Note: This is a quarterly update addressed to Buffer shareholders, with a bit of additional information for context. We transparently share these updates as part of ‘default is transparent‘ value. See all of our revenue on our publicity revenue dashboard and see all of our reports and updates here.
Before going into the numbers, let’s celebrate a sizable milestone this season – Buffer’s 10th anniversary!
At the end of 2010, Joel released the first version of Buffer and led the company very early on sparkle of an idea to build a company that currently generates more than 21 million dollars in annual revenue.
It is a myth to contemplate the various control points, successes, and challenges experienced over the past decade. Experience, growth and learning have truly shaped where we are today and where we are next. We will share more reflections in the near future.
We also have another interesting piece of news to share. As you may know, we’ve been looking for an experienced product leader to join Buffer for quite a long time. We are delighted to welcome our new Product Manager, Maria Thomas, for our team. We look forward to working with Maria to expand our unique strategy to serve our customers, differentiate Buffer and continue to achieve sustainable, solid growth over the next few years.
Let’s take a look at our financial results for the third quarter and year-end outlook.
Financial results for the third quarter of 2020
Quarter 3, 2020
- Total net income: $ 700,996
- EBITDA margin: 16%
- MRR: $ 1,761,962 (up slightly from $ 1,705,370 MRR at the end of Q2)
We expect overall ARR by year-end to be just over $ 21.1 million. This forecast is the overall decline in ARR compared to ARR in 2019, and we can attribute it to a number of factors:
- Our decision to Q1 / Q2 Sunset Reply and focus those resources on building a product that is better suited to the overall Buffer experience for SMB customers.
- Our 2nd Quarterly Feedback on Expansion Payment relief for customers struggle to adapt to the adverse effects of the pandemic on their businesses.
- The volatility of financial markets is caused by the economic impact of the pandemic on US businesses and global businesses. Businesses represent a significant portion of our customer base and revenue. We are all adapting to a new normal, experiencing uncertainty in this next wave, and this inevitably influences consumer behavior even in the social media space.
We have a number of initiatives underway that are expected to have a positive impact on new business metrics and retention. We’ll share more about those product features in our Q4 report.
* The decrease in our bank balance is due to us paying off the bank’s credit line.
As we enter the final weeks of 2020, senior leadership is reinforcing our company’s goals for 2021 and setting shorter-term OKRs across all sectors. We are delighted to welcome Maria to the team and continue to build on the knowledge learned over the past decade.