The Android of the creator economy that powered $142M in GMV

Gumroad: The Android of the Creator Economy

Today, we’re launching our report on Gumroad: The Android of the Creator Economy That Powered $142M in GMV.

Read it, and drop a reply to this email to let us know what you think.

Gumroad is an online platform that makes it easy for creators to get started selling digital products. 

Unlike all-in-one tools that (like Apple) focus on building a comprehensive, end-to-end experience, Gumroad intentionally set out to build an interoperable product that does one thing really well—checkout—and can fit into any stack (like Android).

Some key points from our analysis of the data:

  • COVID was a huge tailwind for Gumroad, as an influx of new creators fueled $142M in GMV in 2020, up 94% from $73M in 2019. The company's five-year CAGR is 37%, and it's been profitable since 2017.  

  • Gumroad’s core customer base of creators—those making less than $10,000 per year—is a persistent churn risk, and above that income range, other vertical-specific SaaS platforms can offer more features at a similar or lower cost to Gumroad.

  • Our base case has Gumroad growing at about 40% CAGR for the next ten years amidst continued creator economy expansion. In our bear case, high churn cuts into Gumroad’s primary customer base. In our bull case, Gumroad becomes an integral part of the creator economy and a $1B company.

Check out the full report for our detailed analysis.