TORONTO, March 19, 2013 /PRNewswire/ — Foosball and free food still exist but long gone are the days of mindless spending and large losses. The post-bubble era is seeing dramatic increases in productivity for software companies. It seems as though the software industry is rapidly maturing.
A study released this month by Material Minds ) shows that:
Average revenue per employee has increased to $287,000 from $195,000 in 2003.
Average net income per employee is now $3,700 (which sounds anemic but represents huge improvement over the average net loss of $61,600 per employee back in 2003.)
62% of the companies are now profitable versus only 46% back in 2003.
The average market cap per employee increased from $600,000 to $1,129,000.
"The decline in venture capital and public market funding forced companies to focus on productivity," says Charles Plant, CEO of Material Minds. "Many firms were also able to turn high growth ideas into profitable business models as they figured out their value propositions."
The industry as a whole has also expanded. Material Minds looked at annual financial results released in the last 12 months for 284 publicly traded software companies in North America, comparing them with a similar study done in 2004 of 342 public North American Software companies.
Total revenue increased by 316% from $113 billion to $470 billion.
The total number of employees increased by 248% from 447 thousand to 1.6 million.
Market value of these firms increased 163% to $1.7 trillion.
And best of all, total net income increased by 477% to $75 billion.
You can get a full copy of the report at:
About Material Minds
Material Minds ) helps new economy companies and teams to improve Return on People. We provide innovative organizational development and leadership development programs that deliver measurable results.
Contact
Charles Plant
416 458 4850