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SaaS Is Still Slowing Down, Unfortunately: What Q1 2025 Numbers Reveal About the Cloud Software Market

SaaStr

Down nearly 30% YoY from Q1 last year pic.twitter.com/9MLyLe3XXf — Jamin Ball (@jaminball) June 5, 2025 Bottom Line Up Front : The aggregate cloud software market just delivered its worst quarterly performance in years, with net new ARR additions plummeting nearly 30% year-over-year in Q1 2025. billion in Q1 2024.

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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

Q1 ‘25 earnings season for cloud businesses is now behind us. And no, this wasn’t all because of leap year last year (that would only account for a ~3% delta at most) The Hyperscalers (AWS, Azure, Google Cloud) also declined net new adds year over year, but not by as much. Net new ARR added was down 28% from Q1 last year.

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SaaStr on 20VC This Week: Why 40% Cloud Adoption Marks the End of Easy Growth. And Why the AI Budget War is Just Getting Started

SaaStr

Why 40% Cloud Adoption Marks the End of Easy Growth. The 40% Tipping Point : With 40% of workloads now in the cloud, SaaS has hit market maturity. Market Saturation Happens Faster Than Expected : At just 40% cloud adoption, we’re already seeing mature market dynamics.

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Just Announced: SaaStr Annual 2025 Headline Speakers: The CEOs and CXOs of Snowflake, HubSpot, Dropbox, ServiceTitan, Canva, Descript, and 100s More!!

SaaStr

Nw’s the very best time to buy tickets before prices go up Jan 31. Grab 20% OFF tickets here : The post Just Announced: SaaStr Annual 2025 Headline Speakers: The CEOs and CXOs of Snowflake, HubSpot, Dropbox, ServiceTitan, Canva, Descript, and 100s More!! We’re back and BIGGER and better than ever!

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Top 10 Reasons SaaStr Annual 2025 Will Be Better Than Ever!! May 13-15 in SF Bay!

SaaStr

SaaStr Annual has always been the go-to event for SaaS founders, executives, and investors, but 2025 is shaping up to be the best one yet. It’s 50% about the intersection of AI + B2B, 50% about GTM in 2025+, and … 50% about helping you meet the best of the best! With a New, AI Demo Stage from 100+ Top AI Start-Ups!

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Clouded Judgement 12.20.24 - The Fed Bomb

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. 2025 Rate Cut Expectations The Fed’s “Dot Plot” shows where each member expects rates to be each year. The Dot Plot released on Wednesday showed an expectation of 2 rate cuts in 2025. in 2025 (with the projection being 2.2%

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The Top 10 Reasons to Attend 2025 SaaStr Annual, May 13-15 in SF Bay!!

SaaStr

Unparalleled Networking Opportunities SaaStr Annual brings together thousands of SaaS, Cloud and AI executives, founders, VCs, and industry leaders under one roof across our 40+ acre campus, May 13-15 in SF Bay! Many vendors offer special event pricing or extended trials, creating additional value. And the VCs that want to fund them!