# OpenTest (Loom) Financial Model

Async video communication platform for business teams (internal knowledge-sharing + external customer feedback)

- Canonical: https://finamodel.com/startups/opentest-loom
- Excel download: https://finamodel.com/startup-models/opentest-loom.xlsx
- Category: Enterprise/Security
- Model type: SaaS ARR / Valuation
- Funding round: Pre-Seed
- Funding: $600k
- Founded: 2016
- Geography: US (customer logos are US companies; no geo breakdown given)
- Customer: B2B

## About the company

OpenTest, later associated with Loom, is an asynchronous video-communication platform for business teams. It supports internal knowledge sharing and external customer feedback by making recorded video a lightweight alternative to meetings and long written updates.

The product uses a freemium, seat-based B2B model, with a $10 per-seat monthly paid anchor cited in the materials. Free users help spread adoption within teams, while enterprise collaboration needs create a route to larger paid deployments.

The model follows free users through activation, conversion, paid seats, expansion, and churn. It includes video-hosting costs, gross margin, viral acquisition, conversion efficiency, sales assistance, customer support, product hiring, and the resulting ARR and cash runway.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Chrome-based screen + webcam recorder; instant shareable link
- Three-phase roadmap: (1) internal team knowledge-sharing video → (2) customer video feedback loop → (3) AI/ML insights from video metadata (sentiment analysis, audio search, eye tracking, behavioral analysis)
- Positioned as a "video CMS" bridging employee↔employee and employee↔customer async communication
- Consumer tier is a referral funnel to drive enterprise/team sign-ups
- White-label integration roadmap with chat/email providers (Intercom, Front)

## Market

- TAM: $106B SaaS software market
- SAM: $21B Enterprise Video Market
- SAM growth: Enterprise video workplace market $20.9B (2016) → $36.8B (2020), implying ~15% CAGR
- Video usage within orgs growing 50–200% annually
- 90% of surveyed respondents agree video in org tools improves knowledge sharing

## Revenue model

- Freemium: Consumer tier $0/user - unlimited recording, unlimited storage, limited features; acts as top-of-funnel
- Paid: Enterprise tier $10/seat/month - full feature set (collaboration, video CRM, integrations, analytics)
- Expansion revenue: a la carte add-ons planned (transcription, editing, sentiment analysis, video bookmarks)
- Channel: PLG (product-led growth) - free users generate organic team spread; referral gate on desktop recording upgrade
- White-label licensing to chat/email platforms: future revenue stream, not yet active

## Traction & metrics

- Launched 3 months before deck date
- 14,550+ total employees (users) across customer orgs
- 1,210+ hours of recording time logged; avg video length 1m 40s
- 57% of users returned to record 2 or more videos (repeat usage / activation proxy)
- Organic team spread: Vidyard 40 members, Uber 14 members, Zuora 13 members, Salesforce 7 members
- Notable customer logos: Uber, Salesforce, Mixpanel, Zendesk, Airbnb, Zuora, Yelp, Houzz, Intercom, HubSpot, Campaign Monitor, Disney

## Unit economics

- Note: Deck implies PLG / viral loop reduces paid CAC (referral gate drives organic team expansion) but no data provided

## Competition / moat

- Competitive positioning: 2x2 matrix - ease-of-use (x-axis) vs. consumer↔enterprise (y-axis)
- Opentest positioned as: high ease-of-use + enterprise-grade (upper-right quadrant)
- Named competitors: Kaltura, CloudApp, HYFY, Screencastify, Jing, Quicktime, Screencast-O-Matic, Recordit, Crankwheel
- Moat levers stated: (1) referral/viral distribution, (2) proprietary video metadata dataset → ML insights, (3) integrations with existing communication platforms

## Team & funding ask / use of funds

- Joe Thomas (CEO & Head of Product): Founded Redesign Agency ($0→$200k Y1); Director of Ops MediaPass (650% impression/profit growth); Director of Product MyLife ($27M raised, $0→$600k MRR)
- Shahed Khan (Head of Design & Sales): Bootstrapped TaskRabbit-like startup at 16 (0→12k Chicago users in 10 weeks); Product Designer Weebly (employee #49); Analyst Upfront Ventures
- Vinay Hiremath (Head of Technology): Intern Facebook (1.5% mobile web engagement lift); Engineer Backplane; Engineer Lead Upthere ($77M raised, video storage/streaming infra)

## Recommended financial model

- **Archetype + why:** B2B SaaS seat-based ARR model with freemium funnel. Seat-based pricing at $10/seat/month is a classic bottom-up SaaS motion; the free consumer tier drives team-level viral spread, so the model needs a free→paid conversion layer on top of a seat expansion model. Not a marketplace or transactional model.

- **Forecast horizon & granularity:** 3 years (2016–2018), monthly for Year 1 (given early stage and rapid growth), quarterly for Years 2–3.

- **Key drivers & assumptions:**

| Driver | Value / Assumption |
| -- | -- |
| Launch date | ~mid-2016 |
| Total free users at deck date | 14,550 |
| Average video length | 1m 40s |
| Repeat usage rate (activated users) | 57% |
| Enterprise price per seat/month | $10 |
| Monthly free user growth rate (Y1) | 30% MoM |
| Monthly free user growth rate (Y2–3) | 10–15% MoM tapering to 5% |
| Free-to-paid seat conversion rate | 5% of free users convert to paid seats |
| Avg seats per paying team | 10 seats |
| Monthly churn (paid seats) | 2% |
| Gross margin | 70% |
| S&M as % of revenue | 30% |
| R&D as % of revenue | 35% |
| G&A as % of revenue | 15% |
| A la carte add-on ARPU uplift | 0% in model base (toggle on in Bull) |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Base:** 30% MoM free user growth tapering; 5% paid conversion; $10 ARPU; 2% churn
  - **Bull:** Faster viral loop (40% MoM Y1); 8% paid conversion; white-label/integration revenue activates in Year 2; add-on ARPU +$3/seat
  - **Bear:** Slower organic growth (15% MoM); 3% conversion; 3.5% monthly churn (enterprise harder to land than expected); monetization delayed 2 quarters

- **Required sheets / outputs:**
  1. Assumptions - all drivers, clearly labeled vs
  2. Free User Funnel - total registered users, MoM growth, activated users (57% cohort)
  3. Paid Seats model - free→paid conversion, avg team size, seat expansion, churn waterfall
  4. Revenue - MRR and ARR build (seat revenue + add-on toggle)
  5. P&L - Gross profit, S&M, R&D, G&A, EBITDA, net loss
  6. Cash / Runway - burn rate, implied months of runway (funding raise assumed as input)
  7. KPI Summary - MRR, ARR, total users, paid seats, MoM growth, net churn, LTV/CAC (once CAC data available)
  8. Scenario toggle - Base / Bull / Bear switchable via dropdown

## Frequently asked questions

### Is the OpenTest (Loom) financial model free?

Yes. The OpenTest (Loom) model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.