McGurk: Castlight's trailing revenue did not justify its post-IPO valuation
Jamie McGurk · a16z Podcast | Valuing Today's Fast-Growing Software Companies · Jan 2, 2019 · at 6:16
Jamie McGurk of Andreessen Horowitz explains why traditional financial statement metrics failed to account for high SaaS enterprise valuations, using Castlight's IPO as an example.
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“I think a great example of that is Castlight's recent IPO, where, you know, if you look at what the revenue was, you know, on the income statement on a trailing basis, or even on a forward projected basis, it was fairly modest, and certainly didn't justify the valuation that Castlight achieved post post IPO.”
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