Quick thoughts.
We're big fans of PillPack.
EBITDA? Back of the envelope based solely on media reports is 2017 EBITDA is a loss of more than $60m.
Revenue - $100m
Gross Profit at 20% margin on pills is $20m
Payroll based on reports of 1,000 employees is $80 million.
Therefore, EBITDA as GP - SGA must be at least a $60 million loss.
PillPack is well-known commodity business. So what did they do right?
Design premium
Proprietary tech stack premium
Tweaked the traditional business model - but remained with the industry framework
Develop licenses in 50 states
Therefore, pure strategic sale. Yeah!
Reported total investment of $118m. Founded in 2013.
$1b exit.
You can calculate the rate of return.
Go Amazon!