Fast Growing SaaS | Transport Management Space | ~$1m ARR w/ 350%+ YoY Growth | $40,000+ CLTV
Developed in 2020, this SaaS business is one of the fastest-growing and most profitable platforms in the transport management space.
The product has rapidly filled a large gap in the market for small/medium-sized businesses struggling with global supply chains and as such, has seen huge growth, shortly to exceed $1M in annual recurring revenue (ARR).
The software helps customers by gathering together intelligence from disparate logistics networks, analyzing their transport options, and then serving them optimal logistics strategies through its unique artificial intelligence and easy-to-use interface. The result is a large reduction in operating costs, improved shipment tracking, a lowered carbon footprint, and enhanced customer satisfaction.
The business has grown significantly since its launch with ARR up 350% in the last year and continues to grow rapidly. The app now has 20 customers (two more onboarding in March), with a combined ARR of $960K, an average revenue per account of $4,000, and 0% churn thus far. Clients pay monthly but agree to a 12-month auto-renewing contract giving strong monthly recurring revenue visibility and a minimum customer lifetime value of $40,000-$48,000 with this expanding to $75,000-$90,000 by the end of 2023. Looking ahead, the owner expects continued strong growth and an ARR of $2M (+100%) by year’s end.
The business is currently managed by one founder and a team of three full-time employees including a full-stack developer, all of whom wish to stay with the business. The lean nature of operations means the business enjoys 70% margins on earnings before interest, taxes, and depreciation, giving a new owner significant cash flow to plan for growth opportunities in business-to-customer sales, automating freight rates, expanding marketing, and growing its freight network.
The owner is selling to care for a family member and because they cannot give the business the attention it needs to grow to $5M+ ARR.