Clouded Judgement: The Poison of Inertia
The article analyzes Block's 40% headcount reduction as a symptom of organizational inertia during major technological shifts, drawing parallels to how incumbents like Sabre failed to capitalize on the internet transition. The author argues that large SaaS companies must forcefully restructure to compete in an AI-driven world where new operational playbooks and cost structures are required.
Metrics in this report
34months
median
SaaS public companies
3.3multiple
median
Overall SaaS market
16.6multiple
median
Top 5 SaaS companies
10.3multiple
median
High growth SaaS (>22% NTM growth)
6.3multiple
median
Mid growth SaaS (15-22% NTM growth)
2.6multiple
median
Low growth SaaS (<15% NTM growth)
20percent
median
SaaS public companies
15percent
median
SaaS public companies
76percent
median
SaaS public companies
15percent
median
SaaS public companies
12percent
median
SaaS public companies
109percent
median
SaaS public companies
-1percent
median
SaaS public companies
24percent
median
SaaS public companies
35percent
median
SaaS public companies