Cubbo: +100% revenue growth in Nov vs. Oct

Dear Cubbo investor,
We hope you’re well. In this update, we’re happy to share the latest company news.

Brian York
4 min readDec 18, 2023
with a couple weeks left in the month, Q4’s revenue is pretty accurate
  1. We will earn ~$8.5MM in revenue this year, up from the $3.9MM we made in 2022. We’re projecting to make $23MM in 2024 and $55MM in 2025.
  2. November’s gross revenue reached $1.5MM and we fulfilled 204K orders (both resulting in ~125% MoM growth vs. October).
  3. November’s EBITDA was $258K and the year to date EBITDA on a consolidated level is expected to be $151K.
  4. After paying the delivery companies, warehouse workers, and rent, our average contribution margin in 2023 is 36%.
  5. Our revenue per order increased to $7.5 from $6.7 year over year, due to growth in our importer and merchant of record services. Continuing to scale up these cross-border logistic services will help us achieve +40% gross margins over time.


Our November month-end cash position was $2,122,858. While we expect to have positive EBITDA this month, cash flow could decrease because of working capital conditions. Since December hasn’t ended yet, we’re using the beginning of cash 2024 with November’s ending cash balance.

$8.5MM to $23MM in revenue with no further investment needed
  1. In 2023, through November, we had a decrease of cash flow of -$682,402. This was mainly driven by investing activities into warehouse capex and the last payment for the acquisition we did in Brazil.
  2. In 2024 we expect to have an increase of cash of $1,048,382, driven by continued order fulfillment growth, and without the need of further outside money from investors.
  3. We’re expecting to get one new 3K square meter warehouse in Q1 2024, in Mexico. This accounts for most of the capex, but we’ll also have ongoing capex investment into our new warehouse we moved into in April, in Brazil.
  4. Most of the tax payment projection is due to the profits generated from our Mexico operation.
  5. Our Days Sales Outstanding (time it takes to collect payments after a service has been made) continues to improve and is under 30 days. We believe that we can achieve a negative cash conversion cycle in Q1 2024.

A Closer Look At Revenue

Share by category: Fulfillment 67%; Pick & Pack / Packing 23%; Storage 6%; IoR 3%; MoR 1%; Others 1%.

  1. Fulfillment is the money we earn from managing the delivery companies. Our gross margin on this in 2023 is 35% and we believe there’s room for modest growth here in the coming years, especially as we scale up operations in Brazil and can capture similar economies of scale as we’ve seen in Mexico.
  2. As we scale up with international brands that want to enter Latin America doing in-country fulfillment, we anticipate that the importer and the merchant of record (IoR and MoR) services will serve as a key growth driver, collectively contributing 16% to total revenue, expected to total $1.4MM in 2024.
  3. In 2024 we’re projecting IoR to increase 194% and MoR to increase more than 9x, which will help us drive up our gross margins closer to 40%.
  4. We’re excited about some other initiatives in the Others category, like Dropshipping Cubbo, which creates a new sales channel for our merchants to offer their product to the Cubbo merchants network in a dropshipping model. In 2023 we earned $43K, and we expect to earn +$200K in 2024.

As we approach the conclusion of a successful year, our enthusiasm is unwavering. We are not only reflecting on our successes but also setting our sights high for the upcoming year. Our ambition is bold yet achievable: to build the largest ecommerce fulfillment network in Latin America.

Please feel free to reach out if you have any questions or need additional information. We value your engagement and feedback.

In closing, we wish you all a wonderful holiday season filled with joy and relaxation. Here’s to a prosperous and successful new year, filled with shared achievements and growth!

Cubbo co-founders Josu, Ignasi, and Brian

We’re publicly sharing our monthly investor updates in 2024 to share our journey of going from $8.5MM to $23MM in revenue.