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Software horizons: Profitable growth

September 5, 2022 5-分(読了目安時間)

Balance: The secret component of profitable growth

Industry Sector Enterprise Value to Revenue (EV/R)

Source: CapIQ - Accenture Analysis.

A dramatic shift in market dynamics

Software companies balance against the Rule of 40

Balance limit at +/- 5%. | Source: Accenture analysis.

One industry, four generations


Revenue
growth*

Total Operating
Expenses (% of LTM Rev)

Operational
Efficiency Score **
Classic Software
12%
89%
0.12x
Gen 1 SaaS
26%
108%
0.20x
Gen 2 SaaS
39%
123%
0.24x
Gen 3 SaaS
48%
140%
0.24x

*Last 12 months

** Operational Efficiency Score definition: FY22 Forecasted revenue growth compared to Total Operating Expenses. Scale: (0.00x - 1.00x)

Growth barriers and opportunities

Four keys to unlock profitable growth

About the Authors

Prem Ananthakrishnan

Managing Director, Software & Platforms


Christian Kelly

Managing Director – Software & Platforms


Kevan Yalowitz

Managing Director – Software & Platforms, Global Lead


Stephanie Gorski

Managing Director – Accenture Strategy, Software & Platforms


Paul Johnson

Senior Principal – Accenture Research


Josh Matz

Associate Manager – Research, Software & Platforms