Jeff Horing

Plus I've got R&D, plus I've got support, G&A.

You're not going to make a lot of money.

So those companies tend to be in the 10%, maybe, maybe squeak out 20% margin versus a 100% GDR company will have 50, 60% margins.

If you just thought of multiples of cashflow translated to multiples of revenue, that's going to give you a big delta.

So if I'm willing to pay 15 times cashflow for a given growth rate, that 20% margin business is three times revenues.

A 50% margin business is seven and a half times revenue.

I think the markets more or less eventually will look into that financial model and

Some companies, they're just super efficient in other ways.

So you could still have some of those metrics that I just described being a little bit off, but still get yourself to ultimately you're trying to get the cashflow margins.

That's all that matters is multiples of cashflow and then predictability of that cashflow in a recession.

How good do you feel in whatever existential risk somebody could come in your model and disrupt it?

So those are just the framework that I think most public investors and late stage buyout guys are thinking.

How resilient is that cashflow?

Are you running a core banking system for a bunch of banks?

That's not getting ripped out in a recession.

You don't really care about a recession.

What's the growth rate of that cashflow?

And then what's a reasonable multiple based on that?

And some of that'll be interest rate sensitive.

And then obviously you have a different world once you start to get to 100% growth rates, of which there are very few public company data points, but that's when you start to see wonky multiples.