HoneyBook, a startup final valued in late 2021 at $2.4 billion, instructed 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 underneath strain 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 nicely, it sees no purpose to nonetheless maintain its income metrics secret, says HoneyBook CEO and co-founder, Oz Alon.
HoneyBook provides enterprise administration software program for unbiased service-based entrepreneurs akin to photographers, occasion planners, and inside designers. Its final increase was a $155 million Collection E from Tiger World Administration about three and a half years in the past.
Provided that HoneyBook continues to be valued at $2.4 billion, the most recent ARR determine implies a valuation a number of of about 17 instances ARR.
Whereas there are not any hard-and-fast guidelines for valuing non-public corporations, buyers say that late-stage pre-AI period software program corporations are usually priced not a lot in a different 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 instances their ARR.
So what may probably 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 resolve the best way to value providers and serve their prospects higher.
The corporate claims it’s uniquely positioned to assist entrepreneurs make enterprise selections with AI as a result of it has information on how related small enterprise homeowners value their providers and develop their shopper lists.
HoneyBook’s AI is embedded into its present providing that features a CRM, handles billing and funds, and provides eligible customers entry to the funds for enterprise development.
Jeff Crowe, senior managing associate 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 assume strategically about the best way 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 consequently, the startup will make more cash from the bigger quantity of transactions it processes.