Travel marketplaces down to 1.6x. Multiples hit 10.6x in Q2 2021. Booking.com is trading at 5.5x.
Labor intensive space. The only reason we include these companies in our analysis is because investors like Softbank insist on labelling these services businesses as tech co’s. Clearly they’re not, and the lesson here is not to believe the hype. Tech-enabled services is not tech, and the space has poor multiples that fit the business models.
Subscription. B2C subscription is an excellent business model and trades at 4.2x revenue. Match may be the best business model, with 29% margins.
Ecommerce is varied. The sector is the least attractive to investors, with a median revenue multiple of 0.6x. There is a big difference between what we would call premium ecommerce like Coursera, Warby, LegalZoom, and Amazon, versus the rest. Note that the margins in ecommerce are terrible with a median EBITDA margin of -1% and YOY growth of 0%. While we characterize Amazon as ecom, all the value is driven by AWS.