A Different Kind Of Company …

.. Or A Peek Into The Future?

Interesting read … and I for one doff my cap to anyone that can achieve this. Massive kudos. In the reading, I happened to note three things …

1) Valuation : Over $1 Billion

2) Revenue : $80 Million

3) Total Staff Count : 700

Which means that revenue per staff member is roughly $115K per person Here’s an interesting chart …

This is from Business Insider

I think it is probably true that most of Soti’s staff are not in the West … and is a solid example of what is happening in employment today – and why. But there’s more  … since in that Business Insider article, you can see the IT Sector is delivering $484,000 per employee, so Soti is way ahead of the average – but still have a way to go when you realise that Cognizant are down to $52,000 per employee!

Not only that,  if the average revenue per employee is $52,000 – after  you take out taxes, profits, buildings and all the other costs of doing business, how much is left to actually pay the people?

Two thoughts

I will guess that average salary will be 50% of revenue per employee – and that is being very generous, it is probably lower.

If you are earning $26,00o a year in IT of any kind – I will guess that you are not working in the USA or most of the rest of the Western World.

This is a very different kind of company than most people typically think about …. (Read all about the man who built a $1bn firm in his basement.) … but definitely, a sign of things happening and still to come.

Meanwhile …

… the valuation is based on roughly a 12.5 revenue multiple – that is generous and it is also unclear where that valuation comes from, given that the company is still 100% owned. But that’s another thing.