Google algorithm update focuses on UX, Amazon’s B2B sales hit $25B, SaaS companies’ value up 1000%, Google cuts app store fees, and more
Google expected to update algorithm to focus on UX this May
A Google algorithm update with ranking signals related to user experience is already rolling out and projected to be complete by May.
The update supplements last year’s establishment of Core Web Vitals, which measure page speed and responsiveness in the first 10 to 15 seconds of a visitor landing on a page.
To prepare, page owners should consider metrics related to site speed, mobile-friendliness, malware or spyware that may be inadvertently running on the site, data encryption capabilities, and how intrusive pop-ups are for website visitors.
SaaS and Cloud companies’ value up 1000% since 2013
Public SaaS and Cloud companies are up 1,000% since 2013, and Google is predicting another 300% growth over the next five years.
Additionally, Bessemer Venture Partners reports an average revenue growth rate of 40.6% for emerging public companies primarily involved in providing cloud software to their customers, with a total market cap at $1.9T.
Privately-owned SaaS businesses have also seen an increase. Between 2019 and 2020 alone, the average value of FE-listed SaaS businesses increased 15%.
Google cuts app store fees for developers on first million in annual sales
Starting July 1, Google will cut Google Play app store fees to 15% on the first million dollars a developer makes.
The decrease in fees applies to all developers, regardless of total sales. After developers cross the $1M mark, Google will charge its standard 30% fee for in-app purchases and downloads.
The move mirrors one Apple made in December, although Apple’s decrease only applies to developers who make less than $1M a year from their App Store. Once a developer makes more than $1M, they are charged the standard rate on all sales.
Amazon Business surpasses $25B in annualized sales
E-commerce B2B juggernaut Amazon Business has surpassed $25B in worldwide annualized gross merchandise sales, approximately half of which are from third-party sellers.
The B2B portion of Amazon is on track to rival its B2C component in terms of sales, providing significant opportunities for third-party B2C retailers.
While it took seven years for Amazon’s consumer sales to increase from $1B to $10B annually, Amazon Business reached the $10B mark within its first year. Further, it took another three years for Amazon’s retail sales to reach $25B. By comparison, Amazon Business reached that volume in just five years.
According to Amazon, 45 states, 90 of the largest 100 U.S. cities and counties, and more than 80 Fortune 100 companies use Amazon B2B for purchases.
For sale is a rapidly growing lead generation business in the Timeshares niche generating over $1M in gross revenues over the LTM. Launched in 2019, the business has focused on using its resources to provide high-quality leads to the top timeshare exit companies in the space.
With a strong ads campaign and partnerships with leading brands in the space, the site has attracted over 250K visitors in the LTM. The business has experienced explosive growth, with revenues increasing at a CMGR of c.11% over the LTM, and it is now generating c.1.2K qualified leads per month on average, generating c.$83 revenue per lead.
The business presents a unique opportunity for a new owner to take over a growing and highly-scalable lead generation business with strong business metrics and many unexplored growth opportunities.
Some key highlights:
- Firm foothold in the Timeshares/Real Estate niche
- Strong traffic profile, attracting over 250K visitors in the LTM
- Generates an average of c.1.2K qualified leads per month at $83 revenue per lead
- Highly impressive revenue growth, with revenue growing at a CMGR of c.11% in the LTM
Request a prospectus to learn more.
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OTHER FEATURED LISTINGS
SaaS – Portfolio of Sales & Conversion Optimization Shopify Apps – $100K MRR
- Portfolio of three Apps that are firmly positioned in the Shopify Sales and Conversion Optimization niche with c.48.5K installations over the LTM
- Clear product-market fit helping drive a revenue CAGR of c.58.8% between 2018 to 2020
- Attractive SaaS metrics with an MRR of c.$100k and stable LTV of c.$85 over the LTM
- Lean and scalable cost structure with minimum owner involvement driving high adjusted net margins of c.91%
Yearly net profit: $1,201,000
Asking price: $3,490,000
SaaS – Email Lookup, Verification, and Enhancement Software Portfolio – $32K MRR
- Market-leading position in the email address lookup, verification, and enhancement software niche
- Strong traffic statistics with over c.2M visitors and c.10.6M page views combined in the LTM
- Impressive customer following with a combined LTV of c.$716 and MRR of c.$32.2K as of January 2021.
- Revenues growing at CAGR of c.18% between 2017 and 2020
Yearly net profit: $348,000
Asking price: $1,500,000
RECENTLY SOLD
Display & Direct Advertising/Digital Products – Kids’ Arts and Crafts – $11.3K Gross/Mo
That’s all for this week. See you next week!
The FE International Team
