Gerstner argues AWS, GCP and Azure enable software companies to reach much higher IPO valuations than Salesforce did.
“Compare where the software companies that are in the pipeline or that have recently gone public, compare those valuations to where Salesforce went public.”
Gerstner cites Snowflake growing free cash flow over 100% annually with Q4 revenue of $1.4B versus $1.2B prior year.
“Snowflake this year will grow its free cash flow at over a 100% a year, next year probably, you know, 80 or 90%. Free cash flow, not just revenue, free cash flow.”