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Budgeting 2020

Back to Profitability
Growth > Profit? “Hot” Properties in 2019

WeWork Rework-ed

IPO Postponed due to

YTD = -25% YTD = -49%
revised valuation of 47
bio USD to 15 bio USD

Investors are worried about Analysts predict that Lyft is Investors question whether the
Uber’s path to profitability likely to be burning cash for at business will be successful in
Source: least the next 30 months the long run. Long way from
Source: becoming profitable
Source: The Guardian
Learning from The Giants

Consistent earnings and clear path to profitability is reflected on the stock market performance.
This proves Tech companies can grow without sacrificing profitability
Looking at the OTA Peers

GBV CAGR = 44% GBV CAGR = 22% GBV CAGR = 20%

EBITDA/GBV Margin = 0% EBITDA/GBV Margin = 6% EBITDA/GBV Margin = 2%

7-Year CAGR = 19% 7-Year CAGR = 19% 7-Year CAGR = 15%

Show me The Money: Shifting to Profitability

• In the past few years, VC act

more like PE

• VC are now seeking stronger

business cases, proof of
concepts and paths to
Angel – Series B funding that constructed >50% of the total fund in 2017 plummeted to ~48% in 2018

• According to KPMG, startup

now needs to focus more on
sustaining business rather
than simply on revenue

Source: KPMG

VC are now securing more deals on later stage due to better chance of and clearer path to profitability