GTM Sauce

Top Founders with Nathan Latka · 2026-08-11

How He Bootstrapped Dental Software to $16m

Rohit, co-founder of Practice by Numbers (all-in-one dental practice platform sitting on top of PMS systems like Dentrix/Open Dental), bootstrapped with zero outside capital: ~$1M ARR in 2018, cut to ~$2M after COVID (relaunched 2021), $12.5M end of 2025, targeting $16.5M in 2026. ~1,300-1,400 customers / ~2,000 locations at ~$12-13K per location per year. All sales inbound/word of mouth plus some trade shows. ~22-24% EBITDA, ~$1.5M FCF in 2025. Payments launched 2025 with ~$190M GMV vs ~$2B possible.

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7 tactics

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.

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Top Founders with Nathan Latka · 2026-08-11

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.

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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 · 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

Numbers mentioned

WhoMetricValueContextWhen
Practice by NumbersarrUSD 1M
approximate
10:56
Practice by NumbersarrUSD 2M
approximate
After COVID setback and 2021 relaunch10:44
Practice by NumbersarrUSD 4M
estimate
11:12
Practice by NumbersarrUSD 8M
approximate
Host's extrapolation, confirmed by guest11:18
Practice by NumbersarrUSD 12.5M
approximate
11:31
Practice by NumbersarrUSD 16.5M
projection
Expected year-end 2026 ARR (recorded April 2026)10:49
Practice by NumbersarrUSD 15M–16M
estimate
Host's calculation: ~1,300 customers x $13K ACV; guest answered with the year-end target instead10:22
Practice by Numbersgrowth rate+35–40%/year
projection
12:09
Practice by Numbersmargin22–24%/year
estimate
EBITDA margin; books not fully closed13:16
Practice by NumbersprofitUSD 1.5M/year
approximate
Free cash flow13:23
Practice by Numbersfunding raisedUSD 011:52
Practice by NumbersacvUSD 12K–13Kper location /year
approximate
Average per dental location6:08
Practice by NumbersacvUSD 18K–19Kper location /year
approximate
Per-location price with all modules layered on (voice, AI, payments)6:53
Practice by NumbersacvUSD 720Kper customer /year
estimate
Host's calculation for largest customer (40 locations x $18K); corrected by guest6:32
Practice by NumbersacvUSD 250Kper customer /year
approximate
Largest customer (~40 locations), not on all modules6:40
Practice by Numberscustomers1,300–1,400 customers
approximate
Top-level customers (accounts)9:53
Practice by Numberscustomers5,000–6,000 locationsper location
estimate
Host's guess of locations; corrected to ~2,000 locations (5-6K is providers)10:00
Practice by Numberscustomers2,000 locationsper location
approximate
10:03
Practice by Numbersusers5,000–6,000 providers
approximate
Providers (dentists, periodontists, orthodontists) across customer locations10:03
Practice by NumbersgmvUSD 190M/year
approximate
Payment volume processed through PBN payments (launched 2025)7:53
Practice by NumbersgmvUSD 2,000M/year
estimate
Total payment volume addressable within existing customer base (collections per location x locations, adjusted for insurance checks)7:59
aggregatePractice by Numbers' dental customers vs. national average dental practicerevenue2 x
approximate
Customers' production (revenue) relative to national average; 'almost 2x'4:06
marketUS dental offices covered by the five dominant practice management systems PBN integrates withmarket size70K–80K dental offices
approximate
5:57
Practice by Numberscount5 integrationsPMS integrations listed/built; covers the dominant PMS vendors5:48
Practice by Numbersteam size80 people
approximate
42-43 in the US, rest in India16:52
Practice by Numbersteam size17–18 people
approximate
Developers; 3-4 of them focused on agentic workflows17:00
Practice by NumbersrevenueUSD 100M/year
goal
10-year revenue ambition18:08