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

SaaStr

The startup I invested in that were acquired by PE in the 2020-2021 Boom were acquired for 8x in one case, 12x in another, and 15x in a third. 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?

AWS 257
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Picking Teams in AI

Tom Tunguz

It’s unclear how the Databricks acquisition might change that relationship. For startups building LLM-based applications & infrastructure, this alters the calculus of selecting a cloud. For startups building LLM-based applications & infrastructure, this alters the calculus of selecting a cloud.

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The Top 10 Events in SaaS. According to ChatGPT.

SaaStr

AWS re:Invent : AWS re:Invent is Amazon Web Services’ (AWS) annual conference, focused on cloud computing and SaaS-related services. The event brings together developers, architects, and IT professionals to explore the latest AWS developments.

ChatGPT 224
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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., 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. Is Software Rebounding?

Cloud 177
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How to Categorize Expenses in a SaaS Startup v2.0

Baremetrics

Here’s an overview of the series: Part 1: How to Categorize Expenses in a SaaS Startup v2.0 You’ll need Cost of Revenue to calculate your Gross Margin, which in turn you need to calculate Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC) Payback Time and to understand your company’s unit economics in general.

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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. Coming out of earning season I’m slightly more optimistic about a back half acceleration (August or later) than I was coming in. The Good Mongo: Very Positive - Is The Bottom Behind Them? They guided to 26-27% growth in Azure in Q2 (with 1% coming from AI).

Trends 130
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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.