01:19:35 · Jordi Hays, Rahul Sengottuvelu, John Coogan
[01:19:35] S0: Yeah. How are... I imagine there's, like, a bunch of other products like this that you guys are using right now as internal tools. What... Talk about the decision making process of when you wanna open them up to other people through AMP customer base versus when they should just stay internal tools. [01:19:53] S5: Yeah. Great question. I mean, there's a ton of complexity in automation that actually inspect sets up for us. And so a lot of our automations and internal tools actually works on top of Inspect's API. So for us, Inspect is an internal coworker. You tell Inspect, hey, this person said they had a bug or something is slow or something is not working or their support they wrote in or we would like to sell to them, so what should we say to them? All all kinds of this this job you can offload inspect because it's plugged into ramp systems. And so we've also since then set up automations to review code to make sure that code is working correctly when it gets to production. Cyber security is a big one for inspect. And so all of these internal automations have now kind of been sitting on top of this. And so for us, it's the bedrock, which sits on top of a router. So we're building these layers of abstractions, and then we can expose to our customers. [01:20:41] S1: Well, congratulations on the launch. I'm gonna hit the going for [01:20:43] S0: Big one. [01:20:46] S1: Thank you so much for coming on the show. [01:20:48] S0: Very cool launch. Congratulations. Congrats to the team.
01:20:48 · Jordi Hays, John Coogan, Gavin Baker
[01:20:48] S0: Very cool launch. Congratulations. Congrats to the team. [01:20:50] S1: With the rollout. We will talk to you soon. Have a great rest of your day. Goodbye. Cheers. Let me tell you about the New York Stock Exchange. Wanna change the world? Raise capital at the New York Stock Exchange. It's right down the street from Ramp. You can go from one to the other in just a few minutes. Our next guest is Gavin Baker from Atrades Management, the managing partner. [01:21:11] S0: I have Heard of him. [01:21:12] S1: He's on the go before. [01:21:14] S0: The Baconator. [01:21:15] S1: We're gonna bring him in to the TBP And Ultradome and catch up with him. How are doing, Gavin? Good to see you. [01:21:20] S2: I'm awesome, man. Happiness is a choice. I'm only ever fantastic, awesome, superb, [01:21:26] S1: phenomenal. I mean, I I completely agree. I love that happiness is a choice, but also it feels like this is a week to be extra happy. Like, the Anthropic s one went out, and it seemed like a beat. It seemed like like if you were worried, oh, the economics are not working secretly behind the scenes and there's gonna be some bombshell in there, the haters have been kinda quiet. Ed Zetrin hasn't posted. Like, things are... You know, it seems like things are on track. But what is your interpretation been this week? [01:21:54] S2: I do think the Anthropic s one was pretty clearly an upside surprise. Yeah. The fact that they've only burned $10,000,000,000. [01:22:02] S1: Yeah.
01:22:02 · John Coogan, Gavin Baker, Jordi Hays
[01:22:02] S1: Yeah. [01:22:02] S2: The profitability, the cash generation, the unit economics, they're all very encouraging. The... You know, I put it on x, but I just cannot believe that whatever it is, half of the fortune 500 is adopted in profit and it's 0.1% of their expenses. [01:22:23] S1: Yeah. [01:22:24] S2: It's just a wild stat. [01:22:26] S1: Yeah. The the funny thing is that [01:22:28] S2: The Internet just come [01:22:28] S1: I read that I read that as the [01:22:30] S0: Yeah. We can still hear you. [01:22:31] S1: No. No. Yeah. We can hear you. I I read that 50%. [01:22:35] S0: No. What? Yeah. [01:22:36] S1: Yeah. Oh, just as like like, okay. Yeah. That's incredibly impressive for a company in just a few years to get to half the fortune five hundred or the S and P five hundred on as customers. But I was kind of like, what are the other half of the S and P five hundred doing? I felt like every Fortune five hundred would... Or or S and P five hundred would be multiproduct using everything, but there's a lot of companies that just haven't really gotten through the adoption hiccups of rolling out AI broadly. Maybe some of them are all in on Google or OpenAI. But by and large, I think some of them are just still figuring out how AI can be deployed in their organizations. But is that your read on it that we're still sort of early on the diffusion story in Enterprise? [01:23:16] S2: Yeah. Very early. I mean, if anything, maybe earlier than I thought we were. Yeah. And it's... I mean, it's just astonishing. Whatever the number is, 67,000,000,000 [01:23:26] S1: Yeah.
01:23:26 · John Coogan, Gavin Baker
[01:23:26] S1: Yeah. [01:23:26] S2: Annualized. If you annualize the reported third quarter, the... You know, wherever the ARR is right now. But to be that big with such low penetration into the Fortune 500 Yeah. Is crazy. It is pretty extraordinary. [01:23:43] S1: Yeah. Totally. Yeah.
01:23:43 · John Coogan, Jordi Hays
[01:23:43] S1: Yeah. Totally. Yeah. [01:23:44] S0: How do you... How how do you process the... Like, some of the criticism right now of the AI trade is that you have a very small number of companies driving the majority of the spend. Think I if you can look historically and say that that same dynamic probably played out with like social media ads, where like a very small number of companies were driving a massive amount of the spend. And so you're gonna kinda see power laws in a lot of places. My read on it is that you have, like, there are companies based in San Francisco that are just a thousand times more obsessed with AI than the than the say... Let's say like the long tail of public company employees. And so of course they're gonna spend dramatically more. And it's possible that that long tail never actually cares enough, but they sort of fade to relative obscurity. And you have the disruptors that are saying like, yeah, this technology is real. It works. It's not perfect yet. It's not like a drop in coworker that immediately, you give it a dollar and will give you $10 back. But it's very capable, and so if you obsess over it. And so that's been sort of my overall read. Like, I don't think it's necessarily... Of course, you'd want a more diversified revenue base if you could. But in general, it feels very natural that all the spend is coming from a very small group of people that like realize that something fundamental has changed and they're trying to take every advantage of it while the rest of the world is asleep.
01:25:09 · Gavin Baker, Jordi Hays, John Coogan
[01:25:09] S2: I might respectfully disagree a little. In S1, there are only 250 accounts spending more than $10,000,000. So actually, know, somebody in the New York Times said that, you know, maybe ten days ago that 80% of the revenue came from eight customers. I was actually shocked how diversified their customer base actually was. And if you are... [01:25:34] S0: Well, the the number to me was the the... Something like eleven or twelve thousand spending over a $100,000. Like that that feels diversified. [01:25:41] S2: Oh, yeah. [01:25:42] S0: But I'm but I'm talking about like the ramp data that's saying like, look, like 1% of companies are spending, you know, 90% of the dollars. [01:25:51] S2: Well, I I mean, the ramp data is what it is, but we have much more authoritative data now from the Anthropic S1. [01:25:58] S1: Yeah. [01:25:58] S2: Yeah. And it shows a very diversified spending base for Anthropic. Yeah. Now maybe the ramp data is correct for AI overall. Sure. But the Anthropic S1, like relative to a thought that, you know, Meta was spending 10,000,000,000. [01:26:13] S1: Yep.