Plenty of non-startup companies trade at 20-100x P/E ratios.
Dropbox is clearly insanely profitable at only 65 employees. Especially because they are running de-duplicated storage on top of highly negotiated AWS pricing (they are likely the biggest AWS customer, and AWS certainly does custom pricing deals for big customers).
And startup P/E ratios should be higher than established companies because you are making a riskier bet for a higher potential payoff.
They could be doing $100 million in revenue (a 4% freemium conversion on their $99/yr plan at 25E6 users) and it wouldn't be crazy at all. Or any number of other configurations.
Dropbox is clearly insanely profitable at only 65 employees. Especially because they are running de-duplicated storage on top of highly negotiated AWS pricing (they are likely the biggest AWS customer, and AWS certainly does custom pricing deals for big customers).
And startup P/E ratios should be higher than established companies because you are making a riskier bet for a higher potential payoff.
They could be doing $100 million in revenue (a 4% freemium conversion on their $99/yr plan at 25E6 users) and it wouldn't be crazy at all. Or any number of other configurations.