According to quarterly financial earnings released this week, Microsoft’s cloud business continues to be a major profit generator as the tech giant posted record sales with gross margins for Azure and Office 365 apps growing to 67% in fiscal quarter two, a percentage that is expected to continue rising this year. The reports revealed revenue from the company’s cloud business reached $12.5B, up 39%. Microsoft’s Chief Executive Officer Satya Nadella stated climbing gross margins are a result of the company’s diverse range of cloud products, spanning from productivity apps to cloud infrastructure, allowing its commercial cloud business to meet a broad number of customer needs.
This week, eCommerce marketing platform Yotpo announced their acquisition of SMS marketing automation platform, SMSBump for an undisclosed eight figure sum. The acquisition will allow Yotpo to become the most integrated platform offering market-leading direct to consumer marketing solutions for eCommerce brands to manage reviews, visual UGC, loyalty, referrals, and SMS in one location.
After three years of ongoing debate, President Trump signed a new trade agreement with Mexico and Canada: the United States-Mexico-Canada Agreement (AMCA). The document, which will govern over $1 trillion in trade, is set to replace NAFTA after its 25 year run. The new agreement will bring significant changes to intellectual property provisions, labor and other industries. The new agreement includes measures for copyright extensions and and patent protections, according to Newsweek.
In FE exclusive listings, we have an $3.5M Affiliate business in the Power Tools and Home Improvement niche. This business boasts a vast content library with hundreds of articles providing detailed product reviews and how-to guides covering a variety of tools and home improvement topics. With content ranking for c.300,000 keywords generating consistent traffic, this listing has seen over 3.2 million visitors and 3.7 million pageviews over the LTM, a level of scale not seen by its competitors. This has driven impressive revenue growth of c.868.7% from 2018 to 2019(e), and is expected to continue growing rapidly. If you are interested in this business, please follow the link above to request a prospectus.
In events news, this week, FE International Founder Thomas Smale had the chance to attend Affiliate Summit West to connect with founders and entrepreneurs from all over the world in Las Vegas. Coming up this weekend, Thomas will be in Brisbane, Australia to speak at the eBusiness Institute’s Live Digital Training Event, so please reach out if you will be attending and would like to set up a meeting.
Looking to attend a SaaS conference this year? North America’s leading SaaS Conference is rapidly appraching! LTV Conf 2020 will be held from May 18th to the 20th in San Francisco this year so grab your tickets! Early bird ticket sales end on February 14th and as our gift to you, use discount code FENEWSLETTER for 10% off your purchase!
Call for Entry: SaaS Mag has opened its application for the 2020 SaaS 1000 list! If you think you’re company deserves to be ranked among the top growing SaaS companies, then be sure to apply by February 29, 2020!
Lastly, don’t forget to request your copy of the SaaS founder’s Blueprint to get your free copy of our guide to profitable exit planning.
Continue reading below for more on Microsoft, Yotpo, the AMCA and more!
Listings
New
Affiliate – Power Tools & Home Improvement Resource – $85K gross/mo
- Reputable and authoritative content business with keyword rankings for c.300,000 keywords
- Impressive revenue growth of c.868.7% from 2018 to 2019(e)
- Rapidly growing traffic profile with over 3.2M visitors and 3.7M pageviews in the LTM
- Vast content library with hundreds of detailed articles covering a diverse product range
- Lean cost structure driving high net margins
Yearly net profit: $996,000
Asking price: $3,488,000
Digital Products – B2B for Merch by Amazon – $15.1K gross/mo
- Market leader in the rapidly growing Merch by Amazon space with no direct competitors
- 5-star reviews on Facebook
- Over three-quarters of the revenues are recurring subscriptions
- Low-touch and low-cost operations
Yearly net profit: $144,000
Asking price: $482,000
Affiliate/Advertising – Fish & Aquariums Product Reviews – $5.9K gross/mo
- Well established brand in an evergreen niche
- Strong SEO foundation with keywords ranking for c.47,700 keywords
- Attracted c.1.8 million visitors over the LTM, with number of visitors rising c.470% from 2018 to (e)2019
- Steady revenue growth, rising at a c.10.8% CMGR over the LTM
- A lean cost structure enabling minimal owner involvement and high net margins
Yearly net profit: $69,000
Asking price: $235,000
Subscription/Memberships – 10 Y/O Digital Music/DJ Courses – $6.2K gross/mo
- Digital product business firmly positioned in the online DJ courses niche
- Strong revenue growth of c.36% over 2014 to 2019 period
- Steady ARPU of c.$41 in the LTM
- Vast social media following with more than 110,000 followers
Yearly net profit: $63,000
Asking price: $226,000
In the News…
Microsoft Reports Record Sales as Result of Growing Cloud Business
Even as Microsoft continues to invest heavily in developing new offerings and expanding its customer base, financial reports released this week show the company is hitting record sales numbers thanks to its thriving cloud business. Microsoft’s commercial cloud business is comprised of Azure computing services gross margins for the two entities saw a a 39% increase in growth.
US Signs New Trade Deal with Mexico and Canada
This week, President Trump signed a new trade agreement with Mexico and Canada that will replace NAFTA. The deal gained bipartisan support as the agreement will significantly benefit environmental protection efforts, energy, unions, farmers, and manufacturers with new provisions and protections. The new agreement will determine how more that $1 trillion in trade will be spent.
Yotpo Acquires eCommerce Marketing Solution SMSBump
Announced this week, Yotpo is set to acquire SMSBump. Yotpo is an eCommerce marketing platform which allows eCommerce merchants to create user generated content and develop loyalty programs. The company will acquire SMSBump to extent its product offerings to offer users SMS capabilities.