Software's Biggest Winners & Losers: Lessons from Valuation Changes Over the Past Year

The article analyzes relative valuation multiple changes across public cloud and software companies over the past year, identifying companies that gained or lost revenue multiple rankings and examining the underlying drivers. Key winners like Wix and Guidewire improved by growing revenue while simultaneously increasing FCF margins, while losers like Bill.com suffered from massive multiple compression despite their historical dominance. The analysis reveals that investors are rewarding revenue growth paired with operational efficiency and FCF positivity, particularly for companies that previously burned significant cash.