Software Companies Finally Had to Care About Profit in 2023
- Wall Street pressure curbs focus on growth at all costs
- Salesforce, Box among those improving their operating margins
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For much of the last decade, software companies just focused on growing as quickly as possible. That changed in 2023. Profit and operating margin became the industry’s watchwords.
As interest rates climbed and corporate technology budgets got cut, hawking computer applications began to look less like an endless well of expansion. Investors grew tired of the growth-at-all-costs mindset that had dominated the software industry since the great financial crisis.