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It depends if they report revenue gross or net. If it is gross that means they recognize all booked travel as revenue (and earn a margin on top of that) instead
by rs41 6y ago
It depends if they report revenue gross or net. If it is gross that means they recognize all booked travel as revenue (and earn a margin on top of that) instead of just recognizing their fee as revenue. In that case it would be much worse margins than a mature SaaS company.
If I had to guess based on the figure, I would guess gross but I'm not sure.
- nlh 6y agoSorry I should have clarified -- according to Wikipedia, they had $1.5 billion in actual net revenue by processing $23 billion in transaction volume (aka GMV).