CLOUD VALUATIONS – WINNERS, LOSERS, AND INSIGHTS

Summary from the TLDR Founders newsletter

AppFolio, a property management software company, has seen a significant increase in its valuation multiple since the peak of the 2021 bubble, rising 47 spots in the ranking. On the other hand, Amplitude experienced a massive decline in its valuation, with its revenue multiple plummeting from 38x to 2.7x. The key factors that separate the winners from the losers in terms of valuation are the competitive advantage period (CAP), which refers to the expected duration of a company's ability to generate outsized returns, and the ability to achieve significant profitability.