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Clouded Judgement 7.21.23 - Are Software Companies Bad Businesses?

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. When we look at the quarterly trends (below) the data is even better So no, software companies don’t suck. In March 2015 the Morgan Stanley model predicted Box would generate $400m of FCF in 2025. Follow along to stay up to date!

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SaaS: Is B2B Revenue Better than B2C?

FastSpring

In fact, it’s telling that the number of publicly-traded PLG-led companies nearly quadrupled between 2015 and 2020. We talked about one of the biggest trends playing out in the software industry: the convergence of B2B and B2C. For example: Are you making your quoting and invoicing experience as efficient and flexible as possible?

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Clouded Judgement 1.19.24 - The Bar for Going Public

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. ” If we look historically at the period from 2015-2020 (ignoring 2021 IPOs) the rough medians were ~$200m ARR (minimum was $100m ARR), 50% YoY growth, and >120% net retention. Follow along to stay up to date!

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FastSpring Support: 2024 Q1 Updates From Customer Support

FastSpring

Changelog posts from 2015-2020 are available on the archived post located at the bottom of the changelog posts displayed. Maintenance of secure payment processing systems. Analyze Chargeback Trends Regularly review your Chargeback Overview Dashboard in the FastSpring platform to identify trends.

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Clouded Judgement 11.18.22

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. I looked at the period of 2015 - 2020 (right up until Covid, so excluding the Covid bubble) and picked out all of the cloud software companies that at one point in time were trading at >10x NTM revenue. Follow along to stay up to date!

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Clouded Judgement 12.30.22

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. The below chart shows the difference in the top quartile multiple vs bottom quartile multiple going back to 2015 (ie how much bigger the top quartile multiple is than bottom quartile). Follow along to stay up to date! I think this continues in 2023.

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Going beyond the subscription model

Chart Mogul

Subscription businesses are experimenting with hybrid billing models, mixing recurring revenue with one-time payments. In the enterprise software market, the move to a recurring revenue model is effectively complete. By 2020, all new entrants and 80% of historical vendors will offer subscription-based business models”.