"SaaSpocalypse" Is Merely a Regression to Normal
6 days ago
- #Valuation
- #Business-Model
- #SaaS
- The recent SaaS sell-off indicates a regression to normalcy rather than an apocalypse, as SaaS businesses are no longer seen as privileged.
- Examples like Duolingo, Salesforce, and Intuit show declining stock prices despite strong financials, suggesting overvaluation rather than business failure.
- The 'Starbucks Test' reveals that SaaS valuations were previously inflated, and current adjustments align them more closely with traditional business valuations.
- SaaS remains a viable business model, with subscription-based services continuing to grow in popularity among consumers.
- The shift in focus from future hype to current financial realities marks a healthier, more sustainable approach to valuing SaaS companies.