> It means growth is pretty expensive, but if they ever want to dial back that growth, they can rake in the $. This is the fundamental premise behind SaaS comp

> It means growth is pretty expensive, but if they ever want to dial back that growth, they can rake in the $. This is the fundamental premise behind SaaS companies valuations: http://a16z.com/2015/05/15/a16z-podcast-why-saas-revenue-is-worth-more-than-traditional-software-sales/ http://a16z.com/2015/05/15/a16z-podcast-why-saas-revenue-is-... Excerpt from that podcast paraphrased "NetSuite and SuccessFactors had their most profitable years during the economic downturn in 2008"