Also interesting: they do $200,000 in payments a day, which is $73m/yr, from which they generate no revenue. If the merchant fee is 2.9% and wufoo gets a .5% referral fee, that's another $3m/year in revenue, which is still in our $3m-$7m range.
430 karma · joined January 30, 2011
Surveymonkey did $45m in 2009 revenue with 20m monthly uniques which is $2.25 yearly for 1 monthly visitor. Wufoo does about 1.5m in monthly uniques which is about $3.5m/yearly revenue.
On revenue comps, if we assume 5x-10x multiples, the purchase price implies a $3 to $7m/yr.
Based on the $30 plan being most popular, and 10% of users in the most expensive plan, I'm assuming a blended $52/mo or $624/yr per subscriber. With our $3m to $7m revenue range, that implies 5k to 11k paid users. With a 5% conversion from free to paid, that is about 100k to 200k free users. Which implies a 6%-12% visitor to registered user conversion based on their 1.5m visitors/mo. Seems like in the range!
Finally, for returns, PG and Buchheit invested 100k for 10% (mixergy interview), and YC took 7%. So assuming a 20% option pool, and net of the angels, the 3 founder got $22m or about $1.5m/year.
But parties incur costs when processing more data. For e.g., Dodd-Frank mandates that issuers of ABS securities issue loan by loan data that the credit ratings agencies used to crunch. Private parties will now become their own ratings agencies. More disclosure is probably still good on the whole, I'm just pointing out there are costs too.