Dear Startup Investor,
Last time we wrote to you about Dealflicks, it was doing just fine, even exceeding our expectations. That was last October. At the time, the company was pulling in revenue at a $4 million annual rate. And it had expanded to 600 locations.
It’s still very early, and that’s to be expected. After all, we invested at the seed stage, the very beginning of the company’s journey.
That said, Adam and I are very pleased with its progress to date.
For one thing, it has continued to grow rapidly. For another, it has recently closed on a breakthrough agreement with its biggest customer.
Dealflicks’ current numbers show you how far the company has progressed since October. Number of total locations: 750. Expected revenue in 2016: $7 million.
It’s adding movie theaters all the time. Here’s a snapshot of our owler.com site, so you can see for yourself…
But Dealflicks’ biggest contract yet is what has Adam and me most excited. The contract is new. The customer isn’t.
It’s with Carmike Cinemas. When Dealflicks first inked a contract with Carmike over two years ago, it was for 18 locations. By last October, Dealflicks was serving 43 theater locations.
And last month, Carmike agreed to put its entire chain of theaters – 276 in all – into the Dealflicks system.
Dealflicks CEO and co-founder Sean Wycliffe says it has “gotten them past the critical mass point.” (To refresh your memory, Dealflicks’ app lets theater owners pick which movies they want to discount and at what price.)
Dealflicks has now sold more than 1 million tickets and concessions since its launch in July 2012. Our congratulations go out to Sean Wycliffe and the entire Dealflicks team. Your persistence and hard work are much appreciated.
Invest early and well,
Andy
Startup Investor Portfolio
