You Can't Cut Your Way to Success: How SaaS Companies Can Become Profitable (TSIA World 2023)
Channel: TSIA (Technology & Services Industry Association)
Date: 10/05/2023

With higher interest rates, higher inflation, and slowing demand, tech investors pivoted from rewarding growth at all costs to requiring tech companies to prove they have a viable, profitable business model. The reaction from the industry has been to slash costs. The greatest expense in any tech company is labor. By the first month of 2023, the technology industry had eliminated over 150,000 positions. But is that the winning formula? Can you simply cut your way to success? 

In this opening keynote, TSIA Executive Director and Executive VP Thomas Lah shares TSIA research on three levers SaaS business models can pull to become profitable.
 
TSIA World: Interact, TSIA's business transformation conference, is an immersive learning and networking experience offered in-person in Orlando. The event brings together the most innovative minds in technology and services. This year, our theme is the Path to Profitable XaaS.

Learn more about TSIA World conferences: https://bit.ly/451WsTR

The C-Suite Playbook for Profitable SaaS and XaaS: https://bit.ly/3nNzmiL

TSIA website: https://bit.ly/3ptttIa

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Chapters:
00:00-7:25 Introduction by J.B. Wood
7:26-10:09 Declining Company Valuations
10:10-11:12 The Greater Fool Theory of Investing
11:13-12:19 US VC Exit Data
12:20-15:40 Three Profiles in Unhappiness
15:41-17:27 Ways Out
17:28-18:56 SaaS Business Model: Investment Migration
18:57-20:14 Frogs Don’t Die in Boiling Water
20:15-20:43 Iron Triangle of SaaS Profitability
20:44-28:43 Monetizing Services 
28:44-34:16 Migrating Commercials
34:17-38:26 Data-Driven Growth Engines
38:27-38:58 TSIA’s C-Suite Playbook
38:59-42:01 Rule of 35 (Assessing Progress)
42:02-44:28 Revenue Acquisition Costs (RAC)
44:29-45:22 Offer: Free Executive Briefing 
45:23-46:13 TSIA Survey: SaaS Financial Modeling
46:16-47:19 Images to Remember