software companies
6 statements across 6 episodes · 2 bullish · 1 bearish · 5 people on the record · first statement Jan 15, 2021 by Jeff Lawson · across every show →
Everything said about software companies, oldest first
Jan 15, 2021 positive
Lawson: Top software companies spend 40% to 50% of R&D on internal platforms
“It's not at all uncommon for great software companies to spend upwards of 40, even 50% of their total R&D budget on those platforms. Because those investments are multiplying the investments that you're making in the other 50% of your R&D investments.”
Mar 5, 2022 bearish
Spruill: Ancillary products generate under 5% of revenue at most software giants
“You could look at the largest software companies on the planet that are headquartered right down the street from here, how much of their revenue comes from product A? And how much money and chaos that they still have Decades later, focusing on all these other …”
Dec 6, 2023 positive
Levie: Mature SaaS companies must shift to teen growth and 30%+ margins
“I think we look. Like probably what most companies are gonna have to look like at some point, which is you're probably growing teens. You're probably generating 30 plus percent operating margin. This is sort of the historical norm for software companies, and y…”
Feb 21, 2025 neutral
Choi: Software valuation multiples have zero correlation with revenue size
“Here we have a regression that charts AOR multiples today versus the implied AOR scale of the most recently reported quarter of a 139 different software companies. And I want to draw your attention to the r squared value of this regression... And so we see her…”
Jul 2, 2025 neutral
Levie: Software vendors will increasingly look like professional services firms
“Like, I think we're all going to increasingly look almost like professional services companies, probably to some extent, because you're bringing now solutions to the customer as opposed to just a use our software. Hopefully you have the people to implement it.…”