Jason M. Lemkin explains how SaaS companies have swung from negative cash flow to 25% positive in five quarters and plan to stay lean. The average public SaaS company now brings in over $300,000 in revenue, marking a permanent shift toward efficiency.
From about -15% to +25% over five quarters.
He cited that the average revenue per public SaaS company is 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 going to, are you going to, how much are you going to loosen the belt? How much you going to go back to through the middle because you got so lean? They're like, well, we're going to 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 tactical 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.
