Dropbox's growth-adjusted EV / NTM Revenue is exceptionally high. Is that correct? It seems it gives us 3% NTM growth. Strange as all.
On a separate note, have you looked into the change between growth and rule of 40 between 2023 and 2024 for tracked companies? I wonder how worse / better the metrics are for relative Revenue Groups. ICONIQ published a report basically showing that enterprise SaaS has taken a hit in terms of growth quite a bit. But that was for H1 2024, and as you say the multiple expansion happened in the past 6 weeks.
Agree that there is now more optimism about software...finally now playing it's role in the AI revolution...which is leading to higher multiples for many software stocks. It is also becoming clear that certain software platforms are pulling ahead of their competitors in terms of market share strength. E.g. SNOW seems to now be the strongest in the data management space. CRWD in cybersecurity. Our challenge is to sift thru all the rising boats to find the best and of course avoid the wannabes. Cheers, Jamin and thank you for all your wonderful writings in 2024. I always learn from your posts each and every week.
Great stuff Jamin!
Dropbox's growth-adjusted EV / NTM Revenue is exceptionally high. Is that correct? It seems it gives us 3% NTM growth. Strange as all.
On a separate note, have you looked into the change between growth and rule of 40 between 2023 and 2024 for tracked companies? I wonder how worse / better the metrics are for relative Revenue Groups. ICONIQ published a report basically showing that enterprise SaaS has taken a hit in terms of growth quite a bit. But that was for H1 2024, and as you say the multiple expansion happened in the past 6 weeks.
Agree that there is now more optimism about software...finally now playing it's role in the AI revolution...which is leading to higher multiples for many software stocks. It is also becoming clear that certain software platforms are pulling ahead of their competitors in terms of market share strength. E.g. SNOW seems to now be the strongest in the data management space. CRWD in cybersecurity. Our challenge is to sift thru all the rising boats to find the best and of course avoid the wannabes. Cheers, Jamin and thank you for all your wonderful writings in 2024. I always learn from your posts each and every week.
Always excellent Jamin. 👏🏻