Tyler Crowe

But we're going to do a special episode where we're going to answer a listener question that

we realized we couldn't do in a single segment, and we wanted to do a whole show about it.

It's, of course, about SaaS companies or software as a service.

We got a question a couple days ago from Scott Pounders, one of our listeners.

He asks, I own quite a few SaaS companies in my portfolio, SaaS meaning software as a service, that have been hit hard due to the AI revolution.

Some have seen obvious that they can survive with AI.

Could we do an episode which

in which popular SaaS companies are most vulnerable to AI.

I'm looking at particular companies, HubSpot and Constellation Software.

Before we get too deep, I want to set the stage here of SaaS companies, why Scott is so anxious about this particular topic.

I don't want to assume everyone listening knows exactly what's going on with SaaS companies and the disruption that we're seeing with AI.

John, how about you set the stage here for what Scott is asking for everyone else?

As we kind of look about this, as you said, it's starting to show up in companies, like you said, in this ETF.

And for a lot of the part, it's happening mostly on valuation.

We haven't really seen a whole lot of... I would say like...

tangible evidence of it across the entire SaaS universe.

But there are some isolated examples.

And Matt, maybe you could walk through maybe some of the core examples of companies that actually have been disrupted by AI so far.

Let me go in a little bit of a scenario planning situation for investors, and I'll direct this back to you, Matt.

Spelling out the best-case, worst-case scenario here, as you're looking at the space, what is the doom and gloom scenario for SaaS companies, and what is the Pollyanna, hey, this is probably good for us sort of situation?