A brief excerpt from Jason M. Lemkin arguing that SaaS/cloud companies increase efficiency by growing revenue faster than headcount. He uses HubSpot as an example: revenue rose 30% while employee count rose 10%, illustrating that outpacing headcount growth with revenue growth increases profitability and efficiency.
Point 3 efficiency viewed differently revenue versus employee count. And we are seeing this all across public SaaS and cloud companies, and we're seeing across startup. Here's the math. How did HubSpot get much more profitable this last year? How did it get more efficient? It's pretty simple, folks. Revenue's up 30%, but employee counts up only 10. Okay. Grow your revenue faster than your headcount. You are going to get more efficient.
