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<aside> 💕 RealRoots helps women create long-lasting, meaningful friendships.
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Metrics:
*This reflects LTV per converted user in Seattle and NYC, the two cities in which we are experimenting with retention offerings.
| May 2024 | Jun 2024 | Notes | |
|---|---|---|---|
| Cash on hand | $1,184,660 | $1,158,240 | |
| Burn | $43,191 | $26,420 | In June, we made an effort to improve our unit economics in new markets by 1) decreasing activity costs, 2) and increasing average group size from 7.2 in May to 8.1 in June, which means the group costs are split across more people. |
| Runway | 27 | 44 | |
| Monthly Revenue | $70,120 | $52,620 | Monthly revenue decline from May is primarily due to conversion rates decreasing from 48% in May to 37% in June (historical average is 40%). The last week of June had 25% conversion rate, which is the biggest driver of the decline. We believe this is due to the series starting on the week of 4th of July (i.e. the following week). Next year, we’ll skip that week entirely so folks who are traveling don’t feel badly about missing the start of the series. |
| LTV/converted user* | $268.1 | $273.1 | The modest increase is due to our offering four identity group series (for queer & black women). The primary impact of the new series is better matching users who prefer friendships in their community, but it also has led to some past users purchasing a second series to meet additional friends in their identity group. |
Up and coming: Next month our $10/month subscription turns on. We began packaging them in to 100% of Seattle/NYC series in mid-June, and they turn on after the series ends. After they turn on, we’ll increase our LTV per converted user by up to $10 per month each month if nobody cancels (likely ~$7/month). |
Goals:
Jun 2024 Assessment:
| Growth | In May we unlocked some marketing optimizations that led to 52% MoM revenue growth from April growth driven by higher ticket sales. In June, we maintained that same rate of ticket sales, but decreased our revenue by $17K due to a drop in our conversion rate (48% to 37%). |
|---|---|
| Product/Retention | Figma design for our mobile app is completed, and the Flutterflow app will be in the appstore in the next couple months. We’re excited! |
| Team | We’re actively sourcing and interviewing for two roles: 1) a founding eng/CTO, and 2) an ops lead. |
Jul 2024 Goals :
| Growth | We’re maintaining to slightly increasing our ticket sale rate in July, and target getting ~$65k in July, assuming historical conversion rates (May was higher than our historical average, and June was lower) |
|---|---|
| Product/Retention | We’re targeting ~$7 increase in our LTV/converted user to $280. |
| Team | We have several really promising candidates in final stages of the pipeline for ops and likely will extend an offer in July. We have 1-2 promising candidates in the pipeline for founding eng and are working on sourcing more. |
Asks:
Nothing this month
Inspiration (also important for growing a company!):
Spotted: thoughtful affirmation from new friends to one another