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$5B is a pretty ridiculous valuation for a $140M revenues company.
I agree that it feels pretty cray but it's inline with the market. Sector is hot, it has a trendy + efficient product-driven growth model, they're profitable, and growth looks good. There's a lot to like which gives them a revenue multiple at the high end of the market – which currently puts them right around $5B.
$5B is a pretty ridiculous valuation for a $140M revenues company.
When Slack IPOed, their revenue was around $500 mil and their market cap was $16 billion, IIRC. So Zapier seems pretty inline.
Earlier quoted context omitted.
For some context, some other current P/Es: Google: 35.06 Apple: 32.54 Microsoft: 34.64 PayPal: 68.38 Amazon: 73.10 Shopify: 420.04 Square: 515.13 Tesla: 1,043.84
Those are P/Es, not P/S. If Zapier nets 25% after taxes, it’s valuation is 150x earnings. And Shopify, Square and Tesla’s valuations are even more absurd.
$5B is a pretty ridiculous valuation for a $140M revenues company.
30x revenue multiples are actually not too uncommon, especially for a SaaS firm that appeals to both small & enterprise customers, is already profitable, and has a large addressable market. Here's an article that has a frequency chart based on valuation multiples. Keep in mind that, while it's front-loaded with lower multiples, not all business models have the same potential for revenue growth: https://onstartupexits…
Earlier quoted context omitted.
For some context, some other current P/Es: Google: 35.06 Apple: 32.54 Microsoft: 34.64 PayPal: 68.38 Amazon: 73.10 Shopify: 420.04 Square: 515.13 Tesla: 1,043.84
Those are P/Es, not P/S. If Zapier nets 25% after taxes, it’s valuation is 150x earnings. And Shopify, Square and Tesla’s valuations are even more absurd.
Earlier quoted context omitted.
Those are P/Es, not P/S. If Zapier nets 25% after taxes, it’s valuation is 150x earnings. And Shopify, Square and Tesla’s valuations are even more absurd.
Mentioning these 200-1000 P/E companies, as others do, is such an oddity, because there are 500 other companies with 0 earnings or negative P/E that are worse in that aspect.
Valuations are always determined by the NPV of future earnings, discounted for time and cost of money. Given rising interest rates all of these valuations will get slashed substantially.
It’s a bubble, after the internet bubble it took Amazon 7 years to trade back to its bubble price. Cisco never has.
Earlier quoted context omitted.
What?!?!?! first of all if you only have 100k pageviews a month you're probably not even making $599 from serving ads and second i don't understand what Zapier is supposed to accomplish in your mind? maybe you have been using it in a way I can't think of? from what I think you are talking about: is zapier supposed to like sit between website & like some SSP or DSP? during the bid!?!?! or just to like establish an aud…
> first of all if you only have 100k pageviews a month you're probably not even making $599 from serving ads You're talking about something entirely different from what the parent is.
As a non-technical founder my company pays Zapier thousands of dollars per year. We've automated a lot of tedious, manual tasks that you would typically assign a VA. I think we save some money, but even if it was break even, or more expensive than manual labor, the mental overhead of not managing another person, wondering whether the tedious work was done, and according to specification justifies the cost.
Can you give examples of stuff that Zapier does for you that a VA would do? In my mind Zapier does things that a junior developer or maybe an office admnistrator would do, not an assistant. I feel like there is a small, but significant difference.
I love Zapier and wish them the best. Been using them the past couple years to automate many things in my e-commerce business. That being said, I come from a software background (As many here at HN do), and I recently found "Integromat" and have completely switched over all my Zapier automations to them. Their price point is much cheaper (Zapier was beginning to charge a few hundred a month for me - and now I'm down…