Reuters this week announced that Lyft’s IPO is now oversubscribed due to higher than anticipated investor interest. Based on commitments made by investors so far, it is likely that Lyft will exceed its current $23 billion valuation, indicating that investors are less concerned with uncertainty in Lyft’s profitability and more interested in ensuring they don’t miss out on this high-profile SaaS IPO.
In related IPO news SaaS Mag this week released the 2018 market review of SaaS IPOs – providing analysis on the commonalities between the major SaaS companies which went public last year and how they fared. The Year SaaS Went Public provides an in-depth analysis of the IPOs of Dropbox, Spotify, DocuSign and others to identify how each company turned an inefficiency into major publicly-traded SaaS enterprises. Make sure to subscribe to SaaS Mag by March 24th to receive the Spring edition, featuring interviews with ConvertKit, Salesforce, Microsoft and more!
In e-commerce news, in-app shopping solution Checkout with Instagram with Instagram launched a closed beta in the US this week, allowing browsers to make purchases directly from product images. The feature, currently being tested by major brands like Adidas and Warby Parker. Instagram will store users’ payment information directly within in the app, allowing for a full e-commerce solution.
Featured in SaaS business listings this week we have a $1.1M B2B & Enterprise Social Media Analytics Software, with robust API allowing the business to perform 10 billion monthly API calls, steady year-over-year growth with MRR rising c.60.2% from 2017 to 2018, strong SaaS metrics with high LTV of c.$3,845 and net negative MRR churn rate of c.-1.2% over the past 12 months, impressive client base consisting of reputable brands and tens of thousands of free users and lean cost structure with low operational requirements. If you are interested in this business, please follow the link to request a prospectus.
In events news, Founder Thomas Smale had a great time attending Prosper for Amazon Sellers last week. Thanks to everyone who joined him for a meeting! Next week, Thomas and the team are off to MicroConf, where FE will be sponsoring the Growth-Starter Mashup networking drinks event. Make sure to stop by on the evening of March 26 from 7:30pm-11:30pm if you are attending the conference! If you will be in Las Vegas this coming week and would like to set up a meeting with Thomas, reply directly to this email.
Finally, LTV Conf has added several new speakers to the lineup, including Greg Smith, Chief Investment Officer at Business Development Bank Canada, YCombinator alum Einar Vollset and Chargebee’s own Germain Brion who scaled the company’s Sales Success team. There are only a few early bird tickets left so don’t wait to purchase. Discounts are offered to bigger groups, so make sure to bring your team, and use code FEINTERNATIONAL10 at checkout for an extra 10% off. Up to 300 invited SaaS Founders, Executives and Investors from private and public companies will be in attendance making this the perfect place to learn and make new connections.
Continue reading below for more on Lyft’s IPO and Instagram Checkout.
Listings
Featured
SaaS – B2B & Enterprise Social Media Analytics Software – $25K MRR
- Robust API allowing the business to perform 10 billion monthly API calls
- Steady year-over-year growth with MRR rising c.60.2% from 2017 to 2018
- Strong SaaS metrics with high LTV of c.$3,845 and net negative MRR churn rate of c.-1.2% over the past 12 months
- Impressive client base consisting of reputable brands and tens of thousands of free users
- Lean and scalable cost structure with low operational requirements
Yearly net profit: $338,000
Asking price: $1,054,000
Software – Online Advertising & Monetization Software – $25K gross/mo
- Years of operational history with a well-received product in the lucrative online monetization software space
- Continuous YoY growth with revenues reaching c.95% CAGR for the period 2013 to 2018
- Innovative development model allowing the business to reduce R&D and feature development costs
- Lean and scalable cost structure contributing to high net margin of c.86% in the LTM
- Simple operations with a fully-trained development team staying on post-sale
Yearly net profit: $284,000
Asking price: $717,000
New
Affiliate – Musical Instrument Education – $48K gross/mo
- Excellent track record of operational history allowing for an authoritative brand in the highly profitable music education niche
- Diversified income base driving impressive revenue growth of c.68% CAGR over the past four years
- Strong SEO foundation with 1,000 long-form posts driving keyword rankings for c.155,000 keywords
- Steady traffic growth with visitors growing at a c.81% CAGR for the period 2015 to 2018 and c.4.5 million visitors in the L12M
- Lean cost structure driving high net margins
Yearly net profit: $542,000
Asking price: $1,520,000
Affiliate – Financial & Lifestyle Management – $2.6K gross/mo
- Highly diversified revenue stream with income from display advertising, digital product sales, and affiliate partnerships
- Reputable brand with five years of operating history
- Strong SEO presence with third party authority links from WikiHow and BuzzFeed and keyword rankings for c.11,000 keywords
- Robust traffic profile with over 825,000 unique visitors in the L12M
- Vast social media following along with multiple proprietary digital products
Yearly net profit: $25,000
Asking price: $69,000
Sold
Display Advertising – 13 Y/O Technology Blog – $11K gross/mo
Display Advertising – Current Events & Entertainment – $10K gross/mo
Affiliate – Hunting Apparel & Supplies – $1.5K gross/mo
SaaS – B2B WordPress Food Blogging Software – $1.4K MRR
In The News…
Lyft Sets Share Price Range for IPO
Lyft Inc’s IPO has been reported to be oversubscribed based on investor interest already gained.
The higher-than anticipated investor interest has now made it likely that Lyft will indeed earn the $23 billion valuation it is after, according to people familiar with the matter. As the first of the anticipated 2019 ride-sharing IPOs, Lyft has captured the early-move advantage, as it appears investors are more interested in being part of this major IPO than they are worried about Lyft’s somewhat uncertain path to profitability. Lyft began setting the terms of the prospectus on Monday of this week, stating that it will report revenue net of the drivers’ contributions. The indicative price per share has been set to a range of $62 to $68 for the March 28 IPO.
Lyft’s progress could be indicative of a positive future for Uber’s anticipated IPO, valued at $120 billion.
Instagram Launches In-App Checkout
Instagram is launching an in-app checkout option for browsers to purchase directly from product images.
Dubbed “Checkout with Instagram”, the feature launched in the US this week in a closed beta including more than 20 leading brands like Adidas, Kylie Cosmetics and Warby Parker. The feature enables sellers to convert browsers directly within the app without having to send them outside the platform to become paying customers. Instagram commented (via spokesperson), “We will introduce a selling fee to help fund programs and products that help make checkout possible, as well as offset transaction-related expenses.”
The fee for sellers has not yet been disclosed, but Instagram has stated it will not cause the price of products to increase.
For more updates throughout the week on the financial world of online business M&A, follow our team on Facebook, LinkedIn, Twitter, and Instagram.