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After tax loss of 3.3 million while having a revenue of 23.5 million Australian Dollars and this company gets this crazy high valuation... Puh it worked for Fac

After tax loss of 3.3 million while having a revenue of 23.5 million Australian Dollars and this company gets this crazy high valuation... Puh it worked for Facebook but they were attracting users like crazy. I don’t know much about canva so maybe someone that knows better can explain to me what makes their product so special?

hoodoof 9y ago
The question is, what would a high quality online design program be worth to a company with a large user base to feed products into? i.e. what is this company worth as an acquisition to Microsoft/Goog etc
nkkollaw 9y ago
It's basically the most promising competitor to Photoshop for creating graphics. Very cool product.
- pavanlimo 9y ago
  I just gave it a go and it didn't really look like a Photoshop replacement, more like a really trimmed version of Photoshop. But for the usecases it serves, it's probably enough. Not an expert in this domain but I'm struggling to see its value at $1B. May be the community is high quality and large?
  - adventured 9y ago
    Some of it surely has to do with the hype around Adobe and their switch to recurring revenue, SaaS style products. It has thrown their stock through the roof. Their stock was essentially dead in the water from 2000 to 2012. $30 to $185 since then. Pull back on their chart to the max time frame, and it's hilarious looking in the spike versus the past. They've been given a ~60 PE ratio, for 15%-20% growth and a rather old-fashion boring product. But it's cloud! Recurring revenue! Throw enough of that together with a stock market bubble and you get a 80% jump in the stock in one year. That's the most plausible argument in favor of Canva getting their crazy valuation, it matches the insanity of Adobe's valuation. It's obvious what happens on the back side of that insanity too.
    - JauntyHatAngle 9y ago
      It does seem like the tech industry has a particular culpability for market valuations not matching actual technical potential. Cloud was the old (but still functional) blockchain when it comes to buzz words.
  - nkkollaw 9y ago
    I'd rather value Canva 1B than many more Snapchat--which does nothing useful (to cite 1 of them). It is definitely not a replacement, but people often use Photoshop for touching up photos and create small banners and stuff like that, which Canva does wonderfully and helps you out with templates.
    - adventured 9y ago
      You don't think a communication device used by hundreds of millions of people should be or potentially be worth billions of dollars? There are few things more important to people than communication. I don't particularly like Snapchat, I do however entirely get why it's valuable. There's room to debate whether it's worth $5 billion or $15 billion, I don't believe there's any room for debate on whether it's worth billions. It has had its market value validated at or above those levels for years now, from VC to public investors. It has maintained a large userbase for years as well. Snap also has 30-40 times the revenue of Canva, which makes the point about how lucrative those hundreds of millions of users can be.
      - fastball 9y ago
        Snapchat isn't a communication device, it's a communication service. Very easy for consumers to replace with the next fad that comes along, as it costs nothing up front and the opportunity cost to switch to a competitor is almost negligible.
      - nkkollaw 9y ago
        I think it's a little crazy how much it's valued. These things come and go. I remember using Yahoo! Messenger...
dav43 9y ago
I used it to see what it was like and I cannot for the life of me see why it has a billion dollar valuation. Its like pixlr.com?
- pedalpete 9y ago
  i hadn't seen pixlr before, it's beautiful. But canva has been making inroads in the enterprise space. Difficult to displace once all your digital assets are managed by a service for multiple designers. Then they provided a print service too. They're executing really well in key areas.
rifung 9y ago
> After tax loss of 3.3 million while having a revenue of 23.5 million Australian Dollars According to my friend who works there, they haven't really been trying to monetize yet so perhaps the investors think that when they try to monetize it will be easy to be profitable? At least when comparing to FB, FB's path to monetization seemed more difficult in my opinion.

hoodoof 9y ago

The question is, what would a high quality online design program be worth to a company with a large user base to feed products into? i.e. what is this company worth as an acquisition to Microsoft/Goog etc

nkkollaw 9y ago

It's basically the most promising competitor to Photoshop for creating graphics. Very cool product.

pavanlimo 9y ago
I just gave it a go and it didn't really look like a Photoshop replacement, more like a really trimmed version of Photoshop. But for the usecases it serves, it's probably enough. Not an expert in this domain but I'm struggling to see its value at $1B. May be the community is high quality and large?
- adventured 9y ago
  Some of it surely has to do with the hype around Adobe and their switch to recurring revenue, SaaS style products. It has thrown their stock through the roof. Their stock was essentially dead in the water from 2000 to 2012. $30 to $185 since then. Pull back on their chart to the max time frame, and it's hilarious looking in the spike versus the past. They've been given a ~60 PE ratio, for 15%-20% growth and a rather old-fashion boring product. But it's cloud! Recurring revenue! Throw enough of that together with a stock market bubble and you get a 80% jump in the stock in one year. That's the most plausible argument in favor of Canva getting their crazy valuation, it matches the insanity of Adobe's valuation. It's obvious what happens on the back side of that insanity too.
  - JauntyHatAngle 9y ago
    It does seem like the tech industry has a particular culpability for market valuations not matching actual technical potential. Cloud was the old (but still functional) blockchain when it comes to buzz words.
- nkkollaw 9y ago
  I'd rather value Canva 1B than many more Snapchat--which does nothing useful (to cite 1 of them). It is definitely not a replacement, but people often use Photoshop for touching up photos and create small banners and stuff like that, which Canva does wonderfully and helps you out with templates.
  - adventured 9y ago
    You don't think a communication device used by hundreds of millions of people should be or potentially be worth billions of dollars? There are few things more important to people than communication. I don't particularly like Snapchat, I do however entirely get why it's valuable. There's room to debate whether it's worth $5 billion or $15 billion, I don't believe there's any room for debate on whether it's worth billions. It has had its market value validated at or above those levels for years now, from VC to public investors. It has maintained a large userbase for years as well. Snap also has 30-40 times the revenue of Canva, which makes the point about how lucrative those hundreds of millions of users can be.
    - fastball 9y ago
      Snapchat isn't a communication device, it's a communication service. Very easy for consumers to replace with the next fad that comes along, as it costs nothing up front and the opportunity cost to switch to a competitor is almost negligible.
    - nkkollaw 9y ago
      I think it's a little crazy how much it's valued. These things come and go. I remember using Yahoo! Messenger...

dav43 9y ago

I used it to see what it was like and I cannot for the life of me see why it has a billion dollar valuation. Its like pixlr.com?

pedalpete 9y ago
i hadn't seen pixlr before, it's beautiful. But canva has been making inroads in the enterprise space. Difficult to displace once all your digital assets are managed by a service for multiple designers. Then they provided a print service too. They're executing really well in key areas.

rifung 9y ago

> After tax loss of 3.3 million while having a revenue of 23.5 million Australian Dollars According to my friend who works there, they haven't really been trying to monetize yet so perhaps the investors think that when they try to monetize it will be easy to be profitable? At least when comparing to FB, FB's path to monetization seemed more difficult in my opinion.