The numbers behind the story.

A cash-flow business that quietly turned into a broadband & hosting company — then sold at the top.

$13.75M

Run-rate, Q4 1999

$21.2M

Run-rate, Q4 2001 (modelled)

56%

Revenue from business

58 → 65%

Blended gross margin

2.54×

Exit multiple

PSINet

Acquirer, 2000

Q4 1999 — revenue by product line

Quarter total $3,437,329 · dial-up still led, but broadband + hosting were already 46%

Dial-up

$1,829,95453%

Dedicated DSL

$852,43925%

Hosting

$470,42814%

Home DSL

$226,1247%

Other

$58,3842%

The forward model — dial-up vs. broadband & hosting

Dial-up DSL + Hosting· quarterly revenue, Q4 1999 → Q4 2001

Dial-up drifts down from $1.83M to $1.56M a quarter while DSL + hosting more than doubles, from $1.55M to $3.68M — carrying the annual run-rate from $13.75M to $21.2M.