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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 177
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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. Usage on Snowflake is driven by queries run on Snowflake Azure: Neutral Tone With Strength in AI Overall I’d characterize Azure’s quarter as a net positive. They guided to 26-27% growth in Azure in Q2 (with 1% coming from AI).

Trends 130
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Clouded Judgement 1.27.23

Clouded Judgement

Azure (Microsoft) Quarter The week the first of the cloud giants reported - Azure. Early Look at 2023 Guides Given the Azure weakness reported on Tuesday, all software tumbled Wednesday morning with most names down 5-10%. Every week I’ll provide updates on the latest trends in cloud software companies.

Cloud 141
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SaaS Rule of 40 Drivers Using KeyBanc’s 2021 SaaS Survey

SaaStr

The SaaS “Rule of 40” has gained popularity due to its simplicity, requiring only two common financial metrics to be added together. 2 drivers stood out as notable: Customer Acquisition Cost (CAC) and Churn. In terms of Customer Acquisition Costs, “Rule of 40” Qualifiers spent 31% less to acquire a new customer.

SaaS 251
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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. However, it’s also one of the most loosely used metrics, and is frequently misused. I created this subset to show companies where FCF is a relevant valuation metric.

AI 183
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Four Sales Compensation Tactics for Consumption-Based GTM with MongoDB’s SVP of Sales

SaaStr

What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. Driving Market Acquisition When designing a compensation plan, you have to decide what behaviors you want to drive. The first might be market acquisition. This is MongoDB’s approach.

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Clouded Judgement 11.3.23 - No Sign of Re-Acceleration in Software

Clouded Judgement

Maybe with the exception of hyperscalers (particularly Azure). Namely, two large customers caused a huge issue (New Relic account growing very slowly post their acquisition, and a gaming company going back on prem - which I’m guessing means going to self managed Kafka?). All the headwinds that have persisted continue to persist.