3x revenue for a SaaS business that is probably growing at 100% yoy makes no sense. I have no idea why people continue to cite this. Even public SaaS companies aren't getting valuations so low.
I agree. 8-12x ARR seems to be the standard multiplier for valuation of a SaaS startup. This is also growing ~100% YoY at this scale. That being said, 25x seems very bullish. Even 20x kind of jumps off the page to me. Keep in mind, it's also the SaaS darling in the valley right now, so it's gonna get a bump.
The service is very cheap and easy to replace, so such valuation makes sense actually. Do you really expect Slack to bring in 10x more business than it has now?