Shopify revenue doubles in Q2. The Canadian e-commerce giant has released its Q2 results, and 97% revenue growth has been reported year on year. Shopify has benefited from the rush of businesses looking to set up online during the global pandemic, and new stores on the platform grew 71% in the second quarter. This growth has seen Shopify surpass eBay in online spending but the company now has its sights set on Amazon’s market share. The company is currently investing $1B in warehouse space and robotics to build a fulfillment network that can compete with Jeff Bezos’ e-commerce giant.
App store commission dispute: Apple puts pressure on Airbnb. After several weeks of public disputes over commission fees for revenue generated from the App Store, Airbnb is now under fire for withholding commission on their virtual experience classes. Apple currently demands 30% of all fees, a rate that many think is extortionate. Apple has defended its stance by saying that giving Airbnb special treatment would be unfair to many other businesses who have complied with their terms of service for years. Apple’s Tim Cook took part in a Congressional hearing this week in relation to potential antitrust violations by the biggest US tech companies.
Leaders of US tech giants face a congressional hearing. On Wednesday, chief executives of Amazon, Facebook, Apple and Google appeared before congress via video link for an antitrust hearing. Concerns over the tech giants’ monopolistic behavior were raised, and the performance of each executive varied considerably. Amazon’s Jeff Bezos spoke clearly and concisely but admitted to not being able to answer all the questions raised, while Google’s Sundar Pichai has been accused of being evasive.
Whatever the results of the upcoming US general election, increased regulation of big tech companies seems likely.
Bing has launched its new URL inspection tool. As part of its new Bing Webmaster Tools launch on Thursday, Bing has released a new URL inspection tool. This tool allows one to inspect the Bing indexed version of you URLs, highlighting issues related to crawl errors and not following Bing Webmaster Guidelines. The tool is similar to Google’s URL inspection tool, and webmasters are advised to use both to ensure that their sites are indexed correctly in both search engines.
A new SaaS Mag article has been released. Ahead of the new issue’s publication, an article by David Greenberg, Vice President of Marketing at Act-On Software, has been posted on the SaaS Mag blog, titled Why Smart Marketing Equals Authenticity and Customer Experience.
New for sale this week is a market-leading B2B SaaS business in the online workflow and proofing software niche.
Launched in 2000, as one of the first SaaS tools in existence, the business offers an online proofing platform and cross-media publishing tool for businesses looking to automate and improve collaboration between designers and their clients. With customizable automated workflows, an iOS App, various integrations, ISO 27001 certification, numerous awards and partnerships, the business delivers a value proposition that is unmatched by competitors.
Businesses have traditionally relied on email for collaboration, which has proven highly ineffective. Businesses are now actively seeking alternatives and turning to online collaboration software. With the global online collaboration market expected to grow at a CAGR of 11.6% to $59.9 billion by 2023, the business’s long and successful operating history and early presence in the niche have put the business in a prime position to capitalize on these trends.
With over two decades of operational history, the business is now used by dozens of paying clients and c.7,000 seats. With an LTV of c.$56,761 and c.1% MRR churn, the software generates revenues of c.$779K per year.
The business presents a great opportunity for a new owner to take over a market-leading B2B SaaS business, primed for growth.
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OTHER NEW LISTINGS
Subscription Box E-Commerce – DIY & Crafts Kits – $16.8K Gross/Mo
- Mature subscription e-commerce business in the lucrative DIY niche
- Strong compound quarterly revenue growth of c.12.7% between Q1 2019 and Q2 2020
- Superb unit economics including a high LTV of $223 in the LTM and strong net margins
- Highly robust, All-American supply chain with low lead times
Yearly net profit: $79,500
Asking price: $240,000
Affiliate – Hunting Accessories & Outdoor Equipment Resource – $2.2K Gross/Mo
- Firm foothold in the hunting accessories and outdoor equipment niche
- Strong SEO presence with keyword rankings for c.3,900 keywords
- Impressive traffic statistics with c.79,000 visitors and over 90,000 page views in the L10M
Yearly net profit: $24,000
Asking price: $78,000
SOLD BUSINESSES
Affiliate – Tennis & Racquet Sports Reviews – $1.2K Gross/Mo
Affiliate – Health & Fitness Product Reviews – $19.4K Gross/Mo
SaaS – B2B Inventory Management & CRO Shopify Apps – $43K MRR
Until next week!
The FE International Team