Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Belt Tightening Double Whammy Had an interesting conversation with some colleagues this week that I wanted to share. We were reflecting on the last couple years in the context of today’s belt tightening. In summary, we viewed the “arc” of the last few years as the following: during Covid, the top down mandate was “modernize.” Digital Transformations were running rampant. This also coincided with a period of cheap capital and low rates. The push to modernize quickly combined with the period of cheap capital lead to sloppy processes. There wasn’t always the appropriate amount of oversight and excess and redundancy was built in everywhere. However, today we’re now in a period of belt tightening - companies are specifically looking for optimizations. Had we not gone through 2020-2022 there would still be excess to remove. However, we
Coupa is now a private company. Should you remove it from some of the above analysis, given that it is no longer publicly reporting current financial information?
I’m so glad I found this newsletter. So informative and simple. Love the insights.
Appreciate the update. Suggestion: Might be interesting to compare the effects of stock based compensation somehow. Some companies are heavily diluting, while others maybe not as much.