Google has released the June Broad Core Update, one of its biggest algorithm adjustments this year. Webmasters and SEO specialists have already flagged dramatic changes in rankings and organic traffic, with some site owners seeing a recovery of up to 25% from previous Google updates, while others are experiencing significant declines. Results from the first week are not always permanent, however, this time Google pre-announced the algorithm update, indicating significant changes were at hand.
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The e-commerce world this week saw PayPal launch Commerce Platform, an e-commerce system with a particular focus on behind-the-scenes security and fraud protection. With major players like Instagram and Facebook Marketplaces already using the platform, PayPal has opened up the system’s sophisticated security functionalities (like account authentication, compliance and fraud protection) to help smaller merchants compete with the giants. PayPal serves more than 22 million merchants, with its top 20 marketplaces reaching $90 billion in sales volume alone (a year-on-year growth of 40%).
In entrepreneurial news, SaaS Mag has released an interview with Salesforce’s Tiffani Bova from the Spring Issue on the SaaS Mag blog! Read the full exclusive to learn tips for finding the best SaaS sales channels, key insights on the software product-lifecycle and methods to attack churn from an offensive rather than defensive strategy, all from Salesforce’s Growth & Innovation Evangelist.
In new SaaS listings, FE is pleased to share details on an innovative Marketing Automation Platform in the social media niche, listed at the $505K price point. This platform, which serves B2B clients, boasts strong business fundamentals with a high MRR and a strong average LTV of c.$870, has a certified partnership with Snapchat (extremely difficult for competitors to obtain) and growing niche and a lean cost structure with net margins of over 80%. If you are interested in this business, please follow the link to request a prospectus.
Finally, thank you to everyone who came out to join us as we sponsored SaaStock East Coast this week! Founder Thomas Smale had a great time at SaaSociety in a mastermind with fellow founders and experts in the industry, and we enjoyed seeing clients and industry friends at our drinks event. Make sure to check us out at SaaStock West Coast in San Francisco on September 10-11, and reach out if you will be attending and wish to connect. Next up, Thomas will be judging the startup competition at Inflection Conference in New York on June 16! Tickets are still available if you are keen on learning how to build a profitable company, and make sure to set up a meeting if you will be in the area!
Continue reading below for more on Google’s June Broad Core Algorithm Update, PayPal’s launch of Commerce Platform and a bonus story on Google’s acquisition of Looker.
- Robust business fundamentals with a high MRR and a strong average LTV of c.$870
- Certified partnership with Snapchat, which is extremely difficult for competitors to mimic
- Innovative product that has put the business among the market-leaders in a lucrative and growing niche
- Lean cost structure with net margins of over 80%
Yearly net profit: $127,000
Asking price: $505,000
- Excellent track record of operational history helping establish an authoritative brand in the food niche
- Diversified revenue channels with an impressive revenue CAGR of c.62.6% over the past four years
- Robust c.111,000 keywords profile enabling the site to grow organically with over c.4.3 million sessions in the LTM
- Loyal c.85,000 social media followers and c.5,000 highly motivated double opt-in email list
- Lean cost structure driving high net margins in the LTM
Yearly net profit: $153,000
Asking price: $502,000
- Rapid revenue CMGR of c.26.3% over the last 12 months
- Robust c.45,600 keywords profile allowing the site to rank organically
- Impressive site traffic increase by c.297% in the last 6 months
- Lean and scalable cost structure driving high net margin of c.92.5% in the LTM
Yearly net profit: $47,000
Asking price: $175,000
In the News…
June Core Algorithm Update Goes Live
Google has this week released the largest core algorithm update so far this year.
As the first time Google has ever pre-announced a release, this is likely one of Google’s largest updates yet. Google’s Public Search Liaison Danny Sullivan stated that the reason they decided to announce it was because it will be “definitely noticeable” and they want the community to be prepared for what comes. This is not the first algorithm update this year, and many in the SEO community previously noted that the most recent previous update negatively impacted rankings. For some, the June update has brought recoveries from these negatively impacted rankings. Others, however, are noticing another decline, especially for primarily content and news sites.
Results over the first week have varied drastically depending on the nature of the site, but the update is expected to continue showing results for the next week.
PayPal Launches Commerce Platform
PayPal has released a new e-commerce platform to grant independent merchants comparable access to the same infrastructure as giants like Instagram and Google.
PayPal COO Bill Ready has stated of the release: “Sellers are trying to figure out how they can go compete with the very largest online retailers. This is a huge opportunity for them.” Several existing functions from PayPal’s platform — like facilitating merchants accepting money online and PayPal checkout on third party sites — will be combined with opening up back-end systems such as fraud protection, compliance, and authenticating an account. These functions are expensive for independent merchants to add on their own, which means using PayPal’s infrastructure will allow them to add the capabilities with low expense.
In an interview with CNBC, Ready stated, “This is a huge and rapidly growing market and we’re looking to go enable much more of that. Sellers are trying to figure out how they can go compete with the very largest online retailers. This is a huge opportunity for them.”
Google Acquires Looker
Google announced it will acquire Looker in a $2.6 billion acquisition.
Looker will be added to Google Cloud in order to serve as a resource for companies still migrating to the cloud. The strategy comes from Google’s Thomas Kurian, who was made head of Google Cloud in late 2018. “The combination of Google Cloud and Looker will enable customers to harness data in new ways to drive their digital transformation,” Kurian shared. Looker is an analytics company with a strong history, and was likely targeted to bolster Google’s position in the cloud market, as Google Cloud was recently ranked third in the cloud infrastructure market (AWS sits firmly in first place).
Looker was last valued at $1.6 billion with $103 million in funding.