2% profit margin is much better than no- or negative-percent.
“In 2017, we will exit our Annualized Recurring Revenue (ARR) between $24.5 — $25.5M, a growth of 52%, up from 46% growth the previous year. Our gross margin for the recurring business is 88%, and will increase in coming years. In 2017, we will turn our first profit with $603K EBITDA and generate $2.7M cash from operations.”
Original source: WSO2: Our 2017 Results and 2018 Plan
The San Francisco-headquartered business revealed it pulled in $187.7m last year, up 170 per cent from its $110.3m in revenue in 2015. Gross profits were just over $138m from $78m, and net losses decreased to a piddling $49.6m, down from $65.4m the year before.
Another take from Barb Darrow, inc.:
Mulesoft has raised $1.5 billion in venture funding from such backers as Lightspeed Venture Partners, Hummer Winblad, and New Enterprise Associates.
Man, that’s a lot of money poured into it since 2006 – “G round.”
Once again, the key metric of new software license sales was off—falling 19% to $1.35 billion compared to last year, and missing analysts’ expectations of $1.44 billion.
On the other hand:
“Our cloud revenue will be larger than our new software license revenue next fiscal year, when the transition will be largely complete.”
“Our cloud applications goal is to be the world largest and most profitable SaaS company. We are growing our cloud business much faster than Salesforce.com, and we can beat them to the $10 billion mark, but it’s going to be close,” Ellison told analysts on the call.
Database-as-a-service, which basically runs a company’s database on a third party’s cloud, is a fast-growing category for Oracle, according to the company. In fact, Oracle co-CEO Mark Hurd said that business was up 700% year over year, hitting $100 million in quarterly revenue.
Source: Oracle’s Cloud Business Has Yet to Surpass Its Falling License Sales
When you buy Amazon stock (the main currency with which Amazon employees are paid, incidentally), you are buying a bet that he can convert a huge portion of all commerce to flow through the Amazon machine.
I have to admit, I didn’t really read that closely, but there you go.
How Amazon financials work