SimpleSite is able to predict with great accuracy how many new customers the company can acquire using online marketing. This means that liquidity is almost the only barrier to company growth, which has seen a significant acceleration in 2012 and 2013 - and which temporarily affects the bottom line of the company’s annual result.
"We are stepping hard on the accelerator in 2012 and 2013, but in a controlled fashion - and we can see that our business is expanding as projected. From 2014 there will be a nice positive result from the clients that we have acquired in recent months,” says Morten Elk, CEO of SimpleSite.
Initial results of this acceleration is a 30 percent growth rate in the first quarter of 2013 compared to first quarter of 2012, which saw a growth of 22 percent for the entire year. This indicates that the company business model is fully scalable. By the end of 2013 Morten Elk expects to have 89,000 subscribers versus 59,000 at the end of 2012.
Expansion to 24 countries comes at a price
SimpleSite is expanding to 24 countries and is creating controlled growth through online advertising and local partnerships.
“We added six new countries in May and will launch three more in the coming months, so we will reach 24 countries in total. We expect that this will increase our rate of growth to over 30 percent for the remainder of 2013,” Morten Elk says.
The company has just published its 2012 annual report, which shows a slight loss in profits, despite revenue growth of 22 percent. The 2012 loss can be attributed to the affect of an increased stream of customers with the same affect forecast for 2013.
In 2012 SimpleSite secured a financing package of 8 million DKK from Kaare Danielsen, which Morten Elk intends to invest in company growth in 2013.
A proven formula for acquiring customers
SimpleSite’s customers use the product on average for 3 years. By marketing and analysis using Google Adwords the company is able to accurately calculate the average acquisition price of each new customer, thereby giving 123hjemmside.dk a simple formula, whereby investment in advertising creates a threefold return on investment from future customer subscription payments.
” Every new subscription sale is profitable business for us in terms of customer lifetime value. We are very confident of this based on our many years of analysis and experience and this is a crucial factor when we make large investments in acquiring new customers” says Morten Elk and goes on to say:
“It’s a milestone in the field of Software-as-a-Service (SaaS) to achieve this relationship between the price per customer and the customer lifetime value, so we are very pleased with this achievement.
Key figures 2012
- Revenue: 33,3 million DKK (2012: 27,4 mio DKK). 22 percent growth.
- EBIT: -1,6 million DKK (2011: 2,6 million DKK)
Global growth engine
SimpleSite has an official market presence in the following countries:
Denmark, Sweden, Norway, Finland, The Netherlands, Belgium, Luxembourg, France Italy, Germany, Austria, Spain, Switzerland, the United Kingdom and the USA.
In May of 2013 SimpleSite launched in Poland, the Czech Republic, Malaysia, Russia, Greece, Portugal, Indonesia and Turkey with Brazil to follow soon.
SimpleSite A/S has an annual revenue of over 33 million DKK. The customer base is constantly growing and the company has over 67,000 paying customers from all over the world. SimpleSite was founded in 2003 in Copenhagen, Denmark, by brothers Morten and Jacob Elk. They had a vision to create the most useful and user-friendly system to create your own website and thereby give users with basic IT skills the opportunity to put their personal and professional projects online.
The company launched SimpleSite.com in the USA one year later and as of 2013, SimpleSite is available with localized language versions in over 20 countries with more on the way.
SimpleSite has initiated an ambitious international expansion plan after securing an investment capital injection of 13 million DKK in 2012.
Read more on http://www.simplesite.com/pages/about-us.aspx
For more information please contact:
Morten Elk, Founder & CEO
Telephone: +45 2029 7505
Press Release - Fact Sheet - Morten Elk (photo) - Zip file