- Krepling Investor Updates
- Posts
- December 2024 Update
Introduction
In December, we saw continued surges in platform activity, primarily driven by our higher ACV merchants who extended their holiday promotions through to the new year. This resulted in sustained high traffic levels and demand across the platform, similar to what we observed in November. However, as we approached the end of the holiday cycle, we strategically shifted our focus towards retention and mitigating seasonal downgrades, ensuring that merchants saw long-term value in maintaining their workflows and tech stacks beyond BFCM.
Historically, we see a rise in downgrades post-holiday as merchants reassess their software expenses and optimize costs. To address this, we took a proactive approach by engaging directly with our agency partners, emphasizing why their merchants would continue benefiting from their existing plans even after peak season. Instead of aggressively expanding direct sales, we relied more on natural upgrades and merchant-driven expansion, allowing businesses to extract additional value from the platform without heavy sales intervention. While we have not observed an unusual uptick in churn or downgrades, we anticipate a net revenue contraction of 2-10% for December due to merchants adjusting their plans. This falls within our expected range for this time of year and aligns with previous post-BFCM trends. Our efforts to reinforce retention and workflow utilization have helped stabilize these numbers, and we remain focused on ensuring a strong transition into the new year.
As we head into Q1, our attention will remain on sustaining merchant engagement, further optimizing retention strategies, and ensuring that the seasonal downturn in upgrades and expansion is met with strategic interventions to drive long-term platform adoption.
Revenue 🚀
Krepling is now at $445.2k in MRR, pacing 5-7% MoM revenue growth.
Other KPIs 📊
Average monthly gross churn (%) is at 3.9%, Average MRR net retention is at 108%, Average gross margins are at 88%, ARPU is at $4.9k
Burn 🔥
Krepling burnt $70,505 during the month of December.
Runway 🛫
We estimate we have 12-18 months of runway given the current cash on hand.
Team Size 👥
Krepling currently has 10 team members (including both co-founders).
Click here to explore openings at Krepling
We are hiring in almost every sector! Feel free to reach out with resumes you feel we should be taking a look at.
Product Update ⚙️
The current development status of V2.0.0 of the product (titled 'V2 Release') is at 12%.
Asks and Discussions 🗣
There are no asks or discussions this month.
Reach out 👋
My email: [email protected]
If you would like to quickly catch up let's schedule 15 mins here:
Best, Liam