More on that shortly, but we wanted to update this article ASAP. Brex announced, in a separate release so we missed it at first, that they have put together a new service called Brex Premium that costs $49 per month. Airbase, in contrast, charges for its software.ĭon’t expect the software arms race between corporate spend startups’ unicorns to lead to more corporate spend startups deriving software revenues in addition to their current income sources each is growing their spend rapidly enough to warrant more time with their foot on the customer growth pedal over working to juice more per-customer revenue in the short-term. Far from its roots in merely offering perk-laden corporate cards to growing companies, Brex and its myriad rivals - including Utah unicorn Divvy, Airbase and others - are building software suites around their core plastic efforts to help companies manage all elements of their spending.Ī growing rift is showing in how, compared to some rivals, the categories’ largest players, including Brex, Divvy and Ramp, forgo charging for their software, content to eat off other revenue sources including interchange. The dueling rounds raised by Brex and Ramp underscore how active their product category is proving to be. According to Crunchbase data, Brex’s mid-2020 Series C valued the company at just over $3.0 billion, including the investment’s $150 million in issued equity. The new capital marks Brex’s largest fundraise to date, and was compiled at a valuation that is more than double its most recent private valuation. I suspect the latter more than the former, but we’ll have to scout for more data when Divvy shows up in results after the deal closes that data is a few quarters away.Mere weeks after rival corporate spend startup Ramp announced that it raised a two-part round worth $115 million at a $1.6 billion valuation, this morning Brex disclosed a $425 million Series D led by Tiger Global. That’s a software-level multiple, implying that the company has either incredibly strong gross margins, or had to pay a multiples-premium to buy the company’s future growth today. Divvy sold for around 25x its current revenue rate. Again, this is a March number annualized. “~$4 billion annualized TPV,” or total payment volume.It also lets us know that the company did no more than $4 million or so in March 2020 revenue. Still having its most recent Q1 month generate a three-figure growth rate is good. So, we can’t be sure that its full Q1 2021 growth was over the 100% mark. “>100% revenue growth YoY,” again calculated by leaning on the company’s March results.That puts Divvy’s March, 2021 revenues at around $8.3 million. “~$100 million annualized revenue,” calculated using the company’s March results multiplied by 12.The following numbers come from the deck on the deal, which you can read here. So, this afternoon, let’s unpack the deal to gain a better understanding of the huge exit and the value of Divvy’s richly funded competitors. This will not only allow us to better understand the value of the unicorn at exit, but also its competitors, against which we now have a set of metrics to bring to bear. Luckily for us, released a deck that provides a number of financial metrics relating to its purchase of Divvy. The better-than-anticipated results and the acquisition news combined to boost the value of by more than 13% in after-hours trading. The company’s adjusted loss per share of $0.02 also exceeded expectations, with the street expecting a sharper $0.07 per share deficit. Per, the transaction includes $625 million in cash, with the rest of the consideration coming in the form of stock in Divvy’s new parent company.īill.com also reported its quarterly results today: Its Q1 included revenues of $59.7 million, above expectations of $54.63 million. Divvy’s growth rate tells us that the company did not sell due to performance weakness.
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