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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range.

AI 183
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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

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. If we break this down and look at Azure and AWS independently (graphs below), you’ll see how the AWS “swings” were a lot more volatile.

Cloud 177
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Clouded Judgement 6.9.23 - Recap of Consumption Trends in Q1 '23

Clouded Judgement

Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong. Very healthy new business (new customer) acquisition. Revenue multiples are a shorthand valuation framework. New customer growth seems to be picking up.

Trends 130
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Need an Expert for Your Next Panel, Presentation, or Podcast? Here Are Over 530 of the Top Female Sales Practitioners

Sales Hacker

Senior Vice President, Sales SMB. Sales Manager, SMB New Business Acquisition. Senior Vice President, Strategic Sales & Revenue. Predictable Revenue Inc. VP, SMB Essentials Sales. Amazon Web Services (AWS). Team Lead, North America – Global Marketing Solutions. Laura Mason Hoad. RingCentral.

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Facebook Workplace’s Julien Codorniou on turning companies into communities

Intercom, Inc.

I saw we had the opportunity to do that in London and to do something that will be new for Facebook, in the same way that AWS was a new business model and product line for Amazon and a bet that paid off very well. We are going from having an enterprise business to having a mid-market business to investing in an SMB business.

Scale 151
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Dharmesh Shah of HubSpot: From Day 0 to IPO. What Went to Plan. What Most Certainly Didn’t (Video, Podcast + Transcript)

SaaStr

This is the revenue growth for HubSpot leading up to the IPO. The other thing that dropped our odds of success was the fact that we were focused on small business, on the SMB market, and everyone we talked to, literally everyone. Do not…,” and the reason is no one hardly ever has succeeded in building a big business in SMB.

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4 Traits of Fast-growing SaaS Companies

OpenView Labs

To find out which of these features are most common, OpenView surveyed over 500 SaaS companies ranging from pre-revenue to $100 million in ARR. As investors, we keep a close eye on customer acquisition cost (CAC) payback. AWS and other infrastructure providers have been using UBP for nearly a decade. Here’s what we learned: 1.