3 takeaways from Substack’s newly released financial results

I’m excited — Quite a bit I used to be excited – once I realized that Substack’s fairness crowdfunding effort would announce monetary outcomes.

Sadly, as a result of guidelines and timing of fundraising, Substack shouldn’t be required to element its 2022 financials and due to this fact start is released Mounted information for 2020 and 2021, and particular user-specific metrics for the previous 12 months. This supplies an fascinating, if incomplete, image of the corporate’s well being.

The inventory market explores startups, markets and cash.

Learn on TechCrunch+ each morning or get The Trade publication each Saturday.

I hoped to spend a while this morning pondering the morality of Substack’s selection to not share its audited 2022 outcomes, however Dan Primack confirmed this claim on Pro Rata this morning. Since I could not enhance on his phrases, we will go away that time to Axios and as an alternative focus our fireplace on parsing the information.

So, to kill time whereas we feed our hangovers after the Y Combinator demo day, let’s look at Substack’s development mannequin (together with its newest non-financial information), replicate on the corporate’s present monetary well being, after which examine its upcoming capital increase. potential money wants.

This might be enjoyable. Consider it like a fast look at a partial S-1 file, however for a Sequence B firm. Sound good? To work!

An excessive amount of information however not sufficient

You’ll be able to learn all of the revealed monetary outcomes of Substack. Here If you wish to play collectively.

To get began, the corporate Raised a lot of money until 2021 investing in its platform and rising its consumer base. Subsequently, when evaluating its outcomes as much as 2021, it’s price remembering that the corporate was centered on development at the moment. How did that occur?

Substack’s development mannequin is dear if efficient

Substack’s gross income elevated over 400% from $2.4 million in 2020 to $11.9 million in 2021. That is precisely the sort of income development enterprise backers need to see from a startup within the funding cycle. The corporate introduced an enormous $65 million Sequence B Sequence in early 2021, that means it had entry to that cash later that 12 months.