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Hootsuite

via Nathan Latka Podcast
ARR$200.0M
Growthword of mouth
The Spark

Hootsuite's story didn't start with a single founder insight in this narrative, but rather a company that had built substantial scale as a social media management platform. Ryan Holmes originally built Hootsuite within an agency model—a structure that became a template for many successful SaaS companies. The company grew to become an industry leader, eventually attracting acquisition interest and the attention of major financial institutions like Goldman Sachs, which reportedly worked on a potential $7.5 billion exit. However, the company's growth trajectory had slowed, prompting leadership changes.

Building Momentum Under New Leadership

In January 2023, Arena Noboelski joined Hootsuite as CEO with a mandate to re-accelerate high growth. Noboelski brought a playbook focused on customer-first execution and operational discipline. What emerged from her first 18 months was not just a tactical turnaround, but a fundamental reimagining of how B2B SaaS should operate in the era of Gen Z buyers.

Noboelski's research was anthropological in nature. She met with nearly 519 Gen Z individuals to understand their behaviors, attitudes, and buying patterns. What she discovered was stark: in less than three months from her speech, 75% of all buyers would be either millennials or Gen Z. Yet the entire SaaS playbook—built by four generations before—was fundamentally misaligned with how this new generation wanted to buy software.

What Worked: Unlocking Gen Z Buying Patterns

The research revealed critical insights that contradicted conventional SaaS wisdom:

**The research phase dominance**: 60% of the B2B SaaS buying process happens before a Gen Z buyer ever speaks to a sales representative. Even more striking, despite their reputation for short attention spans, 50% of Gen Z buyers consume at least 13 pieces of content before calling a sales rep.

**Social over search**: 65% of B2B search starts on social media, not Google. Google search had declined almost 30% from Gen X to Gen Z.

**The authenticity requirement**: Gen Z buyers distrust traditional advertising and cold outreach. They seek peer reviews, community validation, and B2B influencer recommendations. They want to feel in control of their buying journey.

**Self-service expectations**: Two out of three Gen Z buyers want a fully digital purchase experience, even for deals with ACV ranging from $20K to $50K. Hootsuite began transforming its demo process, inspired by Monday.com's fully self-service approach where buyers could complete the entire demo without human interaction.

**Employee as ambassador**: 62% of Gen Z employees are already involved in buying decisions at their companies. Hootsuite recognized that its own employees were its best credibility channel.

**Social selling impact**: 78% of salespeople who leverage social media outsell their peers. 77% of buyers are more likely to purchase if they see executive presence on social platforms.

Execution: The Transformation

In less than 12 months, Hootsuite transformed its enterprise core from 8% growth to 22% growth. The company was already doing $95 million in annual revenue when Noboelski arrived, with roughly 95% coming inbound. Under her leadership, revenue has grown to over $200 million.

The key tactical shifts: moving from a push-based sales model (cold emails, scheduled demos, persistent follow-up) to a pull-based, self-service model; investing heavily in content that appears where Gen Z buyers search (Reddit, peer review sites, social platforms); leveraging executive presence and employee advocacy on social; and reimagining the customer journey to put buyers in control rather than forcing interaction points.

Where They Are Now

Hootsuite is operating at scale ($200M+ ARR) while pioneering what Noboelski calls the "B2Z era"—business to Gen Z. The company is no longer just a social media management tool; it's become a case study in generational shifts in SaaS. Noboelski emphasized that this is only day one of a multi-year trend, with the window to adapt closing for companies that continue using outdated playbooks. By putting Gen Z buyers in control of their journey, focusing on authenticity, and meeting them where they naturally consume information, Hootsuite has cracked a code that will likely define SaaS success for the next decade.

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