<aside> <img src="/icons/calendar_green.svg" alt="/icons/calendar_green.svg" width="40px" /> This October 2023 update reviews our performance from September 2023.
You can expect to see our next update on November 20, 2023, reviewing performance for October 1-31st, 2023.
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<aside> 💡 After 12 months, all historic Investor Updates, Friday Forums, and other inside the company content can be found here:
Inside Levels - Friday Forums and Investor Updates
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https://www.loom.com/share/12884005d3c8419eaf649a62ff57bebd?t=8
<aside> <img src="/icons/circle-dot_green.svg" alt="/icons/circle-dot_green.svg" width="40px" /> Levels Investors & Team –
In September, we saw a 3% increase in new members. However, revenue received from these members dropped by 15%, influenced in part by our experiment with monthly subscriptions as an alternative to annual membership. While the result for September was largely expected, we acknowledge that this marks the second consecutive month we've missed our 10% growth target.
We’ve pushed hard on 10% month over month for new member acquisition over the last few months and we haven’t seen the returns that we’d hoped for. We’re adjusting our strategy to improve contribution margin and decrease burn while we work on delivering a path to non-linear growth. More on this to come in the next couple weeks.
This shift pairs well with major initiatives in our pipeline, as follows.
Within Growth & Marketing, we’ve updated our strategy to pursue new perennial growth channels over ephemeral marketing tactics. We’re going to take a higher-touch sales approach, to facilitate better learning and conversion at the consideration stage. We plan to grow revenue and margins by increasing order value through sales of complementary products (labs, CGMs and bundles) that enhance personalization, extend the value creation over long time periods, and thereby increase retention. We’re going to pair this with a focus on improving efficiency of our marketing spend by reducing investment in areas that are not generating sustainable results.
Within Operations, our team is focused on rolling out the next generation of CGM sensors to our customers**.** In September the team came together in Bozeman to prepare for rollout of the newest sensor offering on the market. The rollout is underway and we expect the majority of this transition to be completed by the end of October. The devices are a significant experience improvement from previous versions for our customers. Additionally, we expect the new sensors to enable improvements in unit costs that will reduce the amount we burn on supplying devices to customers.
Within Engineering and Product, we’re focused on nailing the basics across our core product experience. In September, we enabled ‘bring your own device’ which allows customers who already have sensors to join Levels - the impact exceeded expectations immediately and will be a substantial unlock because it allows us to operate in all 50 states as well as internationally with a pure margin software product. October is an exciting month for this group with the launch of a number of new initiatives, which include Onboarding, Levels Library, Day Data, and Logging v6.
Across the company, we have leaned very hard into talking to our members. Every person on the team has live conversations with members each month where we collect feedback from satisfied members, recently churned members, and potential members in the consideration phase. This continues to be tremendously informative.
We’ve largely maintained the structure of our update and key metrics this month for consistency and comparability of performance. Next month, we’ll adjust to align with our direction and provide additional context on how we’re tracking against our objective of improvement to margin growth. More to come in the next few weeks.
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<aside> <img src="/icons/help-alternate_green.svg" alt="/icons/help-alternate_green.svg" width="40px" /> Asks: If you’re able to help with any of the asks below, we’d really appreciate it:
<aside> ✉️ Direct Mail Space We’re looking for anyone who has experience or provider recommendations in the direct mail space. Please reach out to @Mike Haney ([email protected]) for any recommendations or introductions.
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Table of Contents
| | July 2023 Result | August 2023 Result | September 2023 Result | | --- | --- | --- | --- | | Total Revenue | $1,777,516 | $1,794,110 | $1,741,542 | | Burn Rate | ($602,756) | ($886,275) | ($867,222) | | Runway | 19 months | 18 months | 17 months | | Cash | $19,218,158 | $18,294,802 | $17,410,327 | | Product: Total Memberships | 26,188 | 26,199 | 26,224 | | Product: Active Members (Glucose Users) | 9,167 | 9,242 | 9,420 | | Operations: CGM Orders | 8,642 | 8,369 | 7,983 | | Operations: Support Happiness | 91% | 86% | 87% | | Operations: Net Promoter Score | +42 | +43 | +43 | | Growth: Customer Acquisition Costs, Blended | $173 | $171 | $162 | | Growth: Customer Acquisition Costs, Paid | $248 | $304 | $246 | | Growth: Customer Acquisition Costs, Fully Loaded | $280 | $267 | $231 |
| | August 2023
Result | September 2023
Objective | September 2023
Result | Owner |
| --- | --- | --- | --- | --- |
| New Member Revenue
| $306,638 | $337,302 | $253,229 | @Anonymous
Growth |
| 12-month Retention (Annual Subscriptions)
| 21.8% | 20% | 25.0% | @Cosima
Product |
| Lifetime Value (LTV)
| $257 | $249 | $243 | @Anonymous Growth |
| Customer Acquisition Cost, blended (CAC)
| $171 | $188 | $162 | @Anonymous Growth |
| Lifetime Value/CAC (blended)
| 1.5 | 1.3 | 1.4 | @Anonymous Growth |
| Engagement: Food Logging | 60% | 65% | 57% | @Cosima
Product |
| | September 2023 Result | October 2023 Projection/Goal | Owner | | --- | --- | --- | --- | | New Member Revenue | $253,229 | $278,552 | @Anonymous Growth | | 12-month Retention | 25.0% | 20% | @Cosima Product | | Lifetime Value (LTV) | $243 | $249 | @Anonymous Growth | | Customer Acquisition Cost, blended (CAC) | $162 | $176 | @Anonymous Growth | | Lifetime Value/CAC (blended) | 1.6 | 1.4 | @Anonymous Growth | | Engagement: Food Logging | 57% | 65% | @Cosima Product |