Lambs generated solid revenue of around $2.9 million in 2020 and 2021. However, Lambs has existed for six years now, and it’s operating in an established market. With that context, a revenue growth rate of just 1.4% seems less impressive.
The company’s revenue has been 51% higher than the cost of goods sold, which is very impressive. However, its net loss increased by 23%, going from $992,659 in 2020 to $1.2 million in 2021. This means Lambs can sustain losses for only three months before it runs out of money. But the good news is that Lambs has no long-term debt and only $654,462 in short-term liabilities.
Although the company did not officially report this in its financial statements or offering circular, Lambs claims that it has been profitable so far in 2022. The company projects revenue to hit $15 million. If this is true, then it puts the company in a strong financial position. Lambs also reports that over the past few years, sales efforts have been 5x more effective, and customer acquisition costs decreased by 3x. However, in the raise page comment section, co-founder Arthur Menard de Calenge states that Lambs spends 25% to 30% of its revenue on marketing. This is much higher than what the average business spends on marketing. This could indicate that the company’s brand recognition hasn’t really caught on in the market.
So far, the company has managed to raise $2.8 million in funding, which is a notable achievement. Lambs is backed by Science Ventures, a venture capital firm that has a successful track record of portfolio investments. Lambs also has the former president of lululemon, Brett Conrad, as an investor and an advisor. In addition, Lambs is gaining attention on social media, with around 15,100 Instagram followers and more than 86,000 Facebook followers. Its products are generating a positive customer response and have earned an average of 4.8 stars among more than 5,300 reviews.
All in all, Lambs has been showing steady traction from both investors and customers, but its growth over the past six years seems to be rather slow.