Hello, tech enthusiasts! Let’s dive into an exciting story in the world of startups.

HoneyBook, a company that once reached a valuation of $2.4 billion in late 2021, has announced a remarkable achievement: they’ve hit an annualized recurring revenue (ARR) of $140 million. This milestone places HoneyBook among a select group of startups that successfully report financials even after the market’s decline.

In a landscape where many startups are scrambling to justify their inflated valuations, HoneyBook stands out. Its CEO and co-founder, Oz Alon, believes there’s no reason to keep such encouraging revenue metrics under wraps. The platform offers powerful business management software tailored for independent entrepreneurs, including photographers and event planners.

Having last raised $155 million in a Series E funding round around three and a half years ago, HoneyBook’s enduring valuation suggests they continue to capture investor confidence. With their ARR boasting an impressive multiple of around 17 times, they certainly create intrigue in the market.

While there are no set rules for valuing private companies, established metrics suggest that software companies demonstrating growth of 25% or more annually tend to command median prices of around 13 times their ARR. So, what fuels HoneyBook’s higher valuation?

The answer lies in their recent focus on AI. The company has rolled out new AI functionalities aimed at enhancing service pricing and customer interaction. They harness valuable data on how similar entrepreneurs price services, which positions them as a unique ally for those navigating business decisions.

Jeff Crowe, a senior partner at Norwest and HoneyBook investor, believes this innovation could turn the tide for many solopreneurs who may lack the bandwidth or business acumen to plan strategically. The aim? To empower users to grow and, in turn, bolster HoneyBook’s revenue through elevated transaction volumes.