SaaS Product-Market Fit Lost at $9M ARR Then Rebuilt - The SaaS Podcast - AI, Growth & Product-Market Fit for SaaS Founders Recap

Podcast: The SaaS Podcast - AI, Growth & Product-Market Fit for SaaS Founders

Published: 2026-02-12

Duration: 1 hr 2 min

Summary

In this episode, Gilles Bertheau shares the tumultuous journey of Livestorm, a webinar platform that faced significant challenges after rapid growth during COVID-19. The company lost its product-market fit but successfully pivoted to profitability by targeting larger enterprise clients.

What Happened

Gilles Bertheau, co-founder and CEO of Livestorm, recounts the initial creation of the platform as a university project in 2016, which quickly evolved into a full-time venture after a successful presentation. Despite early excitement and growth, Livestorm faced significant challenges during the pandemic, ballooning their annual recurring revenue (ARR) from $2 million to $9 million. However, this growth came at a cost, with support tickets skyrocketing and infrastructure crumbling under the pressure. Gilles highlights the chaos they experienced, including server crashes and the need to invest heavily in AWS to maintain service delivery.

As the initial surge in demand subsided, Livestorm realized that their attempts to diversify into meetings and sales demos made them resemble competitors like Zoom, without any compelling differentiation. This identity crisis led to a failed Series C funding attempt in 2022, pushing Gilles to refocus the company on profitability. He had to reinvent the sales strategy, shifting from self-service to enterprise-focused sales, which involved almost entirely replacing the sales team. Despite self-doubt about Livestorm's future, the company has rebounded, now generating nearly $20 million in ARR with 3,500 customers and having raised $35 million to date.

Key Insights

Key Questions Answered

How did Livestorm's early success as a university project lead to full-time entrepreneurship?

Gilles explains that Livestorm was initially created as a university project, where he and his co-founders had just two months to develop a product and attract users. The presentation was a success, with hundreds watching their live-streamed webinar, garnering positive feedback from peers and even former bosses who encouraged them to pursue the idea full-time. With minimal responsibilities at such a young age, they decided to take the plunge into entrepreneurship.

What challenges did Livestorm face during its rapid growth after COVID-19?

During the pandemic, Livestorm's ARR skyrocketed from $2 million to $9 million, but this growth was chaotic. Gilles noted that support tickets surged from 200 to 20,000 monthly, leading to overwhelming operational stress. Infrastructure issues like server crashes became prevalent, forcing the company to invest heavily in AWS to maintain services, which ultimately led to a squeeze on their profit margins.

Why did Livestorm struggle with product-market fit after expanding into meetings and sales demos?

After COVID, Livestorm attempted to broaden its offerings by developing a meetings product and a sales demo tool. However, Gilles pointed out that these additions positioned Livestorm too similarly to established competitors like Zoom, leaving customers with no compelling reason to choose their platform. This misstep contributed to their identity crisis and highlighted the importance of clear differentiation in a crowded market.

What steps did Gilles Bertheau take to pivot Livestorm towards profitability?

Faced with a failed Series C funding round, Gilles had to pivot Livestorm towards profitability by targeting larger enterprise clients who would provide higher revenue and longer retention. This shift required a complete overhaul of their sales strategy, as the existing sales team was only accustomed to handling inbound leads. Gilles emphasized the difficulty of this transition, including the near-total replacement of the sales team to adapt to the new business model.

How has Livestorm's revenue and customer base evolved since its inception?

Today, Livestorm is closing in on $20 million in ARR and serves around 3,500 customers. The company has successfully raised $35 million in funding, positioning itself as a strong player in the webinar market. Gilles' narrative showcases not only the growth of the company but also the resilience and adaptability required to navigate the turbulent waters of the SaaS industry.