AI-Powered Sales Prediction Startup Gong Reaches $300M in Annualized Recurring Revenue

Gong, a startup utilizing AI to help companies forecast their potential sales revenue, has announced that it has surpassed $300 million in annualized recurring revenue. Since its establishment in 2016, Gong has been leveraging AI to analyze customer interactions. The incorporation of generative AI capabilities in recent years has significantly contributed to the company's expansion.

Gong was last valued at $7.25 billion following a $250 million Series E funding round in 2021, with Franklin Templeton leading the deal and participation from Coatue, Salesforce Ventures, Sequoia, Thrive Capital, and Tiger Global. While some companies funded in 2020 and 2021 struggle to justify their inflated valuations relative to their revenue, Gong's latest ARR figure implies a valuation of roughly 24 times ARR, positioning the company alongside major AI companies.

Despite this, Gong's valuation may still be relatively high compared to newer, rapidly growing AI startups. For example, Anysphere, the creator of AI-powered coding assistant Cursor, recently achieved a valuation of 25 times ARR, having reached $100M in ARR from low-single millions in less than a year. Bendov did not disclose Gong's revenue growth but indicated that it is in line with top-quartile public SaaS companies.

The company boasts 4,500 corporate customers, including Canva, Google, LinkedIn, and Square. Gong's current ARR and growth trajectory indicate a potential path to an IPO, although Bendov stated that it is not planned for 2025. He emphasized the focus on product development over an IPO and mentioned that the company is close to profitability and has substantial remaining funds from the 2021 round.