Reglikedomain industry desk

At Escrow.com’s revenue growth — A look

Firm’s topline is up over 50% in past five years.

Australian firm Freelancer.com has purchased Escrow.com for US $7.5M. This is 6.25x Escrow.com’s 2014 EBITDA.

The transaction reveals, for the first time, Escrow.com’s growth in recent years. The firm’s 2014 revenue was nearly 55% higher than 2010, representing a 9.1% CAGR since then.

2010: $3.269 million
2011: $4.125 million
2012: $4.646 million
2013: $4.798 million
2014: $5.048 million

Keep in mind this only represents Escrow.com’s modest take on each transaction. Last year it handled $265 million in transactions, so its revenue was just under 2% of this. EBITA last year was $1.2 million, showing the cost of providing escrow services. I understand that the firm spends a significant amount of money on compliance and licensing.

81% of Escrow.com’s business includes at least one party from the United States, and 41% of transactions involve two parties in the U.S.

Escrow.com will remain a separate firm based in California.

Also on the wire

Other reporting from the domain desk.