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Clouded Judgement 10.11.24 - Budget Flush

Clouded Judgement

As a result, software vendors often see an uptick in revenue and bookings during these periods. We all know 2020 and 2021 was the year of excessive software buying fueled by ZIRP. Revenue multiples are a shorthand valuation framework. This concept is nothing new and has been going on for a while. Cloudflare is up 17%.

Cloud 167
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The Bar Has Gone Up: The New Era of HyperFunctional SaaS with Jason Lemkin

SaaStr

To set the stage, if you talk to any VC out there today, they will tell you that half of their investments which were growing at epic rates in 2021 are barely growing today. 6 billion of new revenue per year. Google Cloud , Azure, and GitLab, all tied directly or indirectly to AI, are seeing massive acceleration. Does it matter?

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SaaS Rule of 40 Drivers Using KeyBanc’s 2021 SaaS Survey

SaaStr

.” Fortunately, the always excellent KeyBanc Capital Markets (KBCM) 2021 SaaS Survey – which covers over 350 private SaaS companies across various stages and categories – provides a very rich data set to work from. In equation form, Revenue Growth % + Profit Margin % > 40%.

SaaS 317
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We End the Year at All-Time Lows for SaaS Growth. A Buying Signal — Or The End of an Era?

SaaStr

And broader Cloud players had great years too, from MongoDB to Cloudflare to Azure, if not quite as crazy as at the peak of 2021. But then in 2023 — it just plummeted.

Azure 349
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SaaS Multiples Are At a 3+ Year Low. Where It Goes From Here.

SaaStr

Ultimately — revenue multiples. Revenue multiples are how much VCs, investors, and ultimately, an IPO and public markets will value each dollar of revenue. Revenue multiples don’t affect customers, or even revenue itself. That revenue multiples should rise from where they were in 2019.

SaaS 348
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5 Interesting Learnings from Digital Ocean at $700,000,000 in ARR

SaaStr

Many have used Digital Ocean at the cheaper, simpler version of AWS-Azure-Digital Ocean to get going fast and quickly. But it’s raining cash, and earnings per share is growing 22% — faster than revenue. ARPU was up +28% from 2022 over 2021, and another 6% the past 12 months on top of that. Or at least. Or at least.

Scale 291
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When 1% Market Share Shifts Represent $5b of Market Cap

Tom Tunguz

If it wasn’t clear before, AI is the single biggest revenue driver in cloud. Microsoft’s Azure is winning share directly from Amazon. “The number of $100 million-plus Azure deals increased over 80% year-over-year, while the number of $10 million-plus deals more than doubled. of revenue in a year.

Azure 209