Illustration of green laptop with a line graph on the screen outlined in blue and part of a blue laptop with a line graph on the screen outlined in orange depicting the software industries Overall, we think revenue and margin expansion are looking favorable for software firms in the coming years: We see total software revenue growing in excess of 11% annually through 2029. Our outlook for the industry centers on three key themes: • Switching costs drive high customer retention. • High upfront investments secure very sticky revenue. • Growth should remain attractive. We share the key tailwinds and headwinds that will steer the industry and an overview of the moatiest companies. The Software Market Should Remain a Robust Area for Growth Software industry revenue growth is derived from existing clients in the form of additional seats and new modules and from new vendors and new business formation. Pricing tends to be lumpy, as software vendors may raise prices by 10% once every three years rather than annually by 2% to 3%. Our bottom-up approach suggests software revenue should grow by more than 10% annually through 2029. Total software revenue is expected to grow more than 10% annually […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
