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This is the process by which a high growth unprofitable company becomes a lower growth profitable company. It can be ugly but it's a transition that every compa
by hackitup7 4y ago
This is the process by which a high growth unprofitable company becomes a lower growth profitable company. It can be ugly but it's a transition that every company ostensibly needs to make. We're going to see a lot of this as the market turns.
- danpalmer 4y agoI agree that every company will likely slow in growth eventually, but I think the PE playbook is different. It's very clearly sacrificing growth, agility, ability to execute, and future potential, for the highest possible short term gains. I don't think that's something every company needs to go through.
- riskneutral 4y ago> We're going to see a lot of this as the market turns. Not really. We saw a lot of LBO takeovers before the market turned, and Zendesk is one of those (it was planned 6 months ago). LBO activity is expected to slow down now (it already has). What you will likely see a rise in is a lot of companies cutting costs and going into their bunkers. You don't necessarily need to be taken over a PE firm in order to do that.
- schnevets 4y agoZendesk competitor ServiceNow ($88B Mkt cap) has stated their long-term strategy is upselling to massive customers who will use their more mature features (Operations Management, Security Operations, GRC). If ServiceNow is willing to leave crumbs on the table, I could see Zendesk marketing itself as the go-to firm for smaller IT departments.