Wow, $200M revenue run rate = $7.5B valuation. That’s a smooth 37.5x revenue valuation. The issue I see is if they try to generate meaningful revenue then someone will launch a competing service and steal all their users.
Just look at the user numbers. 18.5M in 2013 to 23.1M today. That’s less than 5% a year user growth. That shows they’ve already saturated the market. Is the number of software engineers going to dramatically increase? Are they going to suddenly monetize users are a far higher rate to justify the valuation?
I wonder how many of the employees will bail, because they won’t want to work for MSFT.