Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

We're Heading Towards an Efficient World: The Shift in Business Strategies

28 Sept 2023 · 1 min

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Jason M. Lemkin argues SaaS companies are shifting toward efficiency. He points to cash-flow turnarounds of roughly negative 15 to positive 25 in five quarters, and notes average revenue per public SaaS company recently exceeded $300,000.

Questions this video answers

From approximately -15 (negative 15) to +25 (positive 25) in five quarters.

He states the average revenue per public SaaS company is over $300,000.

Chapters

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.