10/09/2019
Are software companies valued based on profitability? If that’s not the case, do you think they will be in the near future? I ask this because I’ve heard of various companies receiving massive valuations without ever reaching profitability.
John Richards's answer: Valuations for software companies are valued more often due to their growth trajectory because ones being bought or having a value are growing rapidly. Their future potential is perceived as so great that today’s profitability is not as much a concern because profits will ....