The Most Profitable Software Company in Q1 2024 by @ttunguz (2024)

The Most Profitable Software Company in Q1 2024 by @ttunguz (1)

Ethereum generated $370m in profit on $825m in revenue for about a 45% net income margin.

The chart above shows both the historical performance & also explains how web3 blockchains like Ethereum generate revenue & profits.

How does Ethereum compare to other software companies?

The Most Profitable Software Company in Q1 2024 by @ttunguz (2)

If Ethereum were to trade on the New York Stock Exchange or the NASDAQ, it would top the net income margin (%) charts, with Microsoft, Adobe and Veeva thereafter.

The Most Profitable Software Company in Q1 2024 by @ttunguz (3)

In terms of aggregate dollars across all publicly traded software companies, the Ethereum would be sixth. Note the profit scale in the chart above is logarithmic.

Ethereum’s market cap is roughly $350b today, which is on par with Salesforce & worth 7 Snowflakes.

CompanyMarket CapMultiple
Ethereum360b1.0x
Salesforce268b1.34x
Snowflake49b7.3x

There are many important caveats here. Ethereum’s historical profitability hasn’t been nearly this strong. The second is Ethereum isn’t organized as a corporation akin to others in this peer set. The third is the Ethereum token is both utility & “equity.” Last, Ethereum trades at 100x revenue compared to 7-17x for Salesforce & Snowflake.

But Ethereum demonstrates the compelling value that web3 blockchains can create.

The Most Profitable Software Company in Q1 2024 by @ttunguz (2024)

FAQs

The Most Profitable Software Company in Q1 2024 by @ttunguz? ›

Ethereum generated $370m in profit on $825m in revenue for about a 45% net income margin.

What are the top 5 software companies by revenue? ›

Top 10 IT Software Companies in the World in 2021 by Revenue

Alphabet Inc, Microsoft Corp, International Business Machines Corp, Oracle Corp, and SAP SE are the top 5 IT software companies in the world in 2021 by revenue.

How much money do software companies make? ›

How much does a software company make a week? Based on our data, average weekly revenue for a software company ranges around $71.4K. As such, you could see monthly revenues of $286K. To know if your software company achieves the weekly profit target, you need to keep track of the total earnings you get per day.

What is the most profitable software company? ›

Forbes Global 2000
RankOrganizationSales (B$)
1Microsoft211
2Google282.11
3Oracle49.9
4Salesforce34.9
41 more rows

What software company makes the most money? ›

#1 Microsoft Corp. (MSFT)
  • Revenue (TTM): $203.08 billion.
  • Net Income (TTM): $69.79 billion.
  • Market Cap: $1.82 trillion.
  • 1-Year Trailing Total Return: -24.61%
  • Exchange: NASDAQ.
Oct 31, 2023

What is highest paying job in software? ›

Top 10 Highest Paid Jobs in IT Sector in 2024
  • Data Scientist.
  • DevOps Engineer.
  • Big Data Engineer.
  • Machine Learning Engineer.
  • AI/ML Architect.
  • IoT Solutions Architect.
  • Cloud Architect.
  • Blockchain Developer.
Jul 10, 2024

Who is the largest software company in the world? ›

Largest software companies by market cap
#NameM. Cap
1Apple 1AAPL$3.450 T
2Microsoft 2MSFT$3.306 T
3Alphabet (Google) 3GOOG$2.257 T
4Oracle 4ORCL$394.39 B
57 more rows

What are the 5 biggest IT companies? ›

Alphabet, Amazon, Apple, Meta, and Microsoft are known as the Big Five tech companies. They were known as GAFAM before Facebook changed its name to Meta in 2021. They are among the most valuable public companies.

Which tech company has the highest revenue? ›

Top publicly traded tech companies by revenue
#NameRevenue
1Amazon 1AMZN$590.74 B
2Apple 2AAPL$381.62 B
3Alphabet (Google) 3GOOG$318.14 B
4Microsoft 4MSFT$236.58 B
57 more rows

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