🧙 Learn the secrets of pricing with Simple Modern & Intelligems
Register Today
Home
How Geologie Increased EBITDA Margin by 18% with Drivepoint

How Geologie Increased EBITDA Margin by 18% with Drivepoint

Learn how Geologie used Drivepoint’s strategic finance models and predictive analytics to chart the fastest path to profitability — ultimately getting the brand ready to fundraise.

ABOUT

Launched in 2018, Geologie is on a mission to simplify an often confusing and inaccessible category: men’s skincare. The brand believes everyone’s skin is one-of-a-kind and deserves a simple, custom, science-backed routine. Users clearly agree. To date, Geologie has sold millions of personalized sets of moisturizers, eye creams, and more.

THE CHALLENGE

Geologie had to find the fastest path to profitability to secure fundraising

Raising capital is always tricky for consumer brands. You need comprehensive metrics, a stand-out product, and (above all) a well-defined financial roadmap. As the team at Geologie geared up to fundraise, they knew demonstrating profitability would be critical to their pitch. The question was: How could the brand achieve profitability as fast as possible?

  • Should they prioritize lowering acquisition costs?
  • Should they focus on increasing repeat purchases vs. subscriptions?
  • Should they go all-in on a new product strategy to increase their average basket size?

In order to make an informed decision, Geologie needed a robust financial solution that could model and compare scenarios into the far future. That’s when they called Drivepoint.

THE SOLUTION

Drivepoint accurately models the impact of countless financial levers

When Geologie onboarded with Drivepoint, they had one goal: Identify a financial lever that would lead to rapid, secure profitability. Thanks to our accurate, predictive analytics and embedded professional services, the brand pulled this off without a hitch.

We kicked off with an effortless integration between our strategic finance platform and Geologie’s business data, ranging from marketing spend to Shopify sales. Next, our team of analysts ran multiple scenarios on Geologie’s financial model and came to three key findings:

  1. Geologie should focus on increasing the average order value (AOV) of first purchases.
  2. If they grew first-purchase AOV by at least 18%, Geologie would see the greatest and most immediate impact.
  3. This change alone would take Geologie from unprofitable to an EBIT margin of over 9%.

Equipped with our insights, all Geologie had to do was follow these three steps, monitor Drivepoint’s real-time forecasts, and watch the results come to them.

THE RESULTS

With Drivepoint’s models, Geologie is now profitable and investor-ready

Since implementing Drivepoint and doubling down on first-purchase AOV, Geologie has seen YoY improvement of 18 percentage points of EBITDA margin.

Partnering with Drivepoint ultimately granted the Geologie team a deeper understanding of their financial levers, a data-backed growth strategy, and a clear roadmap to profitability.

Today, they have additional cash to reinvest in growth and a far stronger pitch to investors when the time is right to raise. Looking ahead, Geologie will continue to grow using Drivepoint’s models and provide millions of customers with personalized skincare.

More customer stories

Today's savviest eCommerce brands choose Drivepoint

Ready to see what you can do with Drivepoint?

Sync your data in 5 minutes and be up and running with a full strategic finance solution in no time.