[cpsaltis]

Assuming an average valuation/yearly revenue ~= 20 it means that for $3.5bn the should make $175m a year. If they have 350m photo shares a day (!!!) this number seems very well within their reach. They can even afford to monetize less aggressively and thus more user-friendly. I think it's one of these cases where numbers are so huge that they work in their favor whatever they do.

[seanellis]

20X revenue would be a really high valuation even for a SaaS business. 6-10X would be more likely in the long run.

[carlosrt]

When Twitter had ~$140M in revenue their price was ~50x revenue.

Source: http://www.quora.com/What-are-revenue-multiples-for-technolo...

[cpsaltis]

The company is very hot right, basically selling expectations thus I think well above 10x. In any case $350m with these kind of numbers still seems very feasible. Won't you agree?