Morning Report: TransferWise posts quickly expanding revenue and something that looks like profit. Let’s explore.
When the correction inevitably comes, it seems that at least one yet-private unicorn won’t instantly vaporize.
- Fiscal 2016 revenue: £28 million.
- Fiscal 2017 revenue:£67 million (+139 percent).
- On track for “120 million pounds in revenue this year,” according to Bloomberg (+79 percent).
- Fiscal 2017 operating loss of £56,o00.
- Fiscal 2017 EBITDA £2 million.
TransferWise’s growth and now near-profit came at a cost — the firm has raised over $396 million to-date — but likely one that few mind. The firm’s rapid revenue growth and break-even operations are notable for their health, at least as far as we can determine from a few data points.
Sixty-seven million euros, or $88.4 million, is IPO-territory, of course, making TrasnferWise an obvious flotation candidate. However, TransferWise’s total funding tally of nearly $400 million is nearly misleading. The firm raised $280 million of the whole earlier this month, or just around 70 percent.
So TransferWise is incredibly well-capitalized for a private company on the cusp of profit while still comfortably in its growth phase. With that in mind, I’d wager an IPO is a ways off.
Still, a nearly-profitable unicorn!
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