Urban Ladder expects $200 million in revenue by mid next year

Online furniture retailer Urban Ladder expects to break even on an operational basis when its revenue reaches $200 million, which may happen by the middle of next year. "Once we get to a $150-200-million net revenue range by middle of next year, we will focus on getting our contribution margin to the 25% zone," said Ashish Goel, CEO of Urban Ladder. Contribution margin is the selling price per unit minus the variable cost per unit. Goel said that contribution margin has to be at least 10 percentage points over marketing costs for most ecommerce businesses to make money or drive profitability. "For the first 18 months of our business, our contribution margins were over our marketing, since we have been pressing on growth (recently). So our marketing spend has increased, but we have that differential under control," said ,Goel.