DECLINING GROWTH

Summary from the TLDR Founders newsletter

Over the past two years, the median next twelve months (NTM) growth rate for cloud software companies has significantly declined from around 25% to 12%, largely due to macroeconomic conditions and a lack of high-growth IPOs. Valuations, typically based on revenue multiples, also reflect this trend, with high-growth companies now having a median multiple of 10.7x, mid-growth at 7.9x, and low-growth at 3.8x, indicating a general slowdown in the sector's growth and valuation metrics.