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That's pretty normal for high-growth companies.

Twitter had something like $300M revenues[0] at it's IPO and, based on the opening share price, was valued at $14B[1]. That's 46x.

Still seems crazy high, but seemingly not out of line with other recent tech valuation multipliers. There are some other insights in these comments that seek to better explain the valuation.

[0] http://www.wired.com/2013/10/twitter-files-for-ipo-2/ [1] http://mashable.com/2014/04/16/weibo-ipo/

40x 2013 Revenue. Probably 20x 2014 revenue.