RE:RE:RE:RE:RE:RE: Check this out ; Well worth it.I suspect we should see some QoQ growth from the core businesses in WE. They are one of the best operators within the Shopify ecosystem so shopify's growth should trickle down to WE's businesses as well. I doubt it will grow at the same rate as SHOP though.
The market is clearly giving management at WE a lot of good will. I think there's an assumption that they will acquire another business within the shopify ecosystem. Given the valuation, their shares give them a lot of leverage to buy something significantly larger than they could have before going public.
My take is the market thinks WE will grow through a combination of trickle down growth of the shopify ecosystem and acquisition. If those two things fail to materialize the share price should go down.
The WeCommerce founder was on Clubhouse a couple of nights ago and a recording of the interview is available on youtube. I will link it below. He is a smart guy and his process seems good.
freeradical1 wrote: Thanks for the response. SHOP is 44x Q3 run rate revenue which is the same basis I used for WE. The YoY revenue growth is 96%.
We cannot easily determine YoY growth with WE as they acquired two companies in the period. If we look at quarterly Q2 to Q3 growth we see the digital busines growing 3.9% and the agency business declining about 4.7%. As Foursixty was acquired in Q2 it is hard to do a straight line comparison in the recurring segment. Operating income increase about 1%.
A nice profitable little business but hard to see the comparison to SHOP or justification for the mutliple. Interested in your thoughts though.