Justworks posted an update IPO filing today, providing new financial results and a glimpse into what the company might be worth when it comes to its early days.

For those of you looking for a unique number, using a simple stock count, Justworks could be worth over $ 2 billion at the top of its current range.

The Exchange explores startups, markets, and money.

Read it every morning on TechCrunch + or receive The Exchange newsletter every Saturday.

But that’s hardly enough information. So this morning, The Exchange is going to calculate the company’s various simple and fully diluted valuation marks, run multiples using its most recent quarter results, and compare all the data to the final known private valuation of the company. ‘business.

I had wanted to write a 2022 IPO this morning, discussing Reddit and Via’s upcoming IPOs, but that will have to wait a day. The Justworks S-1 / A folder is here, if you want to follow along. Let’s talk about HR software focused on SMEs!

Recent financial performance of Justworks

If you missed our first look at the history of Justworks, back to you: the company has two main lines of business. The first, called a subscription, is what Justworks charges for access to its service – things like “HR expertise, employment and benefits law compliance services, and other HR-related services.” », According to his file.

The other larger component of its turnover is called “employee benefits and insurance income”. The first has a fairly high margin, the second less.

Here’s how the company did on an aggregate basis during its quarter of November 31, 2021:

Image credits: Justworks S-1 / A repository

As you can see, Justworks showed pretty strong year-over-year growth, and even better gross margin gains. If you are surprised that the resulting gross profit of the business is so small compared to its revenues, remember that Justworks is not just a software company; its revenues include much of that low margin “employee benefits and insurance income” that we noted above.

More simply, the company is in the HR space of SMEs, so its software unlocks customer activity that will not generate SaaS-type margins. Yet the aggregate results of the company detail very limited growth and losses. So we can note that the make up of the company’s revenue is different from what we see from most software companies, while not being rude about it.