With so much hard work behind us, I am proud to announce that Q4 2020 will be our strongest quarter ever. We are heading towards USD 40 million in revenue and 60% growth from 2019, generating a positive cash flow of an estimated USD 4 million for the quarter. The total revenue for 2020 is estimated at USD 75 million.
Our current exponential growth puts us on a trajectory to double our revenue next year with a positive cash flow.
Back in March, our business was massively impacted by the COVID-19 outbreak. The demand for products for social gatherings and corporate events from our B2B customers fell off a cliff and our consumer brand plummeted in revenue. We had to transition from our 11 offices around the world to everyone working from home. All of this while we were in the midst of completing the transformation towards a full-fledged platform company.
That transformation would prove to be extremely well-timed. In June 2020 we launched our API service, which meant that we could open up our platform and network of production partners to anyone on the planet. Our integration with Shopify and Etsy made it possible for any e-commerce seller to instantly connect to Gelato to produce and deliver customized products, and since then our API business has grown by 20-70% each month.
We have never moved with more speed and focus than during 2020. We combated each challenge effectively, and most importantly, as one team. Thanks to our team members, partners, and customers around the world, Gelato is now growing exponentially.
Our vision of giving everyone the power to create, produce, and deliver customized products to any address on this planet was born back in 2012. We thought that the transition from a consumer brand, Optimalprint, to a global API service would take three years, but it ended up taking eight. With the transition behind us, e-commerce owners can finally sign up for our services via Gelato.com, Shopify, Etsy, or other e-commerce platforms. It has never been easier to launch your own global e-commerce brand selling locally produced wall art, t-shirts, mugs, books, and much more.
The past 10 months have demonstrated the value of resilient supply chains. We have witnessed logistical problems worldwide, especially across borders. Gelato’s customers have had minimal to no impact thanks to our resilient network with more than 100 local production partners across 30 markets.
Many entrepreneurs and online store owners have started their companies by choice. For others, it was forced upon them as they found themselves unemployed in the aftermath of the pandemic. Thanks to Gelato’s API service, business owners are empowered to reach consumers across the world with customized products - most delivered within 72 hrs.
Gelato is uniquely positioned to make its mark on all three dimensions - here is how:
Environment - Mapiful, a Swedish poster company, used to print and ship everything from Sweden to customers across the world. Now they produce in 24 countries with Gelato, and have reduced their carbon emissions by 67%.
Social Impact - This fall Gelato partnered with a group of Maori entrepreneurs from New Zealand. We have worked with artists and designers, enabling them to reach customers across the globe with their specially designed art posters, t-shirt designs, and mugs.
But also our more than 100 existing and 15 new print partners have experienced a surge in print volume from Gelato. By not owning print assets we are also taking an active part in growing local businesses and economies in hundreds of cities around the world.
Governance - With our operational principles and code of conduct each print partner is incentivized to constantly improve their operations and abide by local regulations. For example, we have been working closely with our print partner in Mumbai and improved the work environment for their employees.
We will keep expanding into new markets and product categories. The launch of apparel is a great example. Only weeks after launch, the demand is larger than our ability to supply with an annual run rate of several million dollars. Gelato’s product expansion will accelerate as we now are eyeing e.g. home decor, book publishing, merchandise, stickers, and more.
An organization’s grit and energy level will inevitably surface in challenging times such as this. We are coming out of this stronger than ever before. In 2021 we aspire to make Gelato one of the new tools that empower people to combat unemployment while continuing to execute on our vision - letting everyone share creativity in an eco-friendly way.
Best wishes for 2021,
Founder & CEO Gelato
Interested in learning more about Gelato? Listen to the podcast with Henrik Müller-Hansen
For more information, please contact:
CEO & Founder
Now available: Colored mugs, foam boards and brushed aluminum prints
Rethinking digital production: Meet one of Gelato’s greenest and most innovative partners
Sportymaps: Transforming a passion into a global ecommerce business
Local production of customized items will fuel ecommerce for decades to come
How to win the ecommerce race in 2021
Brexit: How to successfully adjust your ecommerce business