Fellow shareholders,
I’m pleased to report that we just released our annual 10-K report, and we are proud of our growth and achievements in the last year. I highly encourage you to read the full press release that provides an overview of the
improvements from year to year. I have also included a few major points below this letter as well.
Overall, we are demonstrating dramatic growth from year to year. These results are highly encouraging and bring us within reach of our operational profitability goal. Our efforts to grow revenue in the past quarter have been especially effective. Although the global pandemic negatively affected many industries, Leafbuyer has pivoted with many new products and we are very
encouraged by the market response.
This progress is exciting, but we have more ambitious goals for accelerated growth. We are hard at work right now with some very exciting developments and hope to have updates very soon. Meanwhile, our strategy team will continue to seek valuable partnerships and possible acquisition targets. I will strive to keep you informed of our progress.
On behalf of the Leafbuyer team, thank you for your support.
Kurt Rossner, Chairman and CEO
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Leafbuyer Fiscal Year Highlights
- Annual revenue rose 41% year over year
- Annual revenue rose 41% year over year
- Gross profit increased 52% year over year
- Expenses from operations decreased 18% year over year
- New customers utilizing texting platform increased 116% July to June
- Texting credit usage on the Leafbuyer platform increased 179% July to June
- 2020 revenue growth represents a 124% increase over fiscal year 2018
- Average annual revenue growth rate is 50% for last two years
- Cash collected from monthly recurring revenue increased 48% with an average monthly growth rate of 9% in the last 6 months of the year
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Loyalty & Dispensary Growth
While many companies faced serious challenges due to the pandemic, Leafbuyer is growing in the new paradigm. The Leafbuyer team made a strong pivot in March to present itself as the leading communication
and ordering solution for cannabis businesses facing the COVID-19 outbreak. This strategy gained momentum and led to a strong summer of growth. In fact, the last few months of the 2019-2020 fiscal year were some of the most successful of the entire year.
The success is evident in the growth of the dispensary vertical. Leafbuyer targeted dispensaries, which were deemed to be essential businesses, leading to a 32% increase in billings from dispensary customers in the period of June through
August compared to March through May. In July, the first month of the next fiscal year, Leafbuyer realized a 64% increase in cash sales compared to the same month of the previous year.
To maintain their connections with customers, dispensaries have been making extensive use of the Leafbuyer Loyalty platform. The communication tool saw a 33% increase in text credit volume from January through August 2020 versus the same period in
2019. August 2020 also represented the highest month on record for text credit volume for the platform.
Clearly, the Spring 2020 pivot has proven successful. More and more dispensaries are realizing the value of the Leafbuyer platform as new clients switch from other providers and current clients increase use of the text message tool.
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The Leafbuyer sales team is having success securing new customers – especially on the texting and loyalty side. Looking ahead to the rest of 2020, the Leafbuyer team is eager to launch new products, win greater market share, and increase monthly revenue.
These efforts will help Leafbuyer accomplish its primary goal of positive cash flow. In addition to bringing on new clients, Leafbuyer is also focused on retaining and upselling current clients. Implementing new products will lead to more opportunities to provide value for and gain revenue from the current client base. Every strategic decision is made with the purpose of increasing long-term value for
the Leafbuyer shareholders.
Leafbuyer will issue timely communications as important information becomes available.
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