Re:Twilio opens trading at $23.99 per share
by ProfChronos on Thursday June 23, 2016 @06:56PM
(#11964904)
Based on IPO stock price ($15) and market cap ($1.23Bn) and Twilio's revenue run rate around $150M, so that's x8.2 for Revenue and x20.5 for EBITDA (40% margin seems reasonable in the telcos industry). Pretty strong figures - AT&T trades at 5xEBITDA - but not excessive. They might have chosen the bear/base case for the IPO pricing given i) the IPOs of tech companies that got delayed over the last months ii) their unique situation as a pure API player - they're the only one out there with that positioning
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Re:Twilio opens trading at $23.99 per share
by mbesto on Thursday June 23, 2016 @07:47PM
(#11965160)
> and x20.5 for EBITDA (40% margin seems reasonable in the telcos industry)
There EBITDA appears to be negative. 40% margin is "Gross margin" and is certainly not a valid EBITDA figure.
Re:Twilio opens trading at $23.99 per share
by ProfChronos on Friday June 24, 2016 @10:54AM
(#11970223)
40% is a valid EBITDA margin for telcos. Twilio is indeed slightly negative in terms of adjusted EBITDA (around -5%) but market cap of tech companies is usually rather based on NTM EBITDA or industry average EBITDA - see prospectus of IPOs
> market cap of tech companies is usually rather based on NTM EBITDA
This is almost entirely false.
> 40% is a valid EBITDA margin for telcos
Uh what? I didn't state that 40% wasn't valid. I simply stated that gross margin != EBITDA.