GTM Sauce

B2B · software for dental practices

How Practice by Numbers grows

7 tactics and 25 figures from 1 interview.

practicenumbers.com

Practice by Numbers sells software to dental offices. It started as analytics built on top of the practice software dentists already used, then grew into an all-in-one suite, with nearly all sales coming inbound from dentist referrals. Staying bootstrapped, it reported ARR rising from about $2M at the end of 2021 to $12.5M at the end of 2025.

Summary written 2026-09-26 from the tactics below. Figures are as founders stated them.

About Practice by Numbers

What it is
All-in-one dental practice SaaS on top of the practice management system: analytics, patient communications, online booking, forms, VoIP phones, payments, websites, AI
Who it's for
Dental practices and multi-location dental groups (dentists, periodontists, orthodontists)
Business model
Per-location annual subscription with modular packages (voice, AI, payments layered on) plus payments take rate
Pricing
~$12-13K per location per year average; Up to ~$17-19K per location per year with all modules; Packages build from a basic operations core up to 'thrive'
Launched
2015
Team
~80 people (42-43 US, rest India); 17-18 developers, 3-4 on agentic workflows
Funding
bootstrapped
Outcome
Operating; $12.5M ARR end of 2025, targeting $16.5M end of 2026

As described in the interviews, not independently verified.

Practice by Numbers's 7 tactics

Practice by Numbers · B2B · software for dental practices

~$12-13K per location a year on average; up to ~$18-19K

Cover the 'white space' around the PMS: analytics, online booking, intake forms, VoIP phones, payment terminals, websites, and now AI (call recording/transcription, intent and sentiment, AI receptionist). Customers build a package; voice, AI and payments layer on top of a basic operations core; most buy the larger packages.

Workedupsell-expansionpricing
Top Founders with Nathan Latka · 2026-08-11

Practice by Numbers · B2B · software for dental practices

~$190M processed of ~$2B possible; profitable but switching is hard

Launched payments in 2025 via Adyen and Stripe card terminals, earning a take rate. Pitch to existing customers: card on file, PCI compliance, payment plans. Motion is outbound calls to installed offices that are on autopilot with bank/Costco processors; hiring people to drive it. Hardest part is SMB change management.

Mixedupsell-expansionpayments-checkout
Top Founders with Nathan Latka · 2026-08-11

Practice by Numbers · B2B · software for dental practices

ARR ~$2M -> $12.5M from 2021 to 2025

All sales are inbound; almost everything comes from dentists telling other dentists. They attend some dental trade shows, which 'produce a little bit'. Strong support (G2 reviews cited) keeps customers happy and referring. No paid acquisition described.

Workedword-of-mouthevents
Top Founders with Nathan Latka · 2026-08-11

Practice by Numbers · B2B · software for dental practices

$12.5M ARR, 22-24% EBITDA, ~$1.5M free cash flow in 2025

Zero outside capital. Deliberately grows 35-40%/yr at ~22-24% EBITDA ('rule of 70-80') rather than adding fuel; argues buying revenue gives a short-term hump and possibly the wrong customers, and a slow-moving market doesn't reward speed. Co-founder treats it as a legacy business.

Workedfinancing
Top Founders with Nathan Latka · 2026-08-11

Practice by Numbers · B2B · software for dental practices

Became the wedge for the later all-in-one platform

Instead of replacing the dental PMS, sit on top of it: pull data from the PMS (Dentrix, Open Dental etc.), QuickBooks, phones and Google Analytics into business/revenue analytics that existed in medical but not dental. Integrate only with the five dominant PMS vendors, which cover the 70-80K target offices, rather than long-tail systems.

Workedintegrations-marketplacespositioning-niche
Top Founders with Nathan Latka · 2026-08-11

Practice by Numbers · B2B · software for dental practices

For years he answered his dentist wife's business questions (treatment acceptance, marketing ROI, hygienist performance) with spreadsheets and SQL queries against her practice database, then built the analytics product in 2015 around those questions.

Workedvalidation
Top Founders with Nathan Latka · 2026-08-11

Practice by Numbers · B2B · software for dental practices

Plan: sell the full codified system for running a dental office (agents doing the work of 2-3 employees) priced as a percentage of the practice's revenue rather than per-feature software; not per-event outcome pricing, which they haven't considered.

Unknownpricing
Top Founders with Nathan Latka · 2026-08-11

Practice by Numbers by the numbers

MetricValueContextSaid in
arrUSD 1M
approximate
Top Founders with Nathan Latka
2026-08-11
10:56
arrUSD 2M
approximate
After COVID setback and 2021 relaunchTop Founders with Nathan Latka
2026-08-11
10:44
arrUSD 4M
estimate
Top Founders with Nathan Latka
2026-08-11
11:12
arrUSD 8M
approximate
Host's extrapolation, confirmed by guestTop Founders with Nathan Latka
2026-08-11
11:18
arrUSD 12.5M
approximate
Top Founders with Nathan Latka
2026-08-11
11:31
arrUSD 16.5M
projection
Expected year-end 2026 ARR (recorded April 2026)Top Founders with Nathan Latka
2026-08-11
10:49
arrUSD 15M–16M
estimate
Host's calculation: ~1,300 customers x $13K ACV; guest answered with the year-end target insteadTop Founders with Nathan Latka
2026-08-11
10:22
growth rate+35–40%/year
projection
Top Founders with Nathan Latka
2026-08-11
12:09
margin22–24%/year
estimate
EBITDA margin; books not fully closedTop Founders with Nathan Latka
2026-08-11
13:16
profitUSD 1.5M/year
approximate
Free cash flowTop Founders with Nathan Latka
2026-08-11
13:23
funding raisedUSD 0Top Founders with Nathan Latka
2026-08-11
11:52
acvUSD 12K–13Kper location /year
approximate
Average per dental locationTop Founders with Nathan Latka
2026-08-11
6:08
acvUSD 18K–19Kper location /year
approximate
Per-location price with all modules layered on (voice, AI, payments)Top Founders with Nathan Latka
2026-08-11
6:53
acvUSD 720Kper customer /year
estimate
Host's calculation for largest customer (40 locations x $18K); corrected by guestTop Founders with Nathan Latka
2026-08-11
6:32
acvUSD 250Kper customer /year
approximate
Largest customer (~40 locations), not on all modulesTop Founders with Nathan Latka
2026-08-11
6:40
customers1,300–1,400 customers
approximate
Top-level customers (accounts)Top Founders with Nathan Latka
2026-08-11
9:53
customers5,000–6,000 locationsper location
estimate
Host's guess of locations; corrected to ~2,000 locations (5-6K is providers)Top Founders with Nathan Latka
2026-08-11
10:00
customers2,000 locationsper location
approximate
Top Founders with Nathan Latka
2026-08-11
10:03
users5,000–6,000 providers
approximate
Providers (dentists, periodontists, orthodontists) across customer locationsTop Founders with Nathan Latka
2026-08-11
10:03
gmvUSD 190M/year
approximate
Payment volume processed through PBN payments (launched 2025)Top Founders with Nathan Latka
2026-08-11
7:53
gmvUSD 2,000M/year
estimate
Total payment volume addressable within existing customer base (collections per location x locations, adjusted for insurance checks)Top Founders with Nathan Latka
2026-08-11
7:59
count5 integrationsPMS integrations listed/built; covers the dominant PMS vendorsTop Founders with Nathan Latka
2026-08-11
5:48
team size80 people
approximate
42-43 in the US, rest in IndiaTop Founders with Nathan Latka
2026-08-11
16:52
team size17–18 people
approximate
Developers; 3-4 of them focused on agentic workflowsTop Founders with Nathan Latka
2026-08-11
17:00
revenueUSD 100M/year
goal
10-year revenue ambitionTop Founders with Nathan Latka
2026-08-11
18:08

Topics

Interviews