I noticed flexport as a company has $1billion -$2 billion in revenue, not sure what this means? Is this gmv or net revenue after taking its cut? If it has $1-$2 billion why is it still valued at $3.5 billion. What is the potential outlook for the company in the future? How fast is it growing?
Can it reach $30 billion valuation?
#flexport
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Blind is there to help and provide information, just saying blow off wouldn’t help people to make good decisions
Last time their valuation was explained to me, the multiple on revenue was because investors was looking at them compared to other freight companies which has closer to 1.5x, and when they're able to convince investors they're a tech/saas company there will be multiple expansion conparable a tech company's 6-10x multiple.
If it's a value stock then the profit might be less. Many companies have great revenue but less profit (Ex: walmart). The profit margin might be the issue.
And moreover I'm not sure if flexport has 1-2 billion revenue.