Given these conditions, the leaders of software companies increasingly push pricing to the top of their agendas, viewing it as a critical lever to grow efficiently and capture value. In this new era, the software companies that thrive will be those that grow revenue and margin simultaneously. Investors are increasingly pivoting from valuing growth at all costs to focusing instead on efficient growth. The message from the market is clear: top-line growth alone is not enough. In the last year alone, 84 percent of publicly listed software companies saw their valuations drop, and more than a quarter experienced a decline of more than 50 percent. This article is a collaborative effort by Christian Fielitz, Mohit Khanna, Michelle Nguyen, Varshik Nimmagadda, and Paul Roche, representing views from McKinsey’s Technology, Media & Telecommunications Practice.Īfter years of rapid growth, the industry faces economic uncertainty, increased capital costs as interest rates rise, and a still-competitive talent market with accelerating wage growth.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |