Practice by Numbers · B2B · software for dental practices
Stay bootstrapped and grow 35-40% a year instead of buying revenue
$12.5M ARR, 22-24% EBITDA, ~$1.5M free cash flow in 2025
Workedfinancing
What they did
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.
What happened
$12.5M ARR end 2025, 22-24% EBITDA, ~$1.5M free cash flow in 2025
Related topics
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More from this episode
- Practice by Numbers: Grow on dentist referrals, great support and a few trade showsARR ~$2M -> $12.5M from 2021 to 2025
- Practice by Numbers: Add analytics on top of the software dentists already use, not replace itBecame the wedge for the later all-in-one platform
- Practice by Numbers: Grow one tool into an all-in-one suite sold as packages~$12-13K per location a year on average; up to ~$18-19K
- Practice by Numbers: Call existing customers to switch their card payments to you for a cut~$190M processed of ~$2B possible; profitable but switching is hard
- Practice by Numbers: Charge a percentage of the practice's revenue instead of per-feature fees
- Practice by Numbers: Answer a real business owner's data questions by hand before building