In The Trenches cover image

The Private Equity Perspective on Acquiring, Operating, and Selling Software Companies

In The Trenches

00:00

The Tradeoff Between Revenue Growth and Profitability

The rule of 40 generally says if you're growing revenue at 40%, it's more acceptable that EBITDA is neutral because growth is expensive. Of the two variables, Jordan, do you put a higher weighting on one versus the other? It depends. In extreme framing, there are lots of investors in this world. I think this is a modern phenomenon. Throughout capitalism, making money was a good thing.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app