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AI Performance Management SaaS for SMBs — $148K ARR, 75% Operating Margins, Profitable

P&L Documents (1)Supporting files (5)
Asking Price
$275k
Multiples
7.2x profit 1.7x revenue
Annual Growth Rate
+10%
TTM Revenue
$159k
Profit
$38k
Last Month's Revenue
$12.4k
Profit
$-2k

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United States

AI Performance Management SaaS for SMBs — $148K ARR, 75% Operating Margins, Profitable

This is an established AI-powered performance management platform built for small and mid-sized companies. Over six years in operation, with a stable, paying customer base across the US, EU, and Asia. The product was an early mover in applying AI to the HR space - continuous feedback, goal tracking, and engagement insights that replace the broken once-a-year review cycle most teams still rely on. Why this is a strong acquisition * $148K ARR with MRR of $12,333, verified from the billing platform * 95% recurring revenue - a clean subscription book * 75% projected operating margin on a lean ~$3,250/mo post-sale cost base * ~$109K annualized operating income under a flat-MRR scenario (no growth required to hit this) * Sticky annual contracts with predictable renewal schedule and multi-year tenure at the top of the book * Diversified customer base spanning legal, defense, SaaS, manufacturing, healthcare, government, and consumer brands * Modern stack, AI features already shipped - no replatform or technical debt blockers * Global footprint with customers across multiple continents The opportunity The performance management category is large and growing, and SMBs remain dramatically underserved by the enterprise-focused incumbents. This platform sits in a sweet spot — sophisticated enough for serious HR teams, accessible enough for companies without dedicated HR ops. Two active referral partnerships are already driving deal flow: * An established enterprise partner sending qualified referrals into the SMB pipeline * An early-stage PEO partner building a referral motion into their customer base These channels are operating today and transfer with the business. A buyer doesn't need to build a channel from scratch — there is meaningful room to expand both relationships, layer in additional partnerships, and grow through SEO, integrations, and adjacent product expansion (OKRs, learning, performance reviews tied to compensation). A buyer with bandwidth and a growth playbook can compound this materially. Annual renewals cluster in three peak months of the forward period, giving a new owner clear cash visibility and natural moments to reinvest. The post-sale cost structure has been pre-engineered to be lean and operator-friendly - about $3,250/mo, which is what the 75% operating margin is built on. Transition support The founder is available for transition consulting. The intent is a real handover - platform walkthroughs, customer intros where it makes sense, vendor and infrastructure context, and ongoing availability during the buyer's ramp-up. Terms negotiable. The founder is divesting to focus on a separate venture. The performance management product is independently viable, has a clean customer base, and the cost structure has already been re-engineered to be turnkey for the next operator. Full pro-forma - MRR roll, cash collections schedule with the annual renewal calendar, growth scenarios — available under NDA.
Asking Price
$275k
Multiples
7.2x profit 1.7x revenue
The asking price divided by TTM net profit and TTM gross revenue.
Learn more about multiples
Asking Price Reasoning
Priced at 2.3x ARR and ~3.2x annualized operating income. That's below the 2026 private SMB SaaS median (3.5-4x ARR) because I'd rather move on a 60-90 day close than hold out for an extra turn on the multiple. The business throws off ~$109K/yr in operating income on a $3,250/mo cost base. At $345K, a buyer's getting roughly a 3-year payback on cash flow alone, before any upside from the two referral partnerships or product growth. A few things I'm not asking buyers to pay for: the AI defensibility premium (that's earned in diligence, not the listing), strategic-acquirer multiples (wrong buyer pool at this size), or a growth-story multiple I haven't earned (MRR has been flat). I've priced this for an operator, not a strategic.
Recent performance
TTM Revenue
Trailing twelve month (TTM) gross revenue.
$159k last 12 months gross revenue
TTM Profit
Trailing twelve month (TTM) net profit.
$38k last 12 months net profit
Last Months Revenue
Total gross revenue last month.
$12.4k last month gross revenue
Last Months Profit
Total net profit last month.
$-2k last month net profit
Customer metrics
Customers
Total unique customers who have made a purchase.
10-50 Customers
Annual Recurring Revenue
The total recurring revenue over the last full month, annualized (MRR × 12). Excludes one-time fees and variable usage revenue.
$143.8k ARR
Annual Growth Rate
The percentage change in revenue over the last 12 months compared to the previous 12 months.
+10% Annual Growth Rate
Churn Rate
The percentage of paying customers lost over the last 12 months.
1-3% downwards Churn Rate
Company overview
Date Founded
August 2019
Team Size
Small (2-20)
Business Model
  • Business-to-business (B2B)
Tech Stack
  • Python
  • Spring
  • React
  • Java
  • Kotlin
  • Amazon Web Services
  • OpenAI
Growth Opportunities
  • Improve conversion rates
  • Increase content marketing
  • Focus on SEO
  • New product features
  • Hire a sales team
Competitors
  • Lattice
  • Leapsome
  • BetterWorks
Key Assets
  • Customers
  • Trademarks
  • Marketing materials
  • Social media accounts
  • Copyright
  • Brand
  • Codebase
  • Intellectual property
  • Mobile application
  • Domain
  • Website
  • Trade names
Acquisition details
Selling Reasoning
  • Financial gain
  • Starting a new venture
Parts of the team are available to continue helping or developing the platform on a consulting basis.
Financing
  • Loans
  • Angel investment
  • Venture capital
  • Bootstrapped
Verified business
Business address and incorporation certificate verified (US entities only).

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