Jason M. Lemkin on how SaaS companies are building back leaner. One firm swung from negative 15 to positive 25 free cash flow in five quarters. The question now: will the industry stay efficient, or slip back to old habits.
Five quarters.
Over $300,000.
Again, they went from something like negative 15 free cash flow to positive 25 in five quarters. And I asked Iran, you know, are you gonna. Are you gonna. How much are you gonna loosen the belt? How much you gonna go back to through the middle because you got so lean? They're like, well, we're gonna do everything we can not to. We're going to stay in an efficient world. And I think that is the biggest theme. I think the most important tactical takeaway, and this is just my data, in my opinion, I think the most important tactile takeaways, I think we're past that low of earlier this year. A lot of data points to it. It points to it in terms of revenue growth, it points to in terms of hiring, it points in terms of app layoffs. But the meta question is, what world are we going back to? How efficient a world are you going back to? And I just read a summary last night that for the first time in many, many, many years, the average revenue per public SaaS company is over $300,000.
