Consumer SaaSNov 5
Cloud Video Creation Software
This online video maker sells subscriptions to small businesses, marketers and creators, and reaches an email audience of more than 27 million.
- Ask
- $7M
- Profit
- $1.2M
- Multiple
- 5.8x
- Ask
- $7M
- Revenue
- $7.9M
- Profit
- $1.2M
- Margin
- 15%
- Multiple
- 5.8x
- Age
- 17+ yrs (product history)
How it rates
ValuationHigh
Other consumer software businesses we've tracked mostly ask 2.6–4.9x profit, or 2.2–5.0x adjusted for its short history or recent decline and its size; this one asks 5.8x.
Durability
Over 17 years old, but revenue fell 20% last year and churn is rising.
Hands-off
A team of 2 to 20 works on it under a holding company; owner time isn't stated.
Why it's interesting
- An email audience of more than 27 million and about 1.1 million new users a year dwarf the paying base, a large pool to convert or win back.
- Last month brought $538K in revenue and $265K in profit, well above the last 12 months' average of about $100K profit a month; the seller says cost-cutting team changes have settled over the last 6 months.
- The ask is about 1x the stated $7M in yearly recurring revenue, and the sale is cash-free, debt-free and run by Acquire's M&A team.
What to watch
- Revenue fell 20% last year and churn of 5-10% is shown trending upward; last month's $538K times 12 is about $6.5M, below both the $7M recurring figure and the $7.9M of the last 12 months, so the slide likely continues.
- Customer counts don't line up: the email cites about 34,000 paid subscribers, the listing page 5,000+.
- The seller names CapCut, Adobe Express and Vimeo as competitors, and AI video tools are likely to keep pressing on template-based editors.
- At 5.8x profit the ask sits above the 2.2-5.0x range for comparable consumer software; it looks cheaper only if last month's profit level holds.
Ask the seller
- Can you share monthly revenue and profit for the last 24 months, before and after the team changes?
- How many paying subscribers are there today (34,000 in the email, 5,000+ on the page), and how do they split between consumer and SMB plans?
- What does the paid funnel cost each month, and what share of new paying users comes from it versus free sign-ups and the email list?
Growth plays
- Add paid hosting and distribution tiers for business users who publish their videos, a play the seller names.
- Sell group plans with classroom templates to schools and teachers, an audience the product already serves.
- Run win-back offers to lapsed and frequent free users on the 27 million-plus email list, built around new AI-assisted editing.
Nov 6Added to Acumen Wire