Google has just published the most in-depth guidance on its core algorithm update to-date. In the guide, Google covers four areas of content marketing and SEO that impact rankings, and advises SEO experts on Quality Rater Guidelines. Advice from Google included auditing pages on which a site has experienced drops, creating content most likely to be bookmarked or cited, being vigilant about factual inaccuracies and providing more value than the other pages ranking alongside it through creative and unique content.
In software news this week, Apple released its quarterly earnings, posting revenues of $53.8 billion for its fiscal third quarter ending June 30, 2019. Record revenues from its Services sector, which grew 13% YoY to reach $11.46 billion, were driven by Apple Pay, which is now adding more users and reporting higher transaction volumes than PayPal. Apple Pay is completing almost 1 billion transactions per month, a growth rate of nearly 100% over last year’s transaction volume.
Elsewhere in the world of SaaS giants, Shopify announced that the Shopify App Store will be made available in 8 new languages in a bid to remain a frontrunner in the globally expanding e-commerce market. Research confirms 58% of e-commerce sales are completed in non-English speaking countries, a figure which is expected to rise to beyond 65% within the next 5 years.
In global monetary policy updates, the Federal Reserve this week announced that it would lower rates for the first time in over a decade. Reducing the federal funds rate by 25 basis points is one of the most significant quantitative easing plays since the 2008 global recession, and is expected to lower interest rates and generate higher loan values from banks over the coming months. As banks are widely expected to pass on savings from Prime Lending Rates to SBA loan borrowers there has never been a better time to explore SBA loans to acquire a business. Head over to the FE International blog for a recent webinar of ours covering How to Use an SBA Loan to Buy an Online Business.
New in listings from FE this week, we are pleased to present a unique Portfolio of Market-Leading Applications valued at c.$3.6 million. The business has climbed in user popularity by providing six effective mobile applications for over 18,000 professional psychics to connect with high value consumers. With the psychic services industry generating c.$2 billion in annual revenues in 2018, the business stands at the forefront of this lucrative market, poised to continue capturing market share. The business boasts a clear market fit with over 1.47 million lifetime installs and over $5 million in annual revenues and steady revenue growth with earnings reaching a c.74% CAGR over 2014 to 2018. Please follow the link above to request a prospectus.
In events news, Founder Thomas Smale enjoyed speaking at ASD Market Week covering 5 Lessons from over $500 Million in Business Acquisitions! Next up, FE is looking forward to co-hosting an IndieHackers SaaS Founders Meetup in NYC on August 15th. RSVP through the link to join us for an insightful evening with other successful SaaS founders! Later in the month on August 29th Thomas will be attending SaaStr Scale in San Francisco. Feel free to reply to this email and set up a meeting if you will be attending and wish to connect!
Continue reading below for more on Google’s algorithm update guidance, Apple’s most recent earnings report, Shopify App Store’s new languages, the Federal Reserve’s lowered rates and a bonus story on Huawei’s continued growth.
Listings
New
App – Astrology & Psychic Services PaaS – $417K gross/mo
- Diversified portfolio of iOS and Android Apps in the lucrative psychic services niche
- Clear market fit with over 1.47 million lifetime installs and over $5 million in annual revenues
- Steady revenue growth with earnings reaching a c.74% CAGR over 2014 to 2018
- Stellar product reviews with App ratings of over 4 stars across six different Apps
- Well-trained team consisting of 13 members capable of running the day-to-day
Yearly net profit: $1,067,000
Asking price: $3,573,000
SaaS – Project Management & Time Tracking Software – $22K MRR
- Clear value proposition aimed at a large and growing target market
- Robust features and functionality allowing for a perfect rating on third-party review sites
- Steady revenue growth with MRR expanding at a c.104.7% CAGR over the period 2016 to (e)2019
- Hundreds of paying customers including numerous notable brands
- Highly automated operational model allowing for a lean cost structure and minimal owner involvement
Yearly net profit: $238,000*
Asking price: $1,000,000
*Revenue and profit figures are annualized on a last six-month basis.
E-Commerce – Men’s Style & Grooming Products – $21K gross/mo
- Wide selection of stylish and affordable products in the lucrative men’s apparel niche
- Steady revenues with over $250,000 in gross income throughout the LTM
- Hundreds of profitable SKUs with a high ARPO
- Highly automated operations allowing for minimal owner involvement
Yearly net profit: $46,000
Asking price: $3,573,000
E-Commerce – 8,000 Tier Amazon Merch – $1.9K gross/mo
- Creative products with numerous five-star product reviews
- Firm foothold in a lucrative platform with over 310 million Amazon users
- Over 410 live designs with plenty of untapped design space for growth
- Scalable Amazon Merch business on the 8,000 Tier
Yearly net profit: $23,000
Asking price: $71,000
Sold
Display Advertising – Education Templates – $460 gross/mo
In the News…
Apple Releases Earnings Report
Apple recently released its third-quarter earnings and experienced promising growth as revenue increased to $53.91 billion, an increase of 1% from the same quarter last year. Apple predicts reports of continual growth for the fourth quarter of the fiscal year.
Apple Pay’s monthly transaction volume is outgrowing PayPal at four times the speed. Apple Pay is rapidly becoming a top choice for digital payment methods as nearly one billion transactions are completed each month. Apple expects Apple Pay to continue to grow as global cities will be integrating the platform to transit systems.
Despite the iPhone sector of the tech giant seeing a 12% decline in sales, sales grew in every other product area including Mac and iPad. 75% of Apple watches purchased in the quarter were acquired by first time buyers, indicating a major increase in interest in this category. The increased interest explains why wearables such as Apple Watch, Air Pods, and Beats Headphones, lead the reported increase in sales.
Huawei Reports Earnings Increase Despite US Restrictions
Huawei recently released an earnings report showing continual increase despite Washington’s efforts to limit the global reach of the telecommunications firm. On May 16, Washington blacklisted the company, forbidding American companies from selling software of components to Huawei without a proper license.
Despite these limitations, Huawei saw $58.33 in revenue and a 23.2% yearly revenue growth for the first half of 2019. The report announced a net profit margin of 8.7% and a total of 118 million smartphones sold in the past six months.
The telecommunications giant dominates the market in China, capturing 38% of the market. Huawei has been dubbed the world’s second-largest smartphone maker by sheer distribution volume. Despite high ranks in the company’s home base, Huawei Chairman Liang Hua reported the company has lost ground in markets outside of China.
Snapchat Announces Global Campaign and New Advertising Tools
Snapchat is launching its first global, paid media campaign, which will be shown on billboards and cinema ads, as well as on print, digital and broadcast platforms in dozens of countries. The campaign is centered around stories of “real friends” connecting over the platform. The campaign comes on the heels of strong financial earnings with share prices passing over IPO debut price for the first time and revenue growth to $388 million for a 48% increase year-over-year.
The social media giant is also launching a new advertising tool called Instant Create aimed at smaller advertisers who may not have resources to be able to understand and reformat their ads for different platforms. Instant Create will allow advertisers to create ads in the smartphone-friendly vertical format in a simple 3 step process. Snapchat announced advertisers won’t need to do serious design work, as the tool streamlines the creation process and uses templates.
Snapchat believes the new tool and campaign will continue to increase its revenue in the upcoming earning quarters.
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