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Would you mind explaining how you came to that number? I'm intrigued. Genuinely.
by esseph 1y ago
Would you mind explaining how you came to that number? I'm intrigued. Genuinely.
- frabcus 1y agoLooks like the assumption is $100 / year for each user, which with 50k users makes the $5 million ARR. Then you have to pick a finger in the air multiplier for the value of the business. A stockmarket listed SaaS company that isn't over-inflated might be 10x the revenue, so that would be $50 million valuation. Kagi is small, but it must still have good margins. So maybe really it is 5x revenue in value, depends on lots of things! Who selling to, and predictions for long term growth.
- deleted 1y ago[deleted]
- jaggederest 1y agoI assume that their weighted revenue per user is around $10 a month, with a discount for annual subscriptions, and they have 50k users. Edit: And the insane values these days are P/E of 90+, bad businesses are less than 5, so I took a conservative estimate of 10 P/E, but I think a more reasonable number might actually be 40, putting them in the centimillion category for sure.