4 ms·

Is $500,000 a common benchmark? A couple of quick searches seemed to show $100-300K for tech companies with a $1 billion valuation. My current employer has some

Is $500,000 a common benchmark? A couple of quick searches seemed to show $100-300K for tech companies with a $1 billion valuation. My current employer has something like 315 employees, and while I'm not privy to their financials or our investors projections, the thought of hitting that kind of revenue target is bonkers to me.

runako 10y ago
It really depends on the company. (Although $100k sounds really light as it would be hard to make payroll unless the company's employees are all in a low-cost country.) TL;DR is most successful tech companies at scale make > $300k/employee in revenue. Here's something I saw a while back: http://www.businessinsider.com/top-tech-companies-revenue-per-employee-2015-10/#2-google-1154896-per-employee-11 http://www.businessinsider.com/top-tech-companies-revenue-pe... Also this more recent edition: http://www.businessinsider.com/revenue-per-employee-at-apple-facebook-google-others-2016-2 http://www.businessinsider.com/revenue-per-employee-at-apple... and this: https://www.statista.com/statistics/217489/revenue-per-employee-of-selected-tech-companies/ https://www.statista.com/statistics/217489/revenue-per-emplo...
nostrademons 10y ago
Benchmark for the big-5 is about $1M/employee/year in revenue. FB is about $1.2M, GOOG is just over $1M, AAPL is $1.8M, MSFT is $740K, AMZN is $460K (but recall that they have a large warehouse staff and with their 3rd-party sellers, they only recognize revenue off the fees charged to the seller and not off GMV). That's how they can afford to pay $400K+ total comps, and why they're sucking the atmosphere out of the engineering hiring market. It can vary a lot by industry. A number of recent unicorns are glorified restaurants or retail shops that happen to deliver their product over the web or smartphone. Their revenue/employee numbers are going to be much lower because they don't have any significant proprietary technology to build an economic moat around, and their employees cost less.

runako 10y ago

It really depends on the company. (Although $100k sounds really light as it would be hard to make payroll unless the company's employees are all in a low-cost country.) TL;DR is most successful tech companies at scale make > $300k/employee in revenue. Here's something I saw a while back: http://www.businessinsider.com/top-tech-companies-revenue-per-employee-2015-10/#2-google-1154896-per-employee-11 http://www.businessinsider.com/top-tech-companies-revenue-pe... Also this more recent edition: http://www.businessinsider.com/revenue-per-employee-at-apple-facebook-google-others-2016-2 http://www.businessinsider.com/revenue-per-employee-at-apple... and this: https://www.statista.com/statistics/217489/revenue-per-employee-of-selected-tech-companies/ https://www.statista.com/statistics/217489/revenue-per-emplo...

nostrademons 10y ago

Benchmark for the big-5 is about $1M/employee/year in revenue. FB is about $1.2M, GOOG is just over $1M, AAPL is $1.8M, MSFT is $740K, AMZN is $460K (but recall that they have a large warehouse staff and with their 3rd-party sellers, they only recognize revenue off the fees charged to the seller and not off GMV). That's how they can afford to pay $400K+ total comps, and why they're sucking the atmosphere out of the engineering hiring market. It can vary a lot by industry. A number of recent unicorns are glorified restaurants or retail shops that happen to deliver their product over the web or smartphone. Their revenue/employee numbers are going to be much lower because they don't have any significant proprietary technology to build an economic moat around, and their employees cost less.