Ramp founder Eric Glyman on the many ways AI is changing corporate spending

**Eric Glyman** (0:00)
I don't know if we need it, if we want to do this, but.

**Alex Rampell** (0:02)
I already look like that naturally.

**Eric Glyman** (0:03)
So I don't think.

**John** (0:05)
Oh, this is Kevin from The Office.

**Eric Glyman** (0:07)
Yeah.

**John** (0:09)
Eric Glyman is the co-founder and CEO of RAMP, the corporate guard and finance automation platform. Founded in 2019, RAMP has taken the industry by storm.

**Alex Rampell** (0:17)
Oh, cheers. Oh, sure.

**John** (0:21)
Can you describe maybe a good framing, just the RAMP business today? What's the biggest part of the business in terms of where you make money? What are the new growth lines? Any metrics you can share on the scale? But I think Alex and I have a million questions, but maybe you can start by just framing it up for us.

**Eric Glyman** (0:34)
Yeah, of course. So first, just the pace that this has come together has been pretty remarkable.

**John** (0:42)
Seven years, yeah.

**Eric Glyman** (0:44)
I think by the time we were six years in change, the company had passed over a billion a year in revenue. The largest portion of that is card. And so, that might be a classic kind of interchange based model. But behind it-

**John** (0:59)
This is people in their business, they have spend cards. Everyone walking around the company has a ramp card, and you earn a change on those.

**Eric Glyman** (1:05)
That's right. Next, you can think about bill payments and software. Software, it's a two something year old business line, just about two years and some months. That's over 100 million a year business line in and of itself, and that can be advanced functionality to maybe manage lots of entities to automate aspects of accounting, maybe aspects of procurement. Bill payments, so this can be sending checks, wires, ACH, and that's predominantly a float as well in some cases foreign exchange transaction business. Treasury, that's a product that is about a year old, several billion dollars of deposits. Some of that is checking like products, some of that is more of an investment and money ladder type product. And then the last, the other ones are procurement and then travel, which is a bit of an in kind. And what's been so interesting is that if you break down and look towards maybe, let's say, contribution profit, gross profit of the business, a few years ago, it would have been 90 plus percent card. I think by the end of this year, the second, third, fourth, fifth lines of business will comprise in aggregate the majority of Ramp's business. And so it's evolved into this platform by which, if you're trying to operate your company, it's just a lot more efficient. You spend less, I think people, no ramp for, we help the average company cut their expenses by about 5 percent per year. The thing that's been really fascinating is people are starting to use these products in aggregate. Not only are they not paying for five, six sets of point solutions, but they're also not wasting time. They're growing faster. I think that the average customer last year on ramp grew their revenue by, I think it was 16 percent, which compared to in the United States, the average business. Yeah, I think it's 5 percent in the US. And so, I think in some sense, what we're trying to do is be not just a better platform, but a better, almost kind of digital brain for organizations to allocate resources and make sure spend is not wasted. Yeah.

**John** (3:16)
So, you start by selling, say, spend cards into a business. The CFO likes it, the employees like it, and then that gives you permission to go sell some of this other functionality. And so, it's kind of a classic multi-product to cross-sell. Is it all the starting with spend cards or do you now have kind of multiple front doors into the business?

**Eric Glyman** (3:37)
It's been the big story of the past year. You know, I think there was, you know, the last quarter thousands of businesses that came in just for bill payments. There's accounting firms that, you know, are becoming into, they say like, you know, we're a ramp shop here if you want to work with us, you know, we'll bring in bill payments, treasury, just, you know, you know, we use ramp to go power that, and they can manage, you know, 10, 100, 200 clients all through one platform. And we're excited, I mean, that probably the fastest growing line of business is procurement, where there's single clients that are looking to kind of bring in and do full scale, you know, purchase orders across, you know, whether it's single or, you know, dozen plus entities all the way through. And so, that's been, I think, the really fun story of the past year.