A CEO’s tactical guide to driving profitable growth

In the software world, a “growth at all costs” mindset has given way to “profitable growth.” Building a venture-backed business was easier when only growth mattered. But now CEOs need to drive both growth and profitability. In the public markets, the companies with the highest growth efficiency (which we define as ARR growth rate + free cash flow margin) command the highest multiples.

In this guide, our colleagues at Bessemer Venture Partners unpack a software profit and loss statement (P&L) into its component parts. Much has been written about how to drive growth, but here, they provide tactical steps for CEOs to follow in order to drive more efficiency and profitability. 

Access the full guide here.