Thread regarding SAS Institute layoffs

Earlier in the Forbes article, it states that "SAS’ revenue rose 9% last quarter, roughly in line with Morningstar's prediction that software companies will grow at around 10% per year..."

That's where they got the 10% revenue growth figure -- not a barefaced lie, but a highly optimistic projection.

"We will not IPO until we meet the Rule of 40" could mean "We will never IPO; please buy us."

"IMO he would sell, at the right price, but no one has yet offered that price."

So what's the definition of "the right price"? The amount that Goodnight thinks its worth, or the amount that any buyer calculates its worth to be using standard finanicual metrics on independently audited financial statements? There is clearly a misalignment...most likely the buyer being correct and Goodnight being wrong. One can only assume thats what happened with Broadcom, assuming any indecently audited financial statements even existed!

"Goodnight wants to meet the Rule of 40, a common software company benchmark in which revenue growth rate and profit margin sum to 40... with both components sitting at around 10%, Goodnight says SAS isn’t even halfway there."

Well that's a barefaced lie from Goodnight. The last time SAS had 10% Revenue growth was probably 20 years ago!

Achieving rule of 40 with zero or negative Revenue growth means lifting margins to 40%+. Only way to do that would be by laying off at least 75% of the workforce. Good luck to all remaining employees, its only a matter of time.

"SAS has suddenly transformed itself into an AI company. Who knew?!!"

Article in NYT seems relevant to the discussion:

I Helped Run Lululemon. Companies Need to Stop Kidding Themselves About A.I.

https://example.com/393wkv7c

I think you mean this thread: https://www.thelayoff.com/t/1krtvcaar

"Believing it’s the best way to sell some of his stake without needing to sell SAS for parts, Goodnight still wants an IPO. But five years after SAS first said it was preparing to go public, the window has narrowed...

The numbers also need work. Before hitting the roadshow, Goodnight wants to meet the Rule of 40, a common software company benchmark in which revenue growth rate and profit margin sum to 40... with both components sitting at around 10%, Goodnight says SAS isn’t even halfway there.

For CFO Matt Parson, it’s optionality that’s the key here... In case an IPO isn’t possible, Parson thus wants to prepare the firm for other solutions: an acquisition or outside investment."

@jq Executives never say the “I” word anymore after years of including in every quarterly update. A previous thread references an article where CFO basically said no IPO soon based on the numbers. We’re waaaaayyyyy off. He outright said that sale of the company was not off the table.

Noticeably absent from the video was any questioning about IPO and a reason for the delay. Did I miss something? Perhaps there was an agreement about IPO being off-limits.

Related. I’ve heard that the marketing through innovates tells a compelling story. Record low customer/ external SAS attendance customer rates..

@ep no, BH, like birds, is not real.

And that 50 years video. Is BH for real?

@OP

I read it. Seems like a reasonable take on a lot of things. I've always thought of Goodnight as one of the five "good" emperors, and it will be a sad day for SAS when he dies.

Yea all the new articles lately seem to be poised and ready for a sale.

It's a good marketing video. JHG made sure to mention his many financial, pharmaceutical, and other customers who provide recurring revenue. And SAS is doing enough AI to check that box, which is absolutely necessary to sell a company in this market.

IMO he would sell, at the right price, but no one has yet offered that price.

SAS has suddenly transformed itself into an AI company. Who knew?!!