Simon Belanger

They used to grow 20% annually.

Yeah.

So...

I think you're not only getting... You're just getting a revaluation.

The multiple is coming down, which has happened across all software companies.

But this is also a software company that is just not growing as fast as it was.

It's putting in a lot of efforts, and I'll talk about it in a bit, with the freemium model, things like that, to kind of shape up for the future to get that growth back again.

But it's just not growing as fast as it was.

So...

If you exclude the SEMrush acquisition, which is like a SEO-based company, I used to use it quite a bit.

If you look at this chart right here, you can see a clear deceleration of growth, which is obviously going to come with a smaller multiple.

But on that ARR front with the SEMrush acquisition-

That's kind of an SEO-based platform where they help websites kind of increase their Google reach, probably their chat GPT, all that geo type stuff.

ARR shrinks to around 10% if you exclude that acquisition, which you realistically should.

So bear case right now is slowing growth.

So acquisition impacts really shouldn't be factored in until they're fully integrated.

AI first ARR looks to be just over 500 million is tripling on a year over year basis.

So there's definitely a ton of momentum there.

But when you look to the company's total ARR, like it's kind of a drop in the bucket.

Will it continue if it continues to grow at this pace?