Is your website up to par with your competitors? Having a an elegantly designed site with robust functionality and engaging content is critical to driving organic leads and converting them cheaply.
Webflow was built to give anyone the opportunity to design, build, and launch responsive websites visually, while still maintaining clean code in the process. Their platform allows businesses and freelancers to build custom blogs, portfolios, eCommerce stores and more.
How much is Webflow doing in MRR?
Webflow is a pure-play SaaS business that charges its customers on a monthly basis. Their typical customer is a freelancer or startup looking to build good looking, yet robust sites for content publishing and pays them approximately $40 per month.
According to CEO Vad Magdalin, the company is now serving 30,000 paid customers and is doing around $1.2M in MRR today. Webflow has shown sustained growth since their founding in 2013 and has nearly doubled revenue year over year.
What is Webflow’s churn?
For Webflow, churn is measured at a cohort level, with their SaaS product exhibiting 4-5% gross logo churn monthly. Overall, with expansion revenue, the company is at around 0% net revenue churn overall.
In terms of customer acquisition, Magdalin explained that Webflow aims for a 3 month payback period when landing a new customer and is hitting that mark today. Currently, they are spending around $80 in CAC right now with a majority of their new customers coming through organic channels.
How much has Webflow raised?
Webflow has raised $2.9M in total venture capital, with their last round coming in 2013 upon completion of YC. Since, the company has focused on hitting profitability and has been cash flow positive for a number of years. Going forward, Magdalin has no plans to raise additional capital.
With a distributed team of just 55 full-time employees, Webflow is running an impressively lean organization. Going forward, their main focus is on mastering their pricing strategy and continuing their healthy growth next year before exploring potential liquidation opportunities.