WP Engine Valuation

Here’s an article about WP Engine acquiring Flywheel, which is interesting for this bit.

[…WP Engine’s] current annual recurring revenue is at $132 million, and that Flywheel’s is $18 million, and with a current growth rate of 50%, together the two are on track to make $200 million in ARR by 2020 and likely pass the $1 billion mark for valuation

Consider those numbers – $200MM a year, and a valuation of $1 billion for a company that primarily does WordPress hosting. For perspective, Episerver sold for just over $1.1 billion last year.