sell you something, it's so much easier if you, like, trust me already. Right? Like, I don't have to, like, convince you that, a, this product is good, and b, like, I'm not a I'm not a weirdo. Like, I've already convinced you that I'm not a weirdo.
That's it. Like, now
you might even try the product even if you're not convinced, but you because you just, you know, you trust me. That's which is a great position to be in.
Yeah. And, like, let's say, like, sticking on the pricing experiment thing is, like, you've you've taught me that this is a really difficult problem and that it's, like, if it takes longer to get out there, that and my understanding is that's because it's hard to build. And then if it's expensive, it's like, well, I understand because that's like that's not an easy thing to build and it's taken them a lot of work and it's like really hard to maintain. So, of course, it's not gonna be cheap. Like, it's like this sort of it feels like Yeah.
Yeah. Yeah. Yeah. We've we've kind
of we've kind of made it clear the value, you know, by being honest. Like, a lot of my a lot of my early content that resonated, you know, going back to the very beginning of growth. And I think this I think this generally applies to any dev tool that you're starting from scratch. Ideally, you're attacking some domain that's complex in some way, and there's, like, probably a lack of content on how to do that really well. And if you're the expert in that, just give it away.
Like, if that's what we did. We we basically explained how to build revenue cap. That was our first couple years of content. It was like, here are all the I I when we when we started, like, when very, very beginning, like, we pushed out a beta under Reddit at the end of twenty seventeen. And we're just, like, you know, trickling in one sign up a week or something like this.
There really have much to do because, like, I didn't know what to build. I don't have users. So so I spent half my time vlogging. I literally would, like, two or two and a half days a week. I was, like, writing long form blog posts, that at the time went up on a medium blog.
And I just wrote down, like, every interesting sort of technical aspect of what, you know, I thought was wrong with StoreKit, what were some of the technical challenges? And then I guess sort of intentionally, unintentionally just thought about, like, okay. Like, how are these gonna SEO? And there was a lack of content on this stuff, and it was so niche. That I think ended up being our first, you know you're always just, like, trying to grab the next rope.
Like, what's the next thing that we're gonna get? And that was, like, probably our first real piece of traction was, like, okay. Started those that that content started to rank really highly, like, right underneath or sometimes above some of the the Apple content. And so that was, like that was a huge thing. So, I mean, first mover advantage, obviously, but, like, that was huge for us.
And, I mean, look. If you're building something net new, that solves a problem that exists. Like, there better be a search term you can outrank. You know what I mean? Or or or the idea is probably not not it's gonna be too hard to get to get going. You're not differentiated enough. If you don't think you can bring some content to the table that's gonna that's gonna outrank, you know, for some at least a couple, like, important keywords.
Yeah. That's a really good point. And I think, like like, you had a really good tone on I remember, the I think I said this to you, but, like, my my again, Jesse, he he was, like, really happy, because you were gonna send him some swag, and then he were, like, forwarded us the email that you'd sent him that was, like, he's, like, you it was, like, so I still remember. It was something like, you get a free T shirt, and I get a free human walking billboard.
Yeah. Yeah. I the the that that card that that still goes out, by the way. That exact copy. Yeah. Yeah. Yeah. Yeah. Okay. That was like, yeah.
There's you know, if you live in this if you survive long enough, there's just, like, these random things you get right, and then they just, like, run forever and and just continue to work. But the T shirt the T shirt can it's called Tshirt.js was the script, my digital t shirt cannon. And then and then eventually, we had, you know, we got a little bit bigger. We hired more engineers. Now it's tshirt.py.
Got got converted to Python. You know? Gotta be, you know, standardized. But, but this was in 2019. No. Maybe '18. And, yeah, I met this vendor, Printfaction, that does like, they'll print T shirts and and do fulfillment, and they have, like, a decent little API. And it was, like, 15 or $20 to have one of these sent out. So, basically, I just, like, with Intercom Jesse, by the way. Oh, yeah.
No. That was definitely I wrote that note by hand. Yeah. And, like, yeah, I was just able with our, you know, basic Intercom integration and some syncing scripts. You know, I just wrote a little job that, you know, once you hit your tenth subscriber so I didn't send it to everybody.
So you had to, like, prove that you were a real human building actual something that got some amount of subscribers, but it was only, like, 10. Yeah. It would just automatically fire off a fulfillment link. It'd send it to you, let you pick a size. And to this day, I think we've sent we've sent thousands of T shirts, and, like, I think it's been our most popular product.
Free stuff is always, like, the most popular product you can make. But, yeah, it's crazy. You see people you know, now when at dev events, a lot of times, I'll see people in the shirts. Shirts. The red.
The yeah. I mean, the red becomes, like is become sort of iconic because I think of that that that red that I happen to get for that shirt. But, yeah, that was, like, one of these, you know, really interesting set set and forget marketing things that's so cheap to do. Like, once you reach a certain, you know, scale and, kind of like especially, again, it's like it's it's it if you have good pricing aligned with customer growth, you can spend a lot of money kinda making them feel good even if it's a loss in the early days because, you know, there'll be a couple winners in there that will help pay for everybody's T shirts, basically. Yeah.
And and and it all works out. Yeah. And then the tone, the tone is, hey. I don't know. I just I I write weird, and I talk weird.
And, it's hard to replicate. Like, I've had many attempts many attempts internally for people to, like, write in Jacob voice, and it always comes off like, uncanny valley of Jacob voice. Yeah. So I end up most of the time having to just write I just, like, I just tell people don't even just send me what you want, and I will write it. And I should do a Jacob g p t, but, like, Yeah.
I don't even think it's not even it can't even do it. I don't know why I'm so I'm just so unique. I can't be I'm the only one that's unreplaceable by AI. But, but AI, all these elements will have, like, the dorkiest corporate voice you could possibly get by default. Maybe Grok is, like, the most, like, casual kind of, but even that, it's, like, super kinda I don't know. You could just tell I'm talking to, you know, a a computer. So we'll see if that ever gets fixed and I can finally retire.
Yeah. Do you think there's any, like, advice I mean, not to, like, replicate Jacob, but, like, advice to other DevTools founders to kind of be a bit more, like, have more personality.
Well It did. I'm not Maybe they maybe they won't
say that to anyone specifically that they should have
a I think anybody who's worked with me pre and post the company would put I tell you I didn't this wasn't something I developed while running Remedy. So I was I was unhirable, Jack. Or, you know, I was I was fundamental. Like, I couldn't work for people.
You had
to sell
a company where you'd be out on the street. It's just Yeah. Yeah. Yeah.
Yeah. Yeah. Basically. Basically. I was like, I I I worked for great I had great bosses.
I had great jobs, and I just I hated them all, and I was just like a total total rake to all of them. Yeah. I mean, I I don't think it's bad to well, this comes down to maybe founding team composition. If you're a dev who wants to start a technical company, and you don't if you don't like being on stage, if you can't make people laugh, if you're, like, not, quote, unquote, charismatic, I mean, it's gonna be a little bit more challenging. And, like, there's different forms of charisma.
Like, I've I don't know if you've ever talked to or seen Miguel, my my cofounder talk. Like, you're very different. He's very charismatic as well in a very different way. I think as a founder, if you get any sort of scale like, there there are occasionally, like, founders who are who you know, one member of the founding team who stays very quiet is, you know, maybe fits an architect role. But, like, if you're gonna scale anything, you're gonna become an exec, and execs kinda have to have, like, you know, Shooter McGavin gun fingers and, like, all that stuff.
Like, if you wanna be successful
I mean, you just gotta you talk to a
lot of people. You gotta do a lot of stakeholder alignment all day. You know what I mean? So, like Yeah. And then, you know, obviously, for sales too, it helps to be able to talk.
And then I say charismatic, like, it's it's, you know, maybe sort of a bad thing, but you just gotta be comfortable with people. Mhmm. And it helps if you can if you're, you know, verbally quick on your feet. And, you know, but if you're smart enough to do computers, you're probably smart enough to to to write quickly and think quickly as well. But, yeah, I did a lot of theater and stuff as a kid.
Like, I've done you know, been making jokes on the Internet in one form or another for, like, twenty five years. So, like, I'm just applying it to a unique sort of, form, at this point. But, yeah, hire a I have a theater kid in your, your founding team this night. My advice maybe.
Who knows computers? That's Yeah.
I mean, that's That's
gotta be
more that's gotta be actually a pretty decent overlap, I would think. So Yeah? Okay. I don't know.
Yeah. Right to us. Yeah. Yeah. And, actually, so one thing I really wanted to talk about, is, like so the startup that I was working at was, sort of how do we how do we two two two devs on the podcast say this?
Oh, oh, spicy audio content?
Spicy. Okay. You said okay. Yeah. Yeah. Yeah. So well, my the startup I was working at was maybe slightly different. It was, like, kind of they position themselves as, like, sexual well-being for women with, like, content. Some of which was spicy. Some of which was, like, meditation. But it was broadly in the same category of a company that you just bought.
Yeah. About as far as they'll let you take it on the App Store. Let's put it that way. You know? Yeah.
So you recently bought an app, Dipsy.
Yeah.
Yeah. Which is Do you
want do you want the insider story, or do you wanna tell you want tell us what it is, Jack. Give me the pitch.
Okay. So it's like 50 shades of gray in art form. Yeah. That's pretty good. I think it's pretty good.
I think I think, you know, Faye and the and, you know, me as a, you know, as a member of the the the holding company for Dipsy, we're like, people probably
do a little bit better than 50 Shades. Great. But,
but but, yeah, basically, it's it's, you know, it's spicy audio audio content that, you know, loosely competes with the traditional, like, like, romance audiobook space or not audiobook even, but, like, the romance novel space. And, yeah, we is this is this we're talking in the beginning of '25. This was at the in in 2024. It was our first acquisition. And, yeah, it's kinda interesting from a bunch of perspectives.
Yeah. Like well, and we could talk about any of it. I mean, one is that, you know, we we acquired essentially with a customer of ours, and there was a couple of driving reasons for that. And then, of course, like, the the subject matter itself is kind of interesting and sort of unexpected for a dev tools company to to start, you know, getting into the spicy audiobook space. I'll say that that was more serendipity than it was intentional.
Yeah.
For sure, it wasn't on my wasn't on my road map. But we were talking about before, it's like the most entertaining outcomes are often the best. So I was like, this is this is good. It's entertaining. It it's memorable. I bet if I had bought, like, some random fitness app, nobody would be asking me about it on a
podcast, probably, or
at least we would be laughing about it. And so and so yeah. I mean, the story behind it, you know, Dipsea the founder of Dipsea, Faye Keegan, she she was a very, very early customer of ours and somebody had, you know, had given us product feed very early, like, 2018, like, one of the first hundred customers or something, I guess. And one of the first, like, venture back real apps using RevenueCat. And so I'd given a I was very opinionated.
She'd given us a ton of feedback over the years, and, we developed sort of, like, a a good a good relationship just on on on RevenueCat and how it can help them and and learning from her product and her team and and all this stuff. And so, yeah, last year when it kinda it kinda a bunch of things aligned is that I I really need somebody like Faye on my team, to help us, you know, grow and scale revenue cash. She had a bunch of really she's a bunch of really great ideas about what we're gonna do to expand sort of what RevenueCat does and is. And then, also, you know, we kinda had this need that I I hadn't been shopping, but, like, we have this need. I think I'm sure a lot of companies in dev tools space run into this.
It's like, you can ask customers to test stuff. You can test stuff yourself, but, like, there's a lot of changes that have very little benefit to the customer. And there you know, they might be just, like, efficiency updates, like, big they can be big risky changes that happen in the back end and maybe don't provide any, like, immediate benefit. How do you get a customer to test that? You either just throw them in a test pool without asking, which is, like, maybe fine, but, like, has risk.
Or but but but then then there's also stuff that's, like, maybe it's user facing or maybe it's, like you know? And and we've constantly struggled with, like, okay. We've rewritten some aspect of some subsystem of in app subscription somewhere, and And it's like, okay. Can we go find a user a customer that will let us, like, turn this feature flag on? And it's like, if you don't bring them something, like, hey.
We're gonna make you more money in some way. They're just like, why would I, like, you know, risk my Yeah. You know? And so I was like, well, it might actually be helpful. You know, we have a bunch of a lot of revenue cap employees, team members have apps of their own,
which we actually use
a lot, like, sort of like, there's no official agreements, but thanks for the under the table. It's always like, hey. Is anybody willing to, like, make their app the guinea pig for this new thing? And often somebody is because a lot of these are, like, side projects, like, things people are, like, you know, relying on. But because of that, they're also, like, tend to be smaller scale.
Right? So it's gonna be, like, tens or hundreds of subscribers. And and you there's just certain things that happen at the scale of thousands or hundreds of thousands of subscribers that you don't see at 10 or a hundred, and cross platform. So Dipsy fit all those needs. It was like it's a big app with, like, you know, hundreds of thousand subscribers, over a hundred thousand subscribers, and, like, and use revenue cap for the beginning, had,
like, all this stuff. And I was like, that
that would actually be very, very valuable to us. And I think being involved in, you know, firsthand and operating a customer company, especially since our niche is pretty narrow. Right? Like, you know, I we we were talking about post log before, which is another great company friend of mine, James. But, like, you know, they they they may have a harder time because they can serve a much broader horse you know, set of horizontal products.
Like, they can serve many, many you know, their customers are probably more varied than ours in in what they look like. Our customers all are there's a variance, but, like, probably look more similar than most vertical SaaS do, which is is advantage.
I think so. Mobile apps tend to be pretty similar. How they operate, what matters, what moves the needle.
Yeah. A lot of the same physics. Obviously, the exactly. What the content is different, but, like, the the physics of the business are often very similar. So it's it's been very informative for us, and especially as we're, like, launching new things and testing new things and stuff that we're we're getting more ambitious and sort of, risk taking with what we build.
And so having an app that's at scale, is is certainly been helpful, and insightful. And, like, we have a first you know, in Dipsy the Dipsy team operates sort of as an independent subsidiary, and, you know, we we we have a Slack bridge with them. And, like, we can ask questions that we would normally feel maybe uncomfortable asking a customer, and and stuff like that. So, yeah, it's been overall it's been overall pretty interesting, pretty good. And, yeah, I was just glad, glad to have a good you gotta have something funny and good.
We we we did a small fundraise this year. I was like, oh, we should probably do an acquisition too. It's kinda how I plan my years. I'm just like, what is the funny stuff I can stuff into the, like, end of year update,
and just
work backwards from there.
So Yeah. Yeah. So so you said you, like, ask them kind of stuff. Like, what what kind of things have been, like are there are there any things that you could say, like, okay. Yeah. We we we just wouldn't have figured that out if, if it wasn't for having Micah kind of
Yeah. I mean, a lot of it will come into, like, you know, Google's like, oh, we're gonna enable this thing. And we need maybe maybe it requires a customer to enable it for us to even see how it works. And so we'll just go like, hey. Can you can you guys flip this on real quick? And then we'll boom. Instantly, you've got data. And that was hard before. We'd have to kinda, like, wait. Especially experimental new stuff.
Like, Apple and Google are always adding new offer whatever things at the at the margins, and we build for it. But often, there's a chicken and egg problem where a lot of our customers won't try that stuff until we make it easy, but we can't really make it easy until, like, we've really tested it. You know, and it doesn't have it often a lot of pull from customers anyway because, you know, it's on the Google. Apple built too good of stuff on this. This that that I don't know.
But, but so so having that ability to just go and, like, flip things on Yeah. Has been has been really helpful. And sort of anomalies too has been nice. Like, there's always anomalies. Like, app like like, Google will subtly change things.
And, like, we can you know, we have limited visibility. This is like a mobile dev challenge. This is challenging probably for anybody building a dev tool that isn't purely an API. So if you're like an APM company, anybody who's, like, deploying bits into somebody else's environment, which is, like, you know, revenue guys in the SDK. So that goes into the other app.
There's, like, a limit in visibility that you can get. Like, Like, what's going on in that runtime, exactly? And so now having our own first party, like, we can actually introspect into that runtime if we need to and and get logs and, you know, and and do that much faster than we than we do in, like, a customer you know, the wait for a customer to report it, and then we have to ask for logs, and then now we can jump in at a code level, without without having to, like, you know, go back and forth and do a screen share and all that stuff. And it it sped sped a lot of things up. But but definitely an interesting bet.
Like, I I had to there's a lot of, like, trust me's, that Yeah. Had to go on for for this to go through, but, but, overall, six months in or so or I guess only four months in, yeah, there's been a lot of, quote, unquote, synergies. Even even even quite a few I didn't expect, so that's been good. That's cool.
Was there any, like, precedent to it, or was it just like you? Because I didn't I haven't heard of anyone doing this before.
So, I mean, like, Applovin, if you know them, they they they're like a mobile develop a mobile, ad. Feel like I know. A Yeah. They they bought Adjust, which is, like, a mobile management partner. They also have a a fairly large app portfolio.
And but they for different reasons, I think they're actually, like, operating using their, like, advantage as, like, a market maker in ads and stuff to actually make money. And it it it it they've they've, like, I assume use leverage to buy, like, fairly large apps. That was never the case for us with Dipsea. And, like, I even went out to some of our, like, competitive companies that use revenue as well and kinda reassured them, like, hey. Like, we're doing this.
I want you to know that, like, we're not gonna, like, use any sort of insight information. It's not our goal to, like, crush you. We're gonna let the, like, Dibs team keep plugging away. You know, we're gonna try stuff and experiment, but, like, I fully expect it. I don't expect it to be, like, you know, a a a a substantial line item for us more than it is, like, a strategic asset for us to, like, grow the core business.
Yeah. Would you recommend other dev tools, to do this as well?
I think you need excuses to use your product, because I I think one thing I've and and this is couple things that have happened in the last year that have gotten me back closer to the product. Because what what happens is you have some weird niche problem you discover.
Yeah.
And then you build a thing because you know a lot about it. And then you spend the next decade building a company and not working on that thing.
Yeah.
Because, like, building a company is hard. It's harder than most computer systems. It's time consuming. You're you're not as good at it as you were at the, like, computer thing you started at. So you have a lot of learning to do.
And it's just really hard to, like, also stay close to your product every day. So you have to kind of force it. And, like and and there's a lot of, like, well intentioned terrible advice out there for from a lot of, like, people in the venture class and whatever. They'll be like, oh, you need to factor yourself out and, like, you need to delegate. It's like, to a degree, yes, but, like, your product and who you're selling to is, like, the only thing that matters, really.
Everything else is, like, efficiencies and scaling and, like, bits and bop. Like, the every other team at Remedy kinda care about everybody. Right? But, like, some of these things some of these things, like, product and delivery to who consumes it, like, and what you're building, that's the core. Without that, everything else collapsed.
Lifeblood. Yeah.
Without that, you're just a financial you're just a financial instrument. And so you can't I don't think founders can lose. It doesn't have necessarily be the CEO, but, like, I think founders can't lose that. And, like, it got really hard to keep up and, like, spend enough time with the product. So a couple things.
So so, yeah, I think every dev tool, you need some you know, if if you know, I think James was talking about it. Like, Posthog uses Posthog. Right? Like, that's great. Like, if you can use your product on your product, that's ideal.
We put Posthog in the logo, I think, on the logo cloud of, like Oh, but they trusted by. Cheeky.
Yeah. Brilliant. Brilliant. I I've been meaning to do this. We we actually probably could. It's just like one of these things where, like, we're not they're really fortunate that they're an ICP for themselves, which is, like, has some real advantages. We are not. Like, we're be we get I could probably shove RevenueCat's data into RevenueCat, but, like, it would probably not
Did you, like, Dipsy buy RevenueCat or something? Yeah. Well, so that's the thing. So so
two things that happened this year. One is, like, yeah, we just we we we required Dipsea. I got put in you know, now I have Dipsea's data on my dashboard. I look at every day. Because, like, I can you know, we we have the ability to jump into a customer's page and, like, see their stuff, but it's, like, something that gets audited, and it's not something you do unless you have a reason.
Yeah.
Because it's just, like, you know, we kinda wanna keep that tight. And so I would not be able to really see how the product was functioning very easily. And so now I'm, you know, I'm a permanent collaborator on this big app, and I can see what the experience is like for them. We also launched our own mobile app this year, and I, like, worked on that project a lot. So Oh, yeah.
And and seeing Dipsy's data in our mobile app has just brought brought me a lot closer to the product. Mhmm. And I think, like, another and this is just, like, more internal stuff. But, like, we also, this past year, started doing internal shipping reviews where, like, Miguel and I are sitting with, you know, the the the heads of the little, like, teamlets that we have around the company that are working on different projects, and we're just meeting with them on a monthly basis just to be like, hey. What are you building?
Can we help? What are we building next? Like, how's it going? And and just spending more time, like, doing product rather than, like, building company stuff, like, company logistics. And I think you have to be intentional because I think that stuff just gets squeezed out if you're not if you're not intentional about making time for it. So that's I'm very I'm very happy with where I'm at the end of this year. So I'm spending a lot more time with
the product than think I was a year ago.
And it just everything gets better because, like, you just notice like, you're just the person who's allowed to complain about everything. And so, like, when there's something stupid, I could just be like, this is dumb. We should fix this. And everybody's like,
you know what? Yeah. That's a great
idea, sir. And then it gets done. Right? Like, I under there's, like, a you know, the weird power asymmetries at at a company, but I think it's not I do I think it is beneficial when the the CEO is using this stuff and, like, I can call out. Yeah.
There's often, like, this activation energy for problems that, like, little problems that are annoying, but they're not, like, existential. It takes, like, the CEO or somebody or, like, your biggest it takes somebody, quote, unquote, with clout or important to, like, make it a thing, or these little things just don't get fixed. I don't know. It's really interesting. And I actually think the the the when you add all those things up, that's how products get really crappy is it's like this you know?
It's never one bad decision. It's like a collection of, like, neglect, small neglects around the entire business and product. So yeah. So figuring out how to get that into the into the DNA of the company is an interesting challenge. Like, how do you make everybody, you you know, pick up the trash or fix the broken windows all the time, I think is a challenge.
And it's, like, because you're the one that directs a lot of the stuff. If you have, like, out of date taste on what is needed or something as the founder, it's like
Oh, yeah.
Yeah. Gonna go badly. Terrible. Yeah. Kind of you're keeping your taste up to date sort of thing. It's like
You end up you end up delegating more, which isn't necessarily bad. But then I think, like I I I think, like, as long as your timeline with the company is very long, you're probably gonna outlive most of the people that report to you and most people that work at the company. You know, if I'm a not physically human outlive, but, like, outlive in terms of life at the company. Right? And so, like, as long as you have that long term mindset, it's, like, super important that you continue to remain this, like, person who's collecting a lot of information and and and stories and lessons.
And, of course, it's good to get in writing, and it's good to, like, spread that out and, and stuff like that. But just kind of assume, you know, like, anything you delegate is gonna come back to you at some point. Right? And so you have to stay sharp, on all these things. So Yeah.
Very, very cool. I realize we're actually running out of time, Jacob. So we can do a wrap up, if that's Let's
do it, Jack. We waited this long. Yeah. It's only been three years, I think, that you've been trying to get me on the pod. I've been doing this.
So How do you? Yeah. Yeah. So okay. So, if we have the rapid fire of, advice, big takeaway for DevTools founders, and DevTool that you're excited about that isn't revenue cut.
Okay. Hit me one at a time. What was the first one? Okay.
What's your, big takeaway for DevTools founders listening?
Just have fun, I think. Just just try to have fun. I mean, I don't know. I think, especially well, Miguel and I always say to each other, do you wanna have fun or do you wanna win? That's the that's something.
No. No. No. No. No. Sorry. That's I I
I said it wrong. I said it wrong. It's do you wanna be happy or do you wanna win? That's that's
kinda what we we say to each other
when things get hard. Do you wanna be happy or do you wanna win? And that What
are you
supposed to do? I I don't know if there's an answer. It's something it's a question you have to ask yourself. Right? And because it it never it's never you know, like, I woke up at we had server alarms at 1AM last night, and here I am on the eighth year revenue cat. I broke my foot, so I jumped across my my to my office without my crutches, to get there and trying to you know?
To restart some service.
Yeah. Exactly. You know, I I actually can't do anything, but I still like to be there. And, like, if I can if I can update a status page or respond to a customer or something like that, I wanna be there when we have a SEV one. Yep.
And, you know, that's eight years in. I expect to do that for another eight years. So, like, you know, to some level, there's always gonna be a thing that gets you out of bed in the morning, you know, or, you know, gets not gets you out of bed in the morning, gets you out of bed at 1AM. Right? And so, so so yeah. And those are the moments where you're like, is this making me happy? It's like, not really, but do I wanna win? Yeah. Winning does make me happy. So, like, let's let's remember that.
And so, yeah, I mean, just just, maybe the meta advice there is is just figure out what your, like, meta motivational thing is. Like, figure out why you're doing it. Right? And make sure you have a good reason, especially once you get past that, like, early killing zone and you get something that's kind of working. Because then I really think the thing that causes people not to go long is just burning out, getting bored, you know, falling out of love with the product.
So, like, it it it is it is in your investors, customers, employees' best interest that you would do a little bit of engineering to prevent that from happening. And you can do that a ton of different ways. But but you shouldn't you shouldn't you shouldn't ignore that because it it will like, I don't know if anybody's done a study on this, but, you know, when founders leave companies, it's generally not a bullish signal. Right? It's generally a bearish signal.
And so, like, if you can prevent that from happening, I think I think that's a I think that's a good thing.
Have fun. Yeah. And then last for a last question, any dev tools that you're excited about?
Rootly is one. I've probably been using yeah. I don't know if you've had them on the podcast, but
I haven't, but I've yeah. I should.
So so it's incident it's incident resp you know, just talking about incidents, but, like, we we've had them using them lightly for about two years. But in the last year, you know, it's it's it's a you know, I wanna call it a simple tool, but it's a fairly simple tool, plugs into Slack, integrates with, like, most of your DevOps ops things. And we had this problem where, like, anytime there would be a thing, like, it could be the servers are down. It could be as small as, like, a customer has a confusing issue that's hitting a bunch of different surface areas, and, like, we're having a hard time tracking it across the company. It's in support.
It's in here. It's whatever. It's on Twitter. And, really, just as this really great tool, like, you you type slash new incident, creates an incident, it notifies a bunch of people. You you know, it's very configurable.
Oh, but the the you know, I don't think we've we make fewer mistakes now. I don't think there's less stuff. I I actually one thing we looked at how many incidents we've been declaring, and it's been going up every month. And it's actually a good thing. It's like we're just using incidents as this, like, mindset of, like, okay. Something is happening. And I think in dev tools, like, incident response and infrastructure is, like, probably one of the biggest behind the scenes challenges.
Mhmm.
And so, yeah, it's been an awesome tool for that. And, they're they're they're another YC company, I think, a couple years after us. But, yeah, but we've been super happy with that product, and it's changed a lot of the ways that we worked. So
Amazing. And, and then is there anything that you wanna shout out, revenue cat hiring, or
Yeah. Obviously, we're we're you know, we we went through a a year and a half of kinda, like, slow or hiring as we were sort of, like, finding our footing post zerp and and all of this stuff. And, I'll say footing found. And now now we have a pretty aggressive hiring plan for this coming year. We're always looking for engineers of all sorts.
So, like, hit me up or, you know, look at our site. And if there's nothing on there that looks obvious, just ping me. Like, we probably have stuff coming over the horizon. And then, you know, also, like, if you're a founder type person, I'm always, like, looking for people who are, you know, maybe maybe one to, you know, join the navy a little relative navy a little bit. So, hit me up too because I think, like, you know, the the the more I can make RevenueCat like a collection of entrepreneurial mind entrepreneurial minds and and technical builders and stuff like this, I think, I think that will scale quite well as we get bigger.
So, yeah, let me know.
Amazing. Well, thank you so much, Jacob, and thanks everyone for listening.