@rodriscoll@jasonlk It’s a good framework. But I wouldn’t say that giving away all FCF to employees instead of shareholders is noise… it fundamentally questions the business model
Is SaaS dead? Here are my takes on the main bear case narratives driving the so-called SaaSpocalypse
(1) Everyone will vibe code their own software.
This is a ridiculous argument. Anthropic just bought Workday. Businesses should focus on what makes their beer taste better.
So, the way out of the SaaSpocalypse is to disrupt yourself. This all makes the @intercom story even more impressive. Great breakdown here from @OnlyCFO https://t.co/x0F19pYsyq
Pre-AI SaaS companies cannot start paying 25% of their revenue on tokens while they need to get GAAP profitable. Going from a revenue multiple to an PE/E (or rather EV/ (SBC adjusted maintainable free cash flow)) is rather painful. Meanwhile, startups' cost of capital is lower.
@OnlyCFO There are also real implications on ability to give out stock grants to employees, which I think is why may go for an entity earlier than 25 FTEs