June 2024 Shareholder Update

💡 Sent to shareholders on August 2, 2024

Hi there,

I’m happy to be back from family leave, and here to share Buffer’s June 2024 results and key updates. I'd love to hear from you with any reflections or questions - just hit reply.

Notes:

• For the last three consecutive months, we have successfully closed with a profit. We continue to see MRR growth.
• Our total operating expenses remained consistent with the last few months.
• We finished June with a profit of $86,000, our best result since October 2022.
• After many months of decline in our number of paying customers, it was great to see this number increase in June.
• It’s a slight concern that our MAU continues to remain stable, and returning it to healthy growth is a key focus.

Note-worthy updates and reflections

Threads Launch

We are thrilled to announce that we now support Meta’s Threads! We launched this integration on June 25 with the goal of helping users kickstart meaningful conversations and grow their following on Threads with planning, scheduling, and analytics tools. was our top feature request by far, and we were thrilled to provide this value promptly after Threads made their API available. As of the end of June, this resulted in 4,340 Threads channels connected to Buffer, 51,000 posts created, and 323 subscription upgrades. Read more

Duplicate Action

On June 19, we launched the Duplicate Action to 100% of customers. With this new action, customers are able to duplicate posts in any state (e.g in the queue, in drafts or in sent posts) creating even greater flexibility when sharing content across different social networks. Outside of new channel requests this has been a highly requested feature so we’re excited to add it to Buffer and make the content creation process even easier for our users. Read more

Profitability

June marked our third straight month of profitability in 2024. This brings our Net Income, YTD, to a loss of $202,000 down from $269,000 reported in May. Gaining and growing paid subscribers will continue to be a core focus of ours as we make our way back to profitability.

Q2 2024 Reflection

Q2 2024 was another strong quarter for the year and has contributed to the continued growth trajectory and return to profitability. We finished the quarter with a 1.94% increase in MRR/ARR, ending with $1,548,398 MRR, or $18,580,777 ARR. We saw a slight 0.08% decline in the number of paying customers, to 56,042. With our continued growth, we achieved profitability in each month in Q2, with net income of $217,354 for the quarter.

Segmenting out our Legacy and New Buffer segments tells a more complete story of the overall numbers. As a reminder, the New Buffer segment represents our new per-channel based pricing which we introduced in mid-2021. The New Buffer segment represented 79.8% of MRR and 76.4% of paying customers as of the end of Q2. New Buffer growth has been strong for Q2, with 7.48% growth in MRR/ARR and 5.96% growth in paying customers.

The Legacy segment continues to decline, as we are not adding any customers to the segment and churn continues to play out. Of the $68,685 net MRR increase in Q2 for the New Buffer segment, $17,424 (25.3%) of that increase was attributed to customers migrating over from the Legacy segment.

Given the much stronger growth in New Buffer compared to our overall numbers, we will likely see an acceleration of our growth throughout the rest of 2024 as the Legacy segment has a diminishing pull-down impact on our numbers. We will eventually see a reduction in New Buffer's net MRR growth due to the lack of migrations from Legacy, however we will see a greater positive impact to MRR as a result of the diminishing net MRR decrease from the Legacy segment. Net MRR decrease for the Legacy segment was $39,203, a reduction from $47,233 net MRR decrease in Q1.

Looking ahead to Q3, we see multiple opportunities to increase our MRR growth rate, and we also expect that this can be the quarter where we see an overall increase in paying customers again, as the increase in paying customers for the New Buffer segment outpaces the loss of paying customers from the Legacy segment. We are also starting to reflect on the end of our journey from Legacy to New Buffer, and putting a clear strategy in place for strong continued growth for the New Buffer segment as it starts to represent our growth overall.

That’s it for June. I’ll be back in touch in a couple of weeks to share our July results. In the meantime, please hit reply with any questions or comments.

Thanks for your continued support!

Joel, Founder CEO