I suspect the latter more than the former, but we’ll have to scout for more data when Divvy shows up in results after the deal closes that data is a few quarters away. That’s a software-level multiple, implying that the company has either incredibly strong gross margins, or had to pay a multiples-premium to buy the company’s future growth today. Divvy sold for around 25x its current revenue rate. Again, this is a March number annualized. “~$4 billion annualized TPV,” or total payment volume.It also lets us know that the company did no more than $4 million or so in March 2020 revenue. Still having its most recent Q1 month generate a three-figure growth rate is good. So, we can’t be sure that its full Q1 2021 growth was over the 100% mark. “>100% revenue growth YoY,” again calculated by leaning on the company’s March results.That puts Divvy’s March, 2021 revenues at around $8.3 million. “~$100 million annualized revenue,” calculated using the company’s March results multiplied by 12.The following numbers come from the deck on the deal, which you can read here. Next, a cloud-based payment service for SMBs, has agreed to acquire expense management software provider Divvy for 2.5 billion in cash and stocks. So, this afternoon, let’s unpack the deal to gain a better understanding of the huge exit and the value of Divvy’s richly funded competitors. This will not only allow us to better understand the value of the unicorn at exit, but also its competitors, against which we now have a set of metrics to bring to bear. (NYSE:BILL), a San Jose, Calif.-based provider of cloud-based software that simplifies, digitizes, and automates complex back-office financial operations. Luckily for us, released a deck that provides a number of financial metrics relating to its purchase of Divvy. The better-than-anticipated results and the acquisition news combined to boost the value of by more than 13% in after-hours trading. The company’s adjusted loss per share of $0.02 also exceeded expectations, with the street expecting a sharper $0.07 per share deficit. Per, the transaction includes $625 million in cash, with the rest of the consideration coming in the form of stock in Divvy’s new parent company.īill.com also reported its quarterly results today: Its Q1 included revenues of $59.7 million, above expectations of $54.63 million. Divvy’s growth rate tells us that the company did not sell due to performance weakness.
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