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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

Shopify, Canva, Monday and tons of other SaaS leaders less focused on tech and startups had big years. 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. Altimeter: SaaS Growth Has Finally Rebounded. But then in 2023 — it just plummeted.

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

SaaStr

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. The SaaS “Rule of 40” has gained popularity due to its simplicity, requiring only two common financial metrics to be added together. What Is The SaaS “Rule of 40”?

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Pilot: 57% of Venture Startups Will Need to Raise More In 2024

SaaStr

SaaS products and services like Pilot track the finances of 1,000s of SaaS and other startup so they’re an interesting source of hard data. Folks that raised in the Go-Go Times of 2021 in many cases have been able to stretch their cash through 2023. SaaS and Cloud growth overall will remain strong.

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

SaaStr

So is it possible to be too efficient in SaaS and Cloud? Many have used Digital Ocean at the cheaper, simpler version of AWS-Azure-Digital Ocean to get going fast and quickly. ARPU was up +28% from 2022 over 2021, and another 6% the past 12 months on top of that. And if so, maybe that’s Digital Ocean.

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

SaaStr

Many SaaS and Cloud leaders are down more than 50% from their all-time highs. A Covid Hangover in SaaS stocks.’ Amazon AWS, Microsoft Azure and even Google Cloud are on fire, adding insane amounts of revenue this year. The top SaaS and Cloud leaders are even accelerating at $1B in ARR, for goodness sakes!!

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Gartner: SaaS Spending Will Grow Another 40% in Next 2 Years Alone

SaaStr

Just how fast is SaaS and Cloud growing? Cloud software spending grew a stunning 23% in 2021, from $270 billion to $330 billion. Budgets and spend are increasing a stunning 20% a year in SaaS. Yes, we all now know top SaaS leaders have world-class NRR, from 110% to 160%. of all enterprise SaaS spend is going to Slack.

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What to Know About the Software Buying Landscape in 2023: What’s Changed, What’s the Same, and What Your Buyers Want with G2 CMO Amanda Malko (Video)

SaaStr

Despite economic headwinds, SaaS spending continues to grow, with most companies having self-reported increasing or maintaining SaaS spending. G2 track, their proprietary SaaS spend management platform. This includes data from companies on how they utilize SaaS and their spending.