B2B SaaSNov 13
Freemium WordPress Login-Security Plugin with 5,000+ Paying Customers
A free WordPress login-security plugin with about 2 million installs turns users into 5,000+ paying customers, with the founders working only a few hours a week.
- Ask
- $1.5M
- Profit
- $405K
- Multiple
- 3.7x
- Ask
- $1.5M
- Revenue
- $480K
- Profit
- $405K
- Margin
- 84%
- Multiple
- 3.7x
- Age
- 6 yrs (2020)
How it rates
ValuationFair
Similar B2B software businesses we've tracked mostly ask 2.4–5.5x profit; this one asks 3.7x.
Durability
6 years and 5,000+ paying customers, but revenue fell 8% and sign-ups rely on WordPress's plugin directory.
Hands-off
The seller reports the founders put in 2 to 3 hours a week combined.
Why it's interesting
- The seller reports about 2 million plugin installs, and the plugin has 1,400+ reviews averaging 4.8 stars. Some hosting providers pre-install it for their customers.
- Repeat customers brought in 78% of revenue over the last 12 months, and the listing puts churn at 5–10%.
- Marketing costs about $500 a month and the profit margin is about 84%, so almost all revenue is kept as profit.
- The deal is run by Acquire's M&A team, which has verified the entity. The seller is leaving to start a new venture.
What to watch
- Revenue is down 8% a year, and last month's $36K is about $430K a year, below the $480K earned in the last 12 months.
- The stated $550K ARR is higher than the last 12 months' revenue, which doesn't fit a shrinking business. It may count annual plans or pricing that hasn't been collected yet.
- Most new customers come through the WordPress plugin marketplace, helped by host pre-installs. It competes there with established rivals such as Wordfence and Sucuri.
- The team is listed as 2–20 people while the founders work 2–3 hours a week, and the listing doesn't say who handles support, code and security fixes.
Ask the seller
- How is the $550K ARR calculated when revenue over the last 12 months was $480K and falling?
- What has driven the 8% decline, and how have paying customers and monthly revenue moved over the last 24 months?
- Who handles support, development and security patches today, and which hosts pre-install the plugin, on what terms?
Growth plays
- Build an agency tier with one dashboard for managing login security, blocked IPs and reports across many client sites.
- Sign more WordPress hosting companies to pre-install deals, offering them a revenue share on paid upgrades.
- Inside the free plugin, show users how many attacks it has blocked and offer the paid reporting features alongside that count.
Nov 14Added to Acumen Wire