HoneyBook, a startup final valued in late 2021 at $2.4 billion, advised TechCrunch that it hit $140 million in annualized recurring income (ARR).
This makes HoneyBook one of many few startups with peak-VC-era valuations to report their financials after the market cooled.
Many startups that raised in 2021 and haven’t raised since then stay below stress to generate the income wanted to validate their beforehand inflated valuations, and lots of could not survive for much longer.
However HoneyBook is doing so properly, it sees no cause to nonetheless maintain its income metrics secret, says HoneyBook CEO and co-founder, Oz Alon.
HoneyBook gives enterprise administration software program for impartial service-based entrepreneurs equivalent to photographers, occasion planners, and inside designers. Its final elevate was a $155 million Sequence E from Tiger World Administration about three and a half years in the past.
On condition that HoneyBook continues to be valued at $2.4 billion, the newest ARR determine implies a valuation a number of of about 17 occasions ARR.
Whereas there aren’t any hard-and-fast guidelines for valuing personal corporations, traders say that late-stage pre-AI period software program corporations are typically priced not a lot in another way from their public market comparables. Meritech SaaS Index reveals that corporations rising at 25% or extra a 12 months at the moment are priced at a median of 13 occasions their ARR.
So what might presumably justify the marginally higher-than-average a number of for HoneyBook? One phrase: AI. This week, the corporate launched new AI performance that helps customers determine tips on how to value companies and serve their clients higher.
The corporate claims it’s uniquely positioned to assist entrepreneurs make enterprise choices with AI as a result of it has knowledge on how related small enterprise homeowners value their companies and develop their consumer lists.
HoneyBook’s AI is embedded into its present providing that features a CRM, handles billing and funds, and offers eligible customers entry to the funds for enterprise progress.
Jeff Crowe, senior managing companion at Norwest and a HoneyBook investor, believes the corporate can turbo-charge its enterprise with AI.
“Solopreneurs, like photographers, don’t have the time or the enterprise savvy” to suppose strategically about tips on how to develop their enterprise, Crowe mentioned.
The hope is that the brand new performance will assist HoneyBook’s current customers develop their very own companies, and in consequence, the startup will earn more money from the bigger quantity of transactions it processes.
