Shareholder Update: Q2 2020 and July

Aug 13, 2020 3 min readReports
Photo of Caryn Hubbard
Caryn Hubbard

VP of Finance @ Buffer

Note: This is the quarterly update sent to Buffer shareholders, with a bit of added information for context. We share these updates transparently as a part of our ‘default to transparency’ value. See all of our revenue on our public revenue dashboard and see all of our reports and updates here.


It's been quite the year and it's hard to believe that the first half of 2020 is already behind us.

I'm happy to share that we've come out of our projected revenue downturn in Q2 with good MRR growth in July and renewed optimism.

We're feeling motivated about what we'll accomplish these next few months as we continue to focus on product strategy and adding significant value for customers as top priorities. Read the latest from our CEO Joel to hear about the evolution of product over the past 10 years and where we're going from here. This includes our active search for a VP of Product and our plan to launch Engage, a social engagement product for small businesses that evolved from our experiences growing and sunsetting Reply.

Let's take a look at the financial result highlights for Q2 and how we've been supporting our customers, communities and team.

Financial results from Q2, 2020 and July, 2020


Q2, 2020

  • Total net income: $832,000
  • EBITDA margin: 16.2%
  • MRR: $1,704,768 (down from $1,830,267 MRR at end of Q1)


July

  • MRR: $1,728,259
  • ARR: $20,739,108

Our bank balance at end of July was $7.2M, with a net cash balance (after paying off our line of credit) of $5.9M. We generally aim to keep three to six months of operating expenses on hand. This position has been instrumental in navigating the uncertainties of 2020 from a proactive position.

We look at revenue per employee from the lens of growth by taking ARR divided by total number of employees and contractors. We generally aim for $200k (or higher) in ARR per teammate.



Supporting our customers, communities, and team


We expected this revenue downturn in Q2, a majority of which is a result of extending payment relief to customers whose businesses have been adversely impacted by the pandemic. We've helped over 1,200 customers and extended a total of $191,000 in payment relief.

In May, we experimented with a 4-day work week in response to the added stress and pressures individuals have experienced due to the pandemic. After a successful first month, we decided to pilot this model through the rest of this year.

In June, we committed to anti-racism work in solidarity with the Black Lives Matter movement. We've donated a total of $100,000 to organizations that our Black teammates selected: The Marsha P. Johnson Institute, The Marshall Project, and Brave Space Alliance, while also doubling the charitable contributions made by our teammates. To date, we've made $120,000 in donations to more than 40 different organizations working towards anti-racism.

Looking ahead


In June and July, we've seen an increase in new business, expansion revenue, and reactivation revenue along with lower levels of customer churn. We are happy to see that Q2 growth decline shift towards a positive level of MRR growth for July and we’re seeing the same trend for August.

For the rest of Q3, we're expecting the small growth rebound to continue while we also make an impact on customer retention and value by focusing on product strategy. Metrics and numbers are moving in a conservative, yet positive direction.

Brought to you by

Try Buffer for free

140,000+ small businesses like yours use Buffer to build their brand on social media every month

Get started now

Related Articles

#wpApr 10, 2020
Pay Analysis Update: Examining Equal Pay at Buffer in 2020

Editor’s Note: Thanks for checking out this post! We’ve released our updated 2021 pay analysis here. You can’t improve something if you don’t know that it needs to be improved. That was very true for us four years ago when we first started looking into equal pay at Buffer. We have long used a salary formula to determine all of our salaries – the same role in the same part of the world receives the same salary. That m

Buffer Shareholder Update: COVID-19 Impact and Approach

Ever since the world got turned upside down by COVID-19, it’s been “business as unusual” for everyone – Buffer included. I sent this update out to Buffer’s investors one week ago. I hesitated on whether to share it more widely, as I know a lot of companies have been impacted more severely in these times. That said, I believe it makes sense to lean into our company value of transparency, since there may be some companies this could help, and it shows Buffer customers that we will be around beyon

#wpMar 29, 2019
Our Latest Pay Analysis: Examining Buffer’s Gender Pay Gap in 2019

Thanks for reading our equal pay report. See our updated 2021 pay analysis here.  Progress seldom looks like the straight line we all wish it might. Real life is much messier, filled with false starts, mistakes, and backtracks. That’s an especially tough truth when it comes to issues like the gender pay gap that affect real people’s lives so deeply. But in advance of this year’s Equal Pay Day, Buffer has a progress story to tell – and it looks nothing like a straight upward line. What is E

140,000+ people like you use Buffer to build their brand on social media every month