News for hackers. Stuff that matters.
Re:How Did Snapchat Reach a Rumored $3.5B Valuation? by cpsaltis on Wednesday November 06, 2013 @04:32AM (#6681774)
Assuming an average valuation/yearly revenue ~= 20 it means that for $3.5bn the should make $175m a year. If they have 350m photo shares a day (!!!) this number seems very well within their reach. They can even afford to monetize less aggressively and thus more user-friendly. I think it's one of these cases where numbers are so huge that they work in their favor whatever they do.
Re:How Did Snapchat Reach a Rumored $3.5B Valuation? by seanellis on Wednesday November 06, 2013 @04:40AM (#6681802)
20X revenue would be a really high valuation even for a SaaS business. 6-10X would be more likely in the long run.
Re:How Did Snapchat Reach a Rumored $3.5B Valuation? by carlosrt on Wednesday November 06, 2013 @02:23PM (#6684822)
When Twitter had ~$140M in revenue their price was ~50x revenue.

Source: http://www.quora.com/What-are-revenue-multiples-for-technolo...

Re:How Did Snapchat Reach a Rumored $3.5B Valuation? by cpsaltis on Wednesday November 06, 2013 @05:51AM (#6682023)
The company is very hot right, basically selling expectations thus I think well above 10x. In any case $350m with these kind of numbers still seems very feasible. Won't you agree?