Square to buy Weebly for $365M
cnbc.com
cnbc.com
This is, I think, a smart move for Square. Stripe has been moving up the stack aggressively (and much faster than Square, who were very effective in the beginning, but kinda stopped innovating), making it easier and easier for people without a dedicated software team to build out an online sales channel. Weebly has a lot of that stack already built. You can build a website and sell things in a very short time with Weebly already. I imagine Square will be making the "sell things" part of it even more core to the experience.
And, businesses do not change payment processing often. If you lock them in when they're brand new and tiny and using something like Weebly, while also providing paths for growth, you'll probably keep them basically forever. We've rebuilt our website and ecommerce basically from the ground up four times since we launched the company a dozen years ago and have only changed payment providers once (maybe twice, I can't remember if we launched with Authorize.net and moved to PayPal soon after or if we switched before launch...partly based on ease of deployment and management). That's a lot of money made on that initial customer acquisition. To get businesses earlier than that, you need to have a really clear path from "I don't have a website at all" to "I have a website and can sell things with it."
Enjoy your private islands, or the next project, or whatever y'all decide to do next.
hindsight is 20/20
Edit: Here's a few...
2008: https://news.ycombinator.com/item?id=352445
But, Google would work with the `site:news.ycombinator.com` feature.
They weren't necessarily the hottest company from our batch with investors at the time, and they weren't the odds-on favorite to be among the biggest YC exits. There have been, what, maybe a half dozen bigger exits in all of YC history, thus far, if that many? I haven't really kept up with YC companies that I don't know personally, and I'd guess that in five-to-ten years this may seem like a quaintly small exit by YC standards, but for now, that's a lot of money.
I liked them based on their execution and pragmatism, not on their credentials or merely being smart (everybody in YC was wicked smart...it's the first time I'd been in a room where I was pretty confident that most of the folks in it were smarter than me), and I think investors may have been occasionally looking first at the companies out of Stanford/MIT/CMU/etc. I doubt they had trouble raising money but I never recalled them being widespread favorites among the Valley's cognoscenti either.
Not all businesses are about taking over the world.
2.4 mm annually is considered a small business? On what Planet? My experience says that's a very successful SB to say the least.
200k per month and not on Amazon? And your using Stripe/Square/Weebly and not getting InterX Plus? Tell me your website again..?
Considering rates, square is usable at 5k/mnth or below, avg ticket $10 or below. Now if you were laundering money square is great since they do 0 background checks. I'm looking at pizza joints in Brooklyn... you know who you are.
TLDR Square and weebly are terrible platforms for people that dont know any better. Ditto for Wix. I LOL IRL when someone says they use either of these platforms.
http://www.businessinsider.com/list-credit-card-processing-c...
All of my comments above were about the cottage industry where Weebly shines. There's a whole bunch of people making a little bit of money online...they aren't big clients for Square, but in aggregate they add up, and some of them will grow and Square will keep them as customers as long as they provide paths for growth.
I think there's just a breakdown in what kinds of business we're talking about in this conversation. Yes, in many segments, $2.4m annual is a small business (it's well under 50 employees, probably well under 25 employees). But, as businesses with their sites on Weebly go, it's pretty big. Weebly has always been a place to go for a first website, particularly for non-technical businesses...it's just not the place you go when you're building a multimillion dollar business.
So, both things can be true: $2.4m annual revenue is a relatively small business, and most businesses on Weebly will never grow to that size.
I'm guessing that small local businesses tend to use website creators, and it's mostly profit (once you have a good tool).
Does anyone have any more insight?
Square ecosystem partners will get replaced by Square directly over time; like how Twitter ate all its ecosystem partners with its own competitive offerings.
Competitors Wix and Squarespace have raised much more money and would probably have been too rich for Square to buy. Wix is now a public company too.
I don't see that number, but Weebly cannot have 50M customers. That's a 1.5 order-of-magnutude error.
https://www.crunchbase.com/organization/weebly#section-overv...
Next Square will expand Weebly into offering more tightly integrated online presence management services for small businesses. E.g. a SinglePlatform competitor for restaurants. They can then use their existing relationships with small businesses to cross-sell (which has been their modus operandi for a while now).
But Square's current online store offering _sucks_. It won't soon.
Shopify, Square and Stripe are poised to become direct competitors if you follow this inertia.
he wrote this about Zillow going into buying real estate recently:
https://stratechery.com/2018/zillow-aggregation-and-integrat...
i’m not smart enough to look into Jack’s mind but I’d draw the value chain chart out for Square/Weebly and see if I can find some bigger trend.
Great move for Square IMO. Congrats to the Weebly team.
Having said that, this isn't a bad outcome by any stretch so congrats to them.
This is why Weebly is a 360 million dollar company and Uber is a 30 billion dollar company (100x difference). Uber is building a monopoly that almost completely precludes competition. There simply isn't anything close to this in Weebly's business model.
Blue Apron is a good example of what happens when CAC gets out of line. Check it out.
Of course it's your opinion. You don't actually know their acquisition costs, or the strength of their network effects. You're out here making educated guesses, like the rest of us. Just because you're really confident about your guess doesn't make it automatically correct.
I think the biggest life-changing event for most will be working at mid-Market vs their current office in Soma.
All Facebook needs to do is add a few more features:
- Online menus (most restaurants are just uploading a photo of their menus)
- Online reservations, and online ordering (for delivery/pick-up)
- Ecommerce store (payments, delivery, etc.) and management (inventory) for retail shops (boutiques, etc.)
Either way, this is a perfect fit for Square - they already offer simple "one-page" web stores for merchants, tying in a full-featured website or store instead makes a lot of sense.
https://mixergy.com/interviews/david-rusenko-weebly-intervie...
For perspective, competitor Wix is a $4B market cap company at a ~$500M revenue run-rate. Shopify, which is quite different, has a $12B market cap at ~$1B run-rate. This is a massive market.
I myself had dinewebs.com with the same idea for the restaurant vertical, but as a 14 year old I couldn’t even finish the project!
I agree... that was when DHTML and VBScript were a thing. Not even JQuery was created. "AJAX" was just JS loading content in hidden frames... good times though.
$365m exit = 4.5x revenue compared to 12x for Shopify and 8x for Wix. Quite a discount.
Late stage investors from 2014 who put in money at $455m valuation just getting their cash back. 0 return for 4 years of capital being tied up (vs. 80%+ for even an SP500 Index fund)
In 2014 Weebly was worth $455m [1]. 4 years later in 2018 it is worth $365m. Imagine how much more an employee could have made working for 4 years at a public BigCo with RSUs you can sell every year. This is just another startup lottery failure. Employees got screwed.
[1] https://blogs.wsj.com/digits/2014/04/22/weebly-valued-at-455...
What bigco are you going to work for in SF that gives those rsu grants? Salesforce, LinkedIn, and...? I wouldn't be willing to waste my life riding up and down the peninsula for that rsu grant.
*If maximizing for total comp
Google doesn't have engineers working full time in the SF office. They highly discourage it. The SF based engineers have a stigma that they're lesser than the MTV counterparts.
FB doesn't have an SF office. Dropbox wasn't liquid until this year. To say people wasted time or got screwed 4 years ago by not going to work for bigco isn't fair.
This was a "take what you can get" deal for the founders. Hope Square can recharge the product with an innovative vision.
Wonder what most people do in that situation...