Around a month ago, I went full transparency and shared the April numbers of our DTC business. Let's make full transparency a tradition and review May, too!

May resulted in:

• $69k profits (after salaries) on $198k of revenue (34.8% net profit margin total for the business, 18.5% online)

• 1852 orders

• 296 new customers

• $11.1k ad spend (18x MER, thank god for physical stores)

• $37.5 blended CAC

• $14 contribution margin per new customer

Overall, I'm pretty happy with this. Our 1-year-old was sick for two weeks straight. I'm the most flexible between wifey and I, so I was more or less out of the game for two weeks. We also closed a market down (Germany) because of the whole burned-out-so-we're-only-doing-the-highly-profitable-stuff-right-now-situation. So yes, pretty happy with the results.

In the perfect world, our online net profit margin (18.5%) was a little higher. May is one of our peak-season months, so 18.5% here probably means closer to ~10% over a full year (total guesstimate). But overall, I don't think we can really complain.

What went well:

• A solid $14 in margin per new customer across all markets. A lot of this is because of Kleio, which has made it a lot easier to track and correct things day-to-day

• It seems like we have a really healthy business that produces a lot of money relative to the inputs (I work on this ~2 days/week)

What could have been better:

• A solid $14 in margin per new customer across all markets. We could probably have traded a bit of this for some more volume.

• Our expected margin per new customer in one of our markets is negative because of a high CAC. Meaning, our acquisition is likely unprofitable whenever we get the expected amount of returns back. However, our CACs are within our bids in both Meta and Google. So, I think our new customer campaigns are hitting existing customers. I need to figure out how to tighten up the exclusions. (THANK GOD FOR THIS REVIEW!)

• Because we don't have any Swedish-speaking in our company anymore, we're lacking a bit on the Swedish ads. I plan to convert video ads to Swedish using AI, but haven't pulled myself together to do it - yet.

• I could have sent out a few more emails between the puking and the chickenpox

How was your May? 🤞

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