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Clouded Judgement 5.31.24 - Software Sentiment Crumbles

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. And the promise of the software business model is as companies mature and go out of growth mode the profits will show up. I’m as excited as ever about the long term cloud software markets. Follow along to stay up to date!

Cloud 177
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The Fall of the Metric Monolith with Battery Ventures Principal Brandon Gleklen (Video)

SaaStr

The Evolution of Language For SaaS Business. In 2022, founders and investors must be ready to pivot strategy at any moment. This flexible mindset creates just the right conditions for embracing evolving business models and new metrics. A general understanding of the SaaS business model grew as the SaaS sector matured.

Metrics 211
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5 Interesting Learnings from Wix at $1.4 Billion in ARR

SaaStr

So this year has been rough on SaaS and Cloud stocks, with multiples down 75% from a year ago and the markets overall down 50% or more. But payments can be low gross margin, and they are for Wix. Business Solutions” including payments has gross margins of only 21%. But the impact hasn’t been even.

Payments 217
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ChurnZero’s 10 Customer Success Leaders to Watch in 2022

ChurnZero

Following the trends from the last few years, we fully expect to see an acceleration in the number of Customer Success leaders who join the ranks of the C-suite over the course of 2022. Here’s our watchlist of Customer Success leaders to follow in 2022. 10 Customer Success Leaders to Watch in 2022. markets at Blackbaud.

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Getting Clarity around COGs Benchmarks in 2022

OPEXEngine

Paired with gross margin (GM), cost of goods (COGs) tells investors in a single glance about the profitability of revenues, SaaS business model purity, and company efficiency. Cloud Operations and Platform Support. Professional Services. Customer Support. 3rd Party Fees.

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Subscription Finance: What is ARR?

FastSpring

We’ve all heard how effective subscriptions can be for growing companies. Perhaps one of the biggest benefits of implementing a subscription model is that it allows software companies to avoid the unpredictability of one-time sales by guaranteeing a steady stream of revenue. What is Annual Recurring Revenue?

Finance 87
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Subscription Finance: What is Annual Recurring Revenue?

FastSpring

We’ve all heard how effective subscriptions can be for growing companies. Perhaps one of the biggest benefits of implementing a subscription model is that it allows software companies to avoid the unpredictability of one-time sales by guaranteeing a steady stream of revenue. What is Annual Recurring Revenue?