AI customer service agency Sierra, founded by former Salesforce co-CEO Bret Taylor and former Google executive Clay Bavor, announced that its annual recurring revenue (ARR) has reached $100 million, just 21 months after its public debut in February 2024, with a current valuation of $10 billion, corresponding to a 100 times price-to-sales ratio.

On the client side, Sierra has signed over 30 clients including Deliveroo, Discord, Rivian, SoFi, ADT, Cigna, and Vans, covering finance, healthcare, retail, and IoT sectors. It can handle complex processes that previously required human agents, such as identity verification, returns, card replacement, and mortgage applications. The company uses a "results-based pricing" model—charging based on the actual number of tickets resolved, rather than traditional SaaS subscriptions. Taylor claims this approach gives customers an ROI of over 300%, driving a more than 150% annual expansion for existing clients.

In terms of competition, Sierra competes with companies like Decagon, Intercom, and Zendesk AI, but claims to be the leader in the "AI customer service" vertical in terms of both the number of clients and revenue scale. The next version will add real-time voice agent support and RPA process mining, aiming to break $500 million in ARR by 2026.