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About 7x revenues. That's a pretty high multiple, but hopefully they can pull it off. Recent IPOs weren't nearly as aggressive, but of course different industr
by sologoub 10y ago
About 7x revenues. That's a pretty high multiple, but hopefully they can pull it off.
Recent IPOs weren't nearly as aggressive, but of course different industries. Will be interesting to see how investors react to lack of long term customer commitments and instead relying on tech integration stickiness to drive repeat spend.
- elsewhen 10y agoinvestors primarily care about future profits. trailing twelve month revenues are just one of many potential indicators of future profit. a 7x multiple of revenue _is_ very high for a slow or no-growth company, but for a high growth company, it can be very reasonable.
- sologoub 10y agoNot saying it couldn't be, but as of late the overall market seems to be more pessimistic and therefore discounts prospects of future earnings more than usual. That said, I'm no expert.