Software CEOs staying the course

The CEOs of Canada’s emerging software companies continue to believe in their businesses and do not plan wholesale changes, despite the current economic situation, according to PricewaterhouseCoopers’ annual Report on Emerging Canadian Software Companies: The CEO Perspective.

“Now is the first time our CEOs are facing a serious recession,” said Peter Matutat, partner and emerging company practice leader in Canada. “Yet, it is refreshing that they still believe their business will succeed in this environment. If there is one word that defines Canadian software companies, it is agility.

“By staying the course, it appears many CEOs believe that their product/service offering can carry the company through the current economic situation. Our report shows software CEOs are adapting well. They are growing the top line, pursuing channel partnerships, managing staff and costs, and raising money where they can.”


Highlights of the report include:

 

• 59 per cent of companies surveyed are profitable
• 57 per cent expect sales to increase more than 25 per cent in 2009
• 44 per cent are slowing their growth plans, but 34 per cent have made no changes to operations
• 37 per cent of CEOs surveyed successfully raised capital in the last two years, representing 70 per cent of CEOs who attempted to do so 
• exit plans are being deferred: 81 per cent of CEOs surveyed expect to be acquired, down from 95 per cent last year.