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Episode 411: Jamin Ball on Cloud Earnings

Software Defined Talk

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The Importance of Efficiency in Product Pricing

In 2020, the median free cash flow margin jumped from kind of call it low single digits to 10, 11%. So companies drastically increased on average. Revenue was started growing a lot faster than off X. What ended up happening then in 2021 was two things: One, the market started rewarding growth over efficiency. And we saw margins pinch. We've now seen since then right over Q3 in Q4 2022 is this renewed focus on efficiency.

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