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The hard truth is it's not about the legal problem in Zenefits. Zenefits is not growing from last October. ARR remains the same 60M for last 10 months. If the c
by againstgreed 10y ago
The hard truth is it's not about the legal problem in Zenefits. Zenefits is not growing from last October. ARR remains the same 60M for last 10 months. If the company is not growing and it's burning more cash than revenue (way more in Zenefits case), the company should be valued at (cash in hand + ARR) which is 700M. No idea how Zenefits still gets 2B valuation.
- brianwawok 10y ago> If the company is not growing and it's burning more cash than revenue, the company should be valued at (cash in hand + ARR) Is that really true? Maybe if a company had NO HOPE of growing. Zenefits has clearly shown some huge growth. The market is huge. Just being not profitable and not growing for the short term does not mean you are guaranteed dead... just that you are default dead and need to get working on it, which they seem to be. Edit - and if truly a company was never going to grow again, I would value them at something like cash on hand + ((total rev - min expenses to stay afloat) * 3) or something... In your example if someone had ARR of 100 million, min expenses to keep doors open of 300 million, and cash on hand of 1 million.. you would value them at 101 million, I would value them at - 599 million.