Vercel hits $600M ARR with agents half of new business
Coding agents went from under 3% of Vercel's new business at the start of the year to roughly half, according to The Information.
The Information reports that Vercel is generating $600 million in annualized revenue, up 148% from a year earlier, and that coding agents have become a major source of new business. Agents now account for about half of new business, up from less than 3% at the start of the year.
Agents now account for about half of new business, up from less than 3% at the start of the year.
That is a shift in who is doing the buying, compressed into roughly nine months. Vercel has not posted its own numbers on this, so the figures here are The Information's reporting rather than a company disclosure.
Lemkin says the default slot is the whole game
Jason Lemkin picked the report up and extended it past Vercel. He wrote that Vercel and Supabase have both become the default choices for agents, and that there are plenty of other solutions out there. His read on what that is worth is blunt. He says the power of being the number one choice for agents is really, really something, and tells founders to make sure they hold that slot in their own category.
Lemkin is giving an opinion, not a number. The number belongs to The Information, and it is about one company.
The business read
If half of new business at a company this size is arriving through agents, the thing deciding your deployment target, your database and your auth provider is increasingly a model picking a default, not a developer comparing pricing pages. That makes being the thing a model reaches for a distribution channel with revenue attached, rather than a nice line for a landing page.
It also raises a question nobody in these sources answers. Nobody has said how a tool gets into that default slot, or how durable the slot is once it is there. Training data, documentation quality, template defaults and sheer incumbency all plausibly feed it, and none of that is in the reporting.
What is in the reporting is the direction and the speed. Under 3% to about half, in one year, at one company.
The power of being the #1 choice for agents is really, really something