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Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

You can read various articles out there which will give you the cursory facts about Airbnb like their overall revenue or profitability or how their business has faired here in 2020 in the COVID environment. But ops & customer support is another 17-20% of revenue and arguably you couldn’t run the business if you took that away.

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Business Valuation: Determining The Worth Of A Company

YoungUpstarts

Simply put, this approach lists a company’s total assets, deducts total liabilities, and determines overall value based on the difference between the two. Also referred to as Book Value . Capitalization Factor – This can be defined as a multiplier used for converting projected future earnings and revenue into present day value.

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How will a buyer value your business?  

Berkonomics

5 to 4 times gross revenues for similar businesses. Free Cash Flow Model: [Email readers, continue here…] This method is often used to value privately held companies with a range of five to eight times the cash available to spend after operating expenses are paid. Here they are, with short explanations of each: 1.

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5 Financial Concepts Every Startup Founder Should Know

The Startup Magazine

Compounding is the ability of an asset to generate earnings that are reinvested in order to generate exponential revenue growth. It has never paid out dividends, and clocks around $200 billion in revenue. When a company acquires another business, they often pay a lot more than the book value of the company.

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So, what if you run out of money?

Berkonomics

Any disruption to the tedium of daily activity from weather, disaster, revenues slowdown or product problems will stress the company infrastructure if there is not a cushion to use during such times. Running out of cash denigrates the very value of a business, reducing greatly any bargaining power with suppliers or acquirers.

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SaaS Nomenclature

VC Adventure

For example when you say sales do you mean booking or revenue? When you talk about revenue do you mean recurring or total? If bookings are the total contract value of everything you sold in a period, how do you normalize for different contract lengths? ARR – current monthly recurring revenue times 12.

.Net 73
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SaaS Nomenclature

VC Adventure

For example when you say sales do you mean booking or revenue? When you talk about revenue do you mean recurring or total? If bookings are the total contract value of everything you sold in a period, how do you normalize for different contract lengths? ARR – current monthly recurring revenue times 12.

.Net 48