Heatmap Q1 Investor Update

Excited for another investor update for you! Wherever you are, hope it's warmer than NYC, we’re having a second winter come back…

For my quick readers:

Heatmap continues to ship features, grow, and achieved infinite runway this month. I spoke to the C-suite of ALDO, Sperry’s, and Goli literally today, Wednesday the 29th. Huge pipeline. Quick financial breakdown: 

• ARR: $2.1m (up 9%) 🟢

• MRR: $173K 🟢

• Trial-to-paid: 62% 🟢🟢🟢

• CAC: ~$325 (blended) 🟢🟢🟢

• LTV: $3,642 🟢🟢

• Sales close rate: 74% 🟢🟢🟢

• Monthly churn: 4.9% monthly (down from 5.5%) 🟢🟢

• Monthly reactivation/Expansion rate: 3.2% 🟢🟢🟢

Big 3 drivers:

• Huge cost reductions from AI

• SEO/LLMs are referring ~15% of new rev. This is now a moat. 

• Product releases are the largest driver of growth

Peak Q1 Product Release 

After a tame Q4 (as expected for ecom’s BFCM season) our Q1 picked up. March as our 2nd largest growth month. It was our lowest churn month. Our largest partner-pipeline by 3x any other month.

We launched Journey Analysis, Custom Tags, and our API (you can read about them here). We sent Slack messages to 50+ agencies with this release, which tripled our partner pipeline in March.

Now, it’s time to ship new features, grow faster, and improve retention. We’re all-in on Context Engineering, AKA, we write 90% of our code with AI.

Upcoming Roadmap 

In May, we’re launching our first-party, “Talk to My Website” AI product.

The near-term of “digital marketing” is integrating as many APIs and MCPs together and prompting AI… we are perfect for the AI Era as we collect data that no other company does. In the tune of 17 trillion datapoints stored.

50+ brands use our private API today. Our Heatmap MCP is in Beta and one agency “hasn’t hit a losing split test on any client since they got access to Heatmap’s MCP.” That was cool to hear. 

Efficiency, AI, and Team Size

In our Q3 investor update, I estimated a 40% increase in development efficiency from AI. Now, we have 24 devs (previously 32). Our CS ticket SLAs have improved 300%, from 72h to an average of 26h.

In our GTM team, we downsized headcount as we have Manus agents making tons of content. Hubspot is integrated with Claude, we can talk to our sales pipeline, just as Heatmap customers talk to their data. 

SEO & AI Referrals (GEO/AI SEO) 

Google and LLMs are over 15% of new sales. These organic channels we’ve invested into are paying off as they require very little incremental budget to improve now.

Whether you use chatGPT, Claude, Gemini (my personal day to day, highly recommend) you’ll see “the best heatmap for ecommerce” is unanimously Heatmap.com on all platforms. Go try it yourself! Here’s an image of Gemini showing us as “The Gold Standard” for Shopify. 

Top 3 Focuses

1. Highly frequent, smaller, product releases (like Beehiiv in 2025)

2. Retention  → We’ve reallocated our CRO experts’ time into a more Customer Success-driven role managing a book of businesses 2.5x salary.

3. SEO/GEO/Organic Channels → 30k newsletter list, bump frequency of email newsletters, higher cold outbound, big SEO & GEO focus (LLM recommendations), and our tried-and-true online events.

Our Asks to You: 

1. Introductions to media sources (for marketers) → organic distribution, we always create stellar content for partners

2. Introduction to Partner & Affiliate Manager → our partnerships are fruitful, so we’re looking to hire a Partner & Affiliate Manager. Would love an intro to any leads.

Appreciate your belief and continued support.

~Dylan