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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.

Cloud 277
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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 2025 , down from $2.33

Cloud 227
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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. If you’re not top 2-3 in your category, prepare for acquisition, find a defensible niche, or pivot to less mature markets.

AI 234
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Expect A Lot More $2B+ Acquisitions in SaaS and Cloud

SaaStr

Q: Which merger and acquisition trends, if any, do you expect to unfold in the next 12 months? These are the Best of Time in Cloud and SaaS, as odd as that still seems. If you are worth $20b-$1T+, you often don’t want to wait for a small acquisition or internal initiative to bear fruit. And you pay up to get it.

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The Quiet Liquidity Crisis in SaaS

SaaStr

He summarized the M&A (acquisitions) of The Top 10 Software Acquirers. And what you can see is there is really almost no liquidity for startups and scale-ups in SaaS and Cloud at the moment. Public SaaS and Cloud companies, and AI leaders like NVidia, have still generated a lot of cash for shares. years or so.

SaaS 306
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State of the Cloud 2024: The Cloud AI Era with Bessemer Venture Partners

SaaStr

Every year, Bessemer Venture Partners releases a State of the Cloud report. This year, it’s all about AI, which is why Sameer Dholakia, Partner at Bessemer, calls it the Cloud AI Era. Four portfolio companies join Sameer to talk about three trends of the Cloud AI Era. Like we’re all here at SaaStr in Cloud.

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We’re Back. Q1 Was a Record for Tech Acquisitions in Dollars. But Deal Count? It’s Doubled But Isn’t Close to 2021.

SaaStr

So Bloomberg and CB Insights have the latest data out on start-ups getting acquired, and 2025 is off to a record start : Wiz’s record $32 Billion acquisition by Google pushes the dollar value to a record, but you may have also missed there were 11 VC-backed $1B+ exits already in 2025, worth $54.5 Cloud has just gotten going.”