How much revenue does it take to be a billion dollar company?

Techcrunch has a good article on the subject – in essence, emphasizing on quality of revenue. The mantra suggested is recurring revenue, low churn, high LTV and operating leverage.

For consumer companies equally, the notion of high lifetime value, repeat behavior, and margin structure are the key. A CapitalIQ analysis shows a strong correlation of the revenue multiple to (ebitda margins x revenue growth rate).

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