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21 results for “profitability focus”
Concept5 mentions across episodes
focus
Concept2 mentions across episodes
profitability
...period. We also focus a lot on growth and on operations optimization. So, we call it GAS, stepping on the GAS, the growth acceleration system, and the way of ops optimization. And we talk about those every week, even as a firm, at our own enterprise.
14:10 / 15:17
from transcript14:10 – 15:17
...on interest coverage. Because at the end of the day, companies can remain insolvent for a long time, but my first boss on Wall Street used to say nothing so focuses the mind like a coupon payment. And that is very true. When you have to make that con
6:45 / 7:47
from transcript6:45 – 7:47
...to focus on profitability so they could build more runway and raise that next round as a smaller business with a sustainable revenue base. So I get why people are hesitant to commit to revenue goals. I think that there are certainly situations where
50:15 / 51:21
from transcript50:15 – 51:21
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
...profitability is actually, I think, a really useful concept, and it's driven a lot of really, I think, good discussions about what that trade off is. But ruthlessly just focusing on one metric is never the right way to run a business, and you always
55:27 / 56:33
from transcript55:27 – 56:33
...What we need to focus on is the next twelve months, the next three months, the next twelve months, next thirty six months. And so as we go into an investment, pretty early on, we wanna know what's the vision and the plan, where are we headed over a f
9:41 / 11:11
from transcript9:41 – 11:11
hurdle on ROIC over the prior five years. What we've actually found more valuable than just the level of the ROIC is the direction. There is a one to one correlation between the direction of the ROIC over a five year period of time and stock performa
14:14 / 15:22
from transcript14:14 – 15:22
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
...growth and profitability. Fine. But not optimize directly towards that. See it as an output in the future. But, like, it's dangerous to do this. Can I ask another one that you said was maybe a little bit of a conventional wisdom that needs to be debu
56:14 / 57:42
from transcript56:14 – 57:42
...that is a bigger focus than it's ever been. I mean, we we've always been pretty gross margin obsessed. It's really what is the difference between a business and not a business, in my opinion. And it's just now more impossible than it's ever been to s
41:58 / 43:03
from transcript41:58 – 43:03
...to expand, the focus on value creation is an absolute must. You've got to drive earnings growth through both cost control and sales acceleration. So it's a revenue game and it's a margin game, and GPs have to play both at speed in order to generate t
13:34 / 14:44
from transcript13:34 – 14:44
If we could populate our top 20 positions with these types of resilient companies, we'd only trim and add around periods of volatility. All the the real absolute dollar value of compounding shows up in the out years, so you just wanna make sure that
18:40 / 19:46
from transcript18:40 – 19:46
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
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
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
...focus on go to market, we need that focus on ROI. I think it's interesting that many of the owners of some of these businesses are more product oriented and tech oriented, and maybe there needs to be a change of view or a pivot. Are there other big t
8:19 / 9:27
from transcript8:19 – 9:27
...and profitability in the software area? I think it's more important than ever. A lot of folks have been talking about balanced growth over the past year. And what that means in practice is being very strategic about the go to market investments to en
5:16 / 6:20
from transcript5:16 – 6:20
than it is to get margin. We'll also explore how this emphasis on revenue growth establishes a clear runway for future buyers. We've over invested in new products, new geographies, new channels to make sure that the next buyer can underwrite very cle
0:44 / 1:50
from transcript0:44 – 1:50
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