Dear SaaStr: Can a SaaS Company Get to 50% Profit Margins?
SaaStr
JUNE 18, 2024
Dear SaaStr: Can a SaaS Company Get to 50% Profit Margins? It’s possible, though it does require a very efficient model. The biggest, most mature software leaders aren’t quite there — but they are close. Adobe is currently at 45% non-GAAP operating margins. Microsoft, also mature and at scale, is also at 45% operating margins: Zoom’s non-GAAP operating margins are 40%, but it’s free cash flow margins are even higher and now exceed 50%: Dropbox is also in the mature, low growth but higher margin
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