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Sorry, but the first thing that comes to my mind when I read the headline is that we are in another economic bubble with valuations like this.
by tmaly 8y ago
Sorry, but the first thing that comes to my mind when I read the headline is that we are in another economic bubble with valuations like this.
- throwawaymath 8y agoIs this because of how you feel about PagerDuty in particular or...?
- techntoke 8y agoWe are, but everyone is still in denial.
- debaserab2 8y agoI remember when I first ran across PagerDuty I thought to myself, "wait, I think at my last job we just had a couple of perl scripts do that..."
- tintor 8y agoWhen Dropbox was announced for the first time there was a similar comment. :)
- rosser 8y agoAnd what happens when the box those Perl scripts live on goes down, or loses connectivity?
- stonogo 8y agoThe same thing that happens when PagerDuty's AWS availability zone goes down or loses connectivity. Exactly like it did in June. PagerDuty is not magical.
- rosser 8y agoI don't believe I said, or implied, it was. I also don't think it's particularly apples-to-apples to compare a box with a couple NIH Perl scripts and a service with $100mm+ in annual revenues for whom that's their sole job. I promise you, they aren't just in a single AZ.
- stonogo 8y agoNo, what you did was infer "a couple perl scripts" meant "a box", as though it's not possible to geodistribute perl scripts. The entire point of the post you replied to was expressing amazement that this task could even warrant someone's entire job, because in many, many IT departments around the world, monitoring is both taken seriously and not nearly as expensive as PagerDuty. It's a valid opinion, and your faux-Socratic response came off as needlessly condescending, that's all. And if you read June's outage report, they are in multiple AZs... and it didn't help.
- nodesocket 8y agoYou had a couple of perl scripts that integrate with 3rd parties (Slack, Pingdom, etc), manages complex on-call schedules, make phone calls, send SMSes, handles retries, and is fault tolerant across providers? That's some amazing perl skills. :-)
- debaserab2 8y agoNo, it didn't do all those things. All it did was hook into nagios and alert the IT pager. That's all we ever needed it to do.
- pauldix 8y agoThey passed $100M in revenue. Assuming their growth and other numbers are good, this isn't crazy at all. The only thing that is different is that this was a private funding rather than an IPO. Used to be that companies would go public by the time they got here.
- xchaotic 8y agoIf they're really having 100MM recurring revenue, couldn't they just borrow money from the bank without losing equity?
- pauldix 8y agoArticle says that it's for potential acquisitions. I'm not a banker, but I assume they don't make loans for those kinds of operations. Also, they charge interest. Ultimately, it's a question of what the most effective (cheapest) way to add capital to the balance sheet is. They almost certainly could have raised venture debt (they probably already have an agreement in place), but this was probably deemed a more cost effective way to add capital.
- bradleyjg 8y ago> I'm not a banker, but I assume they don't make loans for those kinds of operations. Generally not banks per se, but bondholders definitely do. That’s PE’s entire business model.
- indigodaddy 8y agoMaybe they can buy Atlassian now.
- daniel_iversen 8y agoExcept Atlassians market cap is $20 billion :-)
- rbranson 8y agoA company that is net losing money can't get a loan for 90% of their forward revenue.