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What Are Public SaaS Companies Taken Private At? 7.7x ARR On Average Per SaaSomomics

SaaStr

The prices would be lower today for the latter two I suspect. ARR was the Median acquisition price in a “take private deal” Interestingly, it’s not all that different post-Boom and pre-Boom, as you can see above. What did he find? You might be worth less ? is interesting to see.

AWS 268
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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

This has all resulted in the median stock price declining 5% YTD. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. What’s going on with rates (the 10Y has gone from 3.9% Are forward estimates “de-risked.”

Cloud 177
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The Relationship Between Margins and Acquisition Prices

Tom Tunguz

This is as true for their books business as their infrastructure business, AWS. Over sushi, a friend explained to me that this strategy might also extend to the way the company views acquisitions. Bezos has explicitly stated this strategy and it’s the one that has led to Amazon’s massive success in many different lines of business.

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The Most Common SaaS Sales Potholes and How to Avoid Them with Mark Roberge (Podcast #498 and Video)

SaaStr

Pothole #2 – Increasing Pricing Rate Without a Sustainable Moat. Raising prices might seem like a quick win to grow your revenue, but it’s critical to bear in mind the effect increased prices will have on your sales cycle, close rates, and disruption risk. Sell it to your market for half the price.

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Four Sales Compensation Tactics for Consumption-Based GTM with MongoDB’s SVP of Sales

SaaStr

Then, we moved to a more customer-friendly model with SaaS and subscription-based pricing. What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. The first might be market acquisition. There are still some complexities around SaaS-based approaches.

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Clouded Judgement 6.9.23 - Recap of Consumption Trends in Q1 '23

Clouded Judgement

Very healthy new business (new customer) acquisition. Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

Trends 130
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SaaS companies quickly replacing subscriptions with usage-based pricing

OPEXEngine

Dive Brief: Usage-based pricing has grown 32% this year and now 45% of software-as-a-service (SaaS) companies use it all or in part, up from 34%, an OpenView survey shows. Pricing model growth. Usage-based pricing has been growing since at least 2018, when about a quarter of companies were using it, according to OpenView’s data.