Ray: Sub-60% gross margins make 20% free cash flow structurally impossible
Katie Ray · State of the Cloud 2023 with Bessemer Venture Partners · Sep 20, 2023 · at 12:19
Katie Ray of Bessemer Venture Partners breaks down P&L optimization benchmarks for cloud software companies at SaaStr 2023.
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“Public companies that have less than 60% gross margins find it structurally basically impossible to drive more than 20% free cash flow margins.”
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