Weebly Seeing a Slow Growth Year over Year

Confidence: Medium
Impact: High
Disposition of finding: Neutral/Unknown

Weebly is a web hosting company founded in Pennsylvania in 2006. It’s one of the first WYSIWYG (why you see is what you get) drag and drop type interface for web applications including blogs, making it one of the lowest barriers to entry of any web application hosting company and therefore quite promising.

While the company seems to be doing quite well and has some rather large backers, with a claimed 20 million sites hosted, it’s not a company that has explosive growth thus far. In the last year I can see a growth closer to 6% year over year. That’s not bad, and there is some room for error in those estimates, but I would like to see something closer to 30% growth in new websites hosted.

Now with a business like this, it can be quite tricky to tackle absolute dollar numbers that a company like Weebly could make. By up-selling services on top of the existing platform it could be quite possible to make a significantly higher revenue number than by hosting alone. It’s not clear why more people aren’t using them – maybe it’s the ever-elusive “cool” factor, or better affiliates for competitive hosting, etc…. Who knows? Either way, I still would prefer to see a larger growth pattern going forward to consider this a promising exit.

Obligatory legal disclaimer.