What is Trulia.com Worth?

This is a very interesting question since I think Trulia is worth much less today than it was 6 months ago. But, for arguments sake, lets run some numbers on what Trulia could potentially be worth today if someone were to acquire them.

(Note: Theses are obviously guesses based on data gathered from multiple sources. Take it with a grain of salt.)

How many Employees does Trulia have?

According to Trulia, they have 80 employees.

How many unique monthly visitors does Trulia have?

According to Trulia they have 5,000,000 unique users per month.

How many page views per month does Trulia have?

According to Trulia they have 40,000,000 page views per month.

What is the RPM (Revenue per thousand pageviews) for Trulia?

Not every single page is monetized but RPMs can vary by industry. For real estate, RPMs can be anywhere between $2 - $30 RPM. Lets meet halfway and use an RPM of $15.

What does all this mean?

If Trulia has 80 employees at an average annual salary of $76,000 then the average monthly salary expense is $506,667. Lets estimate and add Legal, Marketing, Travel and G&A to this ($152,000) or 30% and we are left with expenses of $658,666 per month.

If Trulia has 40,000,000 pageviews / month.  Divide this by 1,000 and we are left with 40,000.If Trulia receives an RPM of 15 than (40,000 times 15) monthly revenue = $600,000 / month. Total Monthly Expenses ($658,666) - Monthly Revenue ($600,000) = a monthly net loss of $58,666

In this market, a company would be lucky to get 5 - 10x revenue.

If Trulia does around $6 million in revenue this year, and if someone wanted to acquire them in this market, Trulia’s valuation would be somewhere between $30 and $60 million. 

This is a far cry from SeekingAlpha’s estimate of $100 - $150 million they said Trulia could be worth in May of 2008.