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Amagi Media Labs is increasingly relying on AI, automation and product-led growth strategies to improve operating efficiencies, even as the company has reduced headcount across sales, marketing and customer service functions over the past few years.
The company’s management said growing revenue contributions from existing customers and rising automation capabilities are helping reduce the need for proportional expansion in account management and sales teams.
Speaking about customer growth trends, MD and CEO Baskar Subramanian highlighted the company’s strong net retention rate (NRR), which stood above 126%.
“If you look at our NRR, the net retention example at 126% and above, it's clearly showing you that existing customers are actually adding more and more revenue to us today,” he said.
According to Subramanian, this trend naturally improves sales productivity because sales teams can focus more on acquiring new clients rather than expanding servicing teams for existing accounts.
“Account management at some point is sublinear in scale. You're not going to add just because a customer of ours is spending $1 million today and then they're going to do $10 million more. It doesn't mean we need 10 more people to solve a particular problem,” he added.
The company also indicated that AI and automation are increasingly reshaping customer engagement models, with a larger share of customer interaction becoming product-led instead of being driven solely through sales personnel.
Amagi's management said improved tooling, product-led growth strategies and continued market expansion are helping the company deepen customer relationships while maintaining operational efficiency.
“I think sales efficiency is in line with what we're seeing, and we will continue to see the efficiencies and harvest the efficiencies going forward as well,” the management said.
Reflecting this shift, Amagi’s Sales, Marketing and Customer Success headcount declined from 368 employees in FY24 to 308 in FY25, before rising marginally to 323 in FY26.
At the same time, the company significantly expanded its research and development workforce. R&D headcount rose from 347 employees in FY24 to 470 in FY25 and further to 532 in FY26.
Subramanian noted that a substantial portion of R&D investments is being directed towards building the next generation of products and platform capabilities.
Amagi closed FY26 with 977 full-time employees, with hiring remaining focused primarily on innovation and new product development within R&D. Looking ahead, the company said it plans to continue prudent hiring while using AI as a productivity lever across operations. “Together, these inputs translate into continued operating leverage as we scale,” the management said.
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