Valuation: Profits vs. Growth Multiples

In this episode of Mostly Growth, the number one podcast in product monetization, we unpack Sequoia’s thesis that the next $1T company will sell outcomes, not software. If selling tools puts you in a race against AI, does selling the work win instead? We break down which industries are most exposed, real-world examples, and what this shift means for moats, pricing, and valuation.

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SPONSORS:

HockeyStack is an AI platform for modern go-to-market teams that unifies sales, marketing, and customer data into a single system of action. With AI agents that prospect accounts, support reps, improve forecasting, and automate what’s already working, HockeyStack helps teams move faster without guessing. Trusted by companies like RingCentral, Outreach, ActiveCampaign, and Fortune 100 teams—learn more at https://www.hockeystack.com

RightRev is an automated revenue recognition platform built for modern pricing models like usage-based pricing, bundles, and mid-cycle upgrades. RightRev lets companies scale monetization without slowing down close or compliance. For RevRec that keeps growth moving, visit https://www.rightrev.com

Tropic is an intelligent spend management solution that consolidates your spend data and processes into one unified offering, enabling insights and decisive action. From spotting hidden optimization opportunities to automating painful procurement workflows and giving you the best market data to turn vendor negotiations in your favor, Tropic combines smart insights with real human expertise to keep you ahead of the curve. Visit https://www.tropicapp.io/mostlymetrics to learn how.

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LINKS: 

Mostly Metrics: https://www.mostlymetrics.com

CJ on LinkedIn: https://www.linkedin.com/in/cj-gustafson-13140948/

Growth Unhinged: https://www.growthunhinged.com/

Kyle on LinkedIn: https://www.linkedin.com/in/kyle-poyar/

Slacker Stuff: https://www.slackerstuff.com/

Ben on LinkedIn: https://www.linkedin.com/in/slackerstuff/

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TIMESTAMPS:

0:00 Preview and Intro

2:36 Sequoia's "Services as Software" report

2:56 The trillion dollar thesis

6:31 Which businesses to target

7:47 Barriers around personal information

9:00 Sponsors — HockeyStack | RightRev | Tropic

12:41 Services still need humans

16:28 Outsourced dev shops

18:17 Sequoia's 2x2 framework

20:40 Management consulting — is McKinsey dead?

23:33 Outsourced call centers

25:36 Law firms

28:37 Accounting firms

28:58 The 10x accountant

30:20 Moats in this space

33:51 How investors will value these companies

36:37 Hot Wheels, Nvidia, Altman brothers

37:32 Credits

#MostlyGrowthPodcast #SaaS #AIAgents #ServicesAsASoftware #ProductMonetization