News Summary

• We’re back to talking about profitability.A technology-finance podcast recently talked about software company valuations, the impact of interest rates, and just how profitable well-known tech companies can become.The Exchange explores startups, markets and money.
• And most of them, unfortunately, don’t have a clear path to that.The problem is all of the old, legacy software companies, except Salesforce, have still not gotten to profitability.
• These companies are not going to get out of this cul-de-sac until they figure out true product-market fit, how to eliminate churn, how to drive medium- to long-term profitability.
• He did allow that share-based compensation should also be a factor to consider for tech companies’ profitability.
• The thing with these companies is that even if rates are at 6% or 3% or 2% or 1%, that trick is over.
• So, the ones that went public in the early teens are still sucking wind, losing money.