
E61: What does Salesforce's revenue miss mean for SaaS?
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Optimism and Realism in Business Valuation
The success of a company's valuation is often rooted in optimism about achieving high multiples of Annual Recurring Revenue (ARR). However, it is crucial to balance this optimism with a realistic outlook, considering the possibility of lower multiples. As CEOs of venture-backed companies, the primary focus should be on returning shareholder value, and any significant deviation from this goal may warrant a reevaluation of leadership.
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