Below are revenue multiples for publicly traded consumer tech companies we follow (B2C). Industries and therefore multiples vary widely. Commentary is below. Side note: if you’re looking for data on SaaS multiples, it’s
Traditional marketplace multiples vary widely. Prior to Q3 2018, the sector only had 2 companies and now has 9. The median multiple is now 8.6x, but Etsy is at 16.0x, Fiverr is at 40.7x, and new entrant AirBnB is at 23.6x. Etsy grows at 84% YOY with $1.3bln of revenue, and a solid 24% EBITDA margin. The multiples for these top performers are very high, whereas flatter growth cash generators like Shutterttock and eBay trade at <4x.
Other Outliers. DraftKings trades at 40.4x its $423mm of revenue. DoorDash trades at 22.3x it’s $2.2bln in revenue. Both companies do not generate EBITDA.
Rideshare is bifurcating. Lyft is at 5.0x revenue while Uber somehow is holding strong at 7.3x revenue. We suspect the revenue multiple for both would be higher, but both businesses light cash on fire; Uber’s EBITDA is -$3.7bln while Lyft is at -$1.5bln. It’s hard to envision either company generating cash any time in the near future given their current market share and very high levels of burn.
Gaming. The median revenue multiple of 6.5x is strong. SciPlay, the latest IPO in the space, is an underperformer at 0.2x.
Hardware is consistent. Hardware is steady at 3.9x, and has traded in a tight range historically of 2.0x to 3.8x. Roku is the standout of the group (27x) as it’s growing at a strong 55% YOY. Peloton trades at 18.2x on $2.3bln of revenue. Note that even though Apple doesn’t grow, it trades at 8.3x revenue, in part because of the strong cash flow generation (28% margin) and world class brand.
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