What a year! Things went by so swiftly we’re all just catching our breath. So I thought I’d put down some thoughts on 2012 which was our best year ever, and marks another step along the path of growth we’ve been on since creating the company back in 2006. Our revenue grew by 35% over the previous year, enabling us to again outpace the industry in both top-line revenue growth and growth of net income.
In 2012 and we also grew our base of highly talented employees—by 30%. We see our growth in revenue and our growth in the size of our team as two figures that go together well. This is because the high quality of people we’ve been fortunate to find is something we constantly hear about from our customers. Much of our business is from word-of-mouth referrals. People come to SingleHop to experience the industry’s best customer service. And many feel as if before arriving here they had experienced in one way or another some of the Industry’s worst.
Speaking customer service, we were proud this year to launch our groudbreaking Customer Bill of Rights. We got a lot of industry attention for doing what seemed just natural to us. What really caught people’s attention was that with the SingleHop Bill of Rights we go beyond big promises. We actually spell out specific SLAs and then use the same proprietary automation that allows us to make such an offer to monitor our operations and then automatically credit users with cash if we ever fall below an SLA. When people ask how we can do that, my reply is: “Here’s the backstory . . . we spent our first two years of business simply creating the processes and automations that we built SingleHop on.” And then I confess we had already been using even tighter SLAs internally since day one. So we just decided to put a public face on what we were already doing. Customers love it. And they deserve it.
2012 was also the year we opened our third data center, and our first outside of the Chicago area. Our new Phoenix data center was created to better serve our growing West Coast customer base, but many of our East Coast and Midwest customers are using it as a geographically dispersed point for disaster recovery purposes. Our organic expansion continues, with our new Amsterdam data center expected to come online early this year to support our European operations. Using your LEAP Control Center you can specify with a click which data centers you want to use.
With all of our growth and our rabidly faithful customer base, we were delighted with another 2012 milestone—completing our first ever institutional financing, a $27.5 million round led by the legendary Battery Ventures. When the deal was announced, Dave Tabors, Battery Ventures General Partner, spoke of our customer loyalty, born of our great automation technology.
“Customers are happy and sticking around, and that’s a direct result of the company’s business model, coupled with superior technology and a smart leadership team,” Tabors said. “We’re really looking forward to helping this company scale.”
We’re looking forward to that, too.
Which means that when I write this letter next year, there should be even more great news to share.
In the meantime we’ll remain focused on what has brought us this far: Providing our customers with the industry-leading infrastructure and service that they deserve.