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I mean, if they think they can get to 1bn ARR reasonably soon and get, say, 30x on the public markets that's already a better outcome (plus they don't have to w
by rattray 2y ago
I mean, if they think they can get to 1bn ARR reasonably soon and get, say, 30x on the public markets that's already a better outcome (plus they don't have to work at Google) -- and given their growth rate, an even better multiple might be expected.
- dilyevsky 2y ago30x arr (not cash flow) is unbelievably high multiple in the current environment
- samspenc 2y agoYeah, if we assume they are at 20% profit margin like FAANG or other tech / finance companies, at $1B ARR, they are making $200M net income per year. At 30-40 PE, they would be valued at $6-8B max. In reality, they are most likely losing money at this point like most startups, might take them a few years to hit profitability. But that doesn't seem to have stopped previous startups from commanding insane valuations, so maybe Wiz is able to do that too.
- rattray 2y agofacepalm – mixed up arr & cashflow as I was going to bed. thank you.
- deleted 2y ago[deleted]