Searching...
21 results for “profitability focus”
Concept5 mentions across episodes
focus
Concept2 mentions across episodes
profitability
what do I do about that? Well, I still need my revenue growth. That's good. But that margin expansion on average cannot be zero going forward if we wanna have attractive returns. I mean margin expansion in both senses. One is, yes, there's still valu
13:56 / 15:20
from transcript13:56 – 15:20
...focused on the top half of the P and L. So we, of course, like every GP, have folks who can help us unlock the margin potential of companies. But it's orders of magnitude harder to bend the curve on revenue than it is to get margin. And we've seen ti
3:47 / 4:55
from transcript3:47 – 4:55
along with the fact that the industry fell in love with underwriting growthier assets, fast growing software businesses, fast growing health care businesses, etcetera. And multiples went up and up and up over time. As you pointed out, I don't think w
13:27 / 15:17
from transcript13:27 – 15:17
which now Vista owns that has a mid eighties GDR, but it's CAC is three months, which is a very low number in the world of CAC. So you can make a 30% margin business if it's an infinitely sized market with a relatively low CAC. There's an exception t
1:08:56 / 1:10:18
from transcript1:08:56 – 1:10:18
The way management thinks about margins, they look at the op margin of the business. So if you just go from that, they've generated about 6 and a half billion of revenues on an annual basis, 26% EBIT margins on a consolidated basis for the company. T
27:46 / 28:55
from transcript27:46 – 28:55
Given the competitive advantages, given the demonstrable success across these verticals, which are all very nascent, given the arguments we've made around the sort of the limited reduction in revenue per account, either from NIM sensitivity, which wi
36:44 / 37:47
from transcript36:44 – 37:47
in some way, shape, or form. I treat finances kinda like a cons or revenue growth is almost like a constraint on the business, whereas, like, we need to go pretty quick, but, like, we will sacrifice it for more adult like, again, mentally, it's like,
53:55 / 55:01
from transcript53:55 – 55:01
Hearing that in terms of reaching more normalized levels and then marrying it into what you mentioned before in terms of the growth opportunities, is that 115% level an ideal threshold for them to be meeting at least near term? I think over time, mig
44:06 / 45:30
from transcript44:06 – 45:30
some seems like there's been some inflection, but is there inherent operating leverage in the business? How do you frame that or think about that as an investor? And if you wanna put some numbers to help explain or contextualize, that's helpful. For
47:53 / 49:08
from transcript47:53 – 49:08
and multiples went up and up and up over time. As you pointed out, I don't think we're in that environment anymore. There's certainly, in some cases, opportunities for multiples to go up with certain assets, but I don't think the industry can bet tha
48:28 / 50:07
from transcript48:28 – 50:07
All the cash flow can't go into customer acquisition and customer success or wherever it's been going that's caused a lot of these businesses that have grown real fast to not grow margins or even have margins shrink over time. So getting back to and
49:17 / 50:48
from transcript49:17 – 50:48
“The two metrics that actually matter when pitching investors”
revenue, which makes total sense, but it can can be complicated. Like, if you talk to any investor and you just, show revenue and it's going in any direction that is not up, that person will most like
20:10 / 20:44
tactical advice20:10 – 20:44
If you cycle through the p and l today at a billion dollars or so of revenue, that's generating nearly 900,000,000 in gross profit and about a $145,000,000 of EBITDA. On a free cash flow basis, they're generating about $300,000,000 of free cash flow.
58:29 / 59:40
from transcript58:29 – 59:40
Taking it down to gross margins and operating margins, where do those typically hover, and how much cyclicality is there? Longer term, they target 15% top line and constant currency and 40% incrementals, and then they layer on capital allocation from
34:25 / 35:36
from transcript34:25 – 35:36
...on and think about and talk to them about because if anything changes there, it's not something you can ignore.
50:18 / 51:26
from transcript50:18 – 51:26
...focused on that than we did, you know, in the previous generation. And so what makes companies like Yammer so special? Again, this is one of Sarah's deals. One, heavily organic customer acquisition,
27:40 / 28:45
from transcript27:40 – 28:45
How do you think about how that should evolve over time, the mix in quality as it relates to the evolution of their customer base, which you just mentioned? And then the second question related to that, when you see a business that's as significant a
21:42 / 22:52
from transcript21:42 – 22:52
But how would you think about that margin flowing down into earnings, free cash flow, and just some of the capital allocation framework in terms of how they think about it? You mentioned the reinvestment into the business. That can happen a few diffe
58:31 / 59:46
from transcript58:31 – 59:46
Commerce revenue growth has been underpinned by very healthy double digit growth in the number of items sold, the rising share of first party sales, and also the take rate expansion from advertising and NBOs net shipping fees that we talked about. An
55:10 / 56:37
from transcript55:10 – 56:37
Have a podcast?
Run your podcast through Clypt
Get ranked clips, hooks, and ready-to-post copy from your own episodes. Free to try.