"The only way for software companies to avoid this gross margin compression when incorporating AI features is to raise prices."

Software companies may also end up cutting operating expense from somewhere else.

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Hello Jamin,

First of all, thanks for the great work you're doing :) One question to the figures - for the revenue multiples, why are the hyper growth LTM & NTM rev multiples lower than those for high growth companies? Is that a mistake and if not, what is the reason?

Thanks for the clarification & be well,

Ales @Credo Ventures

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Thanks Jamin, great work. I recently did a deep dive on $ESTC. With the strong they're generating in observability and cybersecurity, risk-reward looks attractive imo. Have a read if you’re interested. Happy to discuss.

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