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  #1  
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INC 500 list of 500 fastest growing companies includes 4 web hosts you'll recognize


Just picked up the INC500 magazine on my flight home yesterday, and noticed a few companies on their list of 500 fastest growing private companies, that everyone here should recognize:

Rank#25 -- SingleHop -- 7,304.7% 3 year growth rate -- $12.6 million 2010 revenue -- 43 employees - founded 2006

Rank#254 -- WiredTree -- 1,256.6% 3 year growth rate -- $4.3 million 2010 revenue -- 21 employees -- founded 2006

Rank#277 -- Softlayer -- 1,178% 3 year growth rate -- $278.8 million 2010 revenue -- 550 employees -- founded 2005

Rank#298 -- Linode -- 1,087.4% 3 year growth rate -- $10.7 million 2010 revenue -- 19 employees, founded 2003

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  #2  
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Yea saw this a few days ago . Pretty impressive on the amount of employee's on WiredTree & Linode.

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Not surprised one bit either. Congratulations to them!

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  #4  
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Wow, thanks for sharing Gabe! Interesting statistics there.

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  #5  
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I expected Softlayer on there and figured liquidweb would be but I guess not. Never expected wiredtree or linode on the list considering I haven't seen wiredtree mentioned much on the other forums I am on and figured linode was slowing down with customer gain.


What are the average customer to employee ratio's people are typically going by with both managed and unmanaged providers. The employee amounts seem a bit low to me coming from the amount of staff I work with currently.

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Quote:
Originally Posted by techjr View Post
I expected Softlayer on there and figured liquidweb would be but I guess not. Never expected wiredtree or linode on the list considering I haven't seen wiredtree mentioned much on the other forums I am on and figured linode was slowing down with customer gain.


What are the average customer to employee ratio's people are typically going by with both managed and unmanaged providers. The employee amounts seem a bit low to me coming from the amount of staff I work with currently.
It's a self reported list, so if you're not interested in the general public knowing your employee counts and revenue then you won't show up on the list. That would account for a number of companies not being present. If you look at the revenue per employee for these 4 companies, it seems to be $200 - $500k, which seems about right to me considering the cost of hardware, employees, etc. Much less than 200k in revenue per employee and you'd better be dealing with some pretty low paid employees to make that work in a capital intensive industry like vps and dedicated servers. Do keep in mind they only count "employees" and not contractors. It's not clear what effect any kind of outsourcing might have. Running your own datacenter might improve your margins, but it would also increase your employee-per-revenue value, because you would have staff instead of purchasing a service.

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From this information, we can congratulation to them. But we can't say they are biggest company around here. There are few companies that grew too fast but they keep statistics to themselves due to other company could compare to them.

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Originally Posted by LM-AndrewS View Post
From this information, we can congratulation to them. But we can't say they are biggest company around here. There are few companies that grew too fast but they keep statistics to themselves due to other company could compare to them.
Totally agree. It's just nice to get some hard numbers on private companies since most hosting companies are private. Rackspace and Akamai are public so it's interesting to look at their numbers. For example, rackspace has a 4.5B market cap, 891M annual revenue, and 56M net income. For 100x annual net income, I'd sell my company any day

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  #9  
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Pretty impressive numbers there. No doubt its a solid teamwork and with right business plan.

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  #10  
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I have that issue. When I read it I only saw SingleHop... maybe I need to go back and read it again.

Congrats to those mentioned!

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  #11  
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If you expand if to the Inc 5000 instead of 500, you'll see a bunch more hosting companies, including Steadfast and Carpathia.

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Originally Posted by ameeriklane View Post
If you expand if to the Inc 5000 instead of 500, you'll see a bunch more hosting companies, including Steadfast and Carpathia.
Yes, but, to be on the inc5000 is more of a revenue requirement (must meet the minimum of $100k in year 1 and $2 million in year 3), as it only takes a 2% growth over 3 years to hit rank 5000, whereas being in the top 500 requires a pretty strong growth rate. Although I will gladly accept the additional information on revenue and employee count

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Very Impressive on the employees..thumbs up!

  #14  
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Since you mentioned the 5000, here are the additional hosting companies I could find there:

http://www.inc.com/inc5000/list/2011...y/it-services/

Carpathia Hosting
Rank#964
Quote:
Statistics
3-year growth:316%
2010 Revenue:$52.9 million
2007 Revenue:$12.7 million
Employees:109
Employee growth:77
Founded:2003
Liquid Web
Rank#1703
Quote:
Statistics
3-year growth:157%
2010 Revenue:$31.1 million
2007 Revenue:$12.1 million
Employees:255
Employee growth:135
Founded:1997
Steadfast Networks
Rank#2159
Quote:
Statistics
3-year growth:116%
2010 Revenue:$7.4 million
2007 Revenue:$3.4 million
Employees:30
Employee growth:19
Founded:2000
The Go Daddy Group
Rank#2215
Quote:
Statistics
3-year growth:112%
2010 Revenue:$741.2 million
2007 Revenue:$349.6 million
Employees:2900
Employee growth:1525
Founded:1997
Hosting.com
Rank#2601
Quote:
Statistics
3-year growth:89%
2010 Revenue:$61.9 million
2007 Revenue:$32.7 million
Employees:314
Employee growth:78
Founded:1997
EdgeWebHosting.net
Rank#2902
Quote:
Statistics
3-year growth:73%
2010 Revenue:$5.4 million
2007 Revenue:$3.1 million
Employees:30
Employee growth:20
Founded:1991
Fibernet Corp.
Rank#3736
Quote:
tatistics
3-year growth:41%
2010 Revenue:$3.7 million
2007 Revenue:$2.6 million
Employees:33
Employee growth:9
Founded:1994
ServerCentral
Rank#4701
Quote:
Statistics
3-year growth:12%
2010 Revenue:$17.1 million
2007 Revenue:$15.3 million
Employees:48
Employee growth:21
Founded:2000
Looking at all of these numbers, it seems like the typical revenue per employee is around $200k, with some fully managed providers being as low as around $100k revenue per employee, and some companies managing close to half a million in revenue per employee. The effect of outsourcing (or not) is not clear here, as contract workers are not counted towards employee count.

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Last edited by funkywizard; 09-13-2011 at 08:29 AM.
  #15  
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Very cool stats. I wouldn't say that I'm surprised, but I would never have thought.

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