03-08-2019, 12:17 PM
'Mrebs' pid='82899' datel Wrote:What do you think our sales multiple will be in 2020 with EPS positive and revs between 300-400, maybe more pending new contracts. As I see it TWLO is near 20X and not profitable yet, so it is possible as the sector heats up and profitability is proven we see multiples higher then 20X?
Well, there are quite a few "if's" in there. I'm not at all sure 2020 revenues will be $300M+. From memory, the company's guidance was $202M, at least in the presentation for investors for the iPass acquisition.
EPS could be positive, from that same presentation the non-GAAP 2020 EPS guidance is $0.52.
Twilio is expected to turn a small profit this year and while it's backward multiple is indeed 20x, it's forward multiple is something like 11, a bit higher on an EV basis as they have quite a bit of debt.