We wanted to provide an update on how things are going with RunSignUp prior to our biannual Endurance Registration Report in early April. The good news is that more races, timing companies, running stores and runners continue to recommend us. One of our key stats we follow is the number of races that process more than 3 transactions with us. Our numbers were great for Q1 with 22% growth (on a very large number of races!):
Our bottom line has also faired well, with increased gross margin and lower legal fees resulting in a very solid Q1. We are using this positive momentum to continue to invest – we are adding a new User Interface Developer on April 3 and a new Developer in June to continue to accelerate our technology roadmap.
This growth is impressive given what you may have heard from one of our competitors after 1N3/URun settled their lawsuit with Active in December. 1N3 was our largest customer last year, and their largest quarter is Q1 (a large % of their registrations were in Q1 last year), so it has an impact on our numbers especially in Q1.
The loss of 1N3 impacts our registration count, but financially, we are actually ahead of last year. Gross Profit is how we pay our people and Amazon costs and we are up since 1N3 had a higher discount than the many smaller races that replaced that volume. More importantly, we spent hundreds of thousands of dollars in legal fees supporting 1n3 last year – and that cost is gone. So our net profit is looking very healthy, which is allowing us to do some expansion of our development team. In addition, the 1N3 races had a high amount of customer support with above average chargebacks and end customer requests. This means we have fewer customer service issues to deal with and more time to improve the core offering.
We have also recently received some great news that both the Napa Marathon and the Philadelphia Marathon have selected us as their race management platform. In addition, RaceJoy has been selected by a number of large marathons this year including Pittsburgh, Flying Pig, Ogden, Colfax and Philadelphia. Our mission of bringing advanced technology to the endurance industry continues to accelerate!