Matthew Elson - Building sustainable profitability with purpose

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.

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 & 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.

In our conversation we cover:

• The use of unit economics and the ‘Rule of 40’ to monitor performance
• Tracking gross retention to ensure you are building a profitable customer base
• Splitting the business in two, where the margins from the profitable customer base funds the growth of the loss-making part acquiring new customers
• Using recurring revenue per full time employee as a key metric for driving long term sustainable profitability
• Entering new markets as a value creation strategy
• Investing in operational capability to avoid bottlenecks and add value
• Fulfilling purpose in the business to drive long-term growth
• Selecting an acquisition partner with aligned values

We cover these topics and many others extensively in How to Scale, 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 Linkedin 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 email us. We’d love to hear from you.

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