{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/62b46c1e5dd83d001220600f/65df2a84542f230016219996?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"Matthew Elson - Building sustainable profitability with purpose","thumbnail_width":200,"thumbnail_height":200,"thumbnail_url":"https://open-images.acast.com/shows/62b46c1e5dd83d001220600f/1709125020432-d3ecf3349491e23735f927369fe06975.jpeg?height=200","description":"<p>In the 3rd episode of the second season of Frog’s How to Scale podcast, Senior Partner Steven Dunne speaks with Matthew Elson, CEO of Evotix, about how entrepreneurs can create a purposeful business that builds sustainable profitability through the scaling journey.</p><p><br></p><p>Matthew has been CEO at Evotix since buying the business for £1 in 2011 and has continuously grown 30-40% year-on-year under Matthew’s leadership, transforming how companies manage Health, Safety &amp; Risk, and engaging with their employees to deliver safe, nurturing and compliant workplaces. Frog invested in Evotix in January 2020 when they had reached £6m ARR and were acquired in May 2023 by which time they had reached profitability and passed £20m ARR.</p><p><br></p><p>In our conversation we cover:</p><ul><li>The use of unit economics and the ‘Rule of 40’ to monitor performance</li><li>Tracking gross retention to ensure you are building a profitable customer base</li><li>Splitting the business in two, where the margins from the profitable customer base funds the growth of the loss-making part acquiring new customers</li><li>Using recurring revenue per full time employee as a key metric for driving long term sustainable profitability</li><li>Entering new markets as a value creation strategy</li><li>Investing in operational capability to avoid bottlenecks and add value</li><li>Fulfilling purpose in the business to drive long-term growth</li><li>Selecting an acquisition partner with aligned values</li></ul><p><br></p><p>We cover these topics and many others extensively in <a href=\"https://frogcapital.com/scale-up/\" rel=\"noopener noreferrer\" target=\"_blank\">How to Scale</a>, Frog’s library of Scale-Up insights, including further episodes of the podcast and Scale-Up toolkits from our Frog Operating Partners. Subscribe to our podcast or follow us on <a href=\"https://www.linkedin.com/company/frog-capital/\" rel=\"noopener noreferrer\" target=\"_blank\">Linkedin</a> to ensure you never miss a new episode. We welcome all feedback, questions or topic suggestions for us to cover in future episodes, so please <a href=\"mailto:howtoscale@frogcapital.com\" rel=\"noopener noreferrer\" target=\"_blank\">email us</a>. We’d love to hear from you.</p>","author_name":"Jens Düing"}