Clouded Judgement

AUGUST 4, 2023

” These are two quotes about AWS on the Amazon earnings call. AWS grew 16% in Q1, but called out growth in April (first month of Q2) was 11%. You can see more detail about their net new ARR added each quarter below Azure Growth came in at 27%, and guided to 25-26% growth for Q3. Overall Stats: Overall Median: 6.4x

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

Clouded Judgement

JANUARY 6, 2023

Cloud Downgrades This week UBS came out with a couple research reports citing concerns in AWS / Azure growth. This brings me back to AWS / Azure downgrades. Revenue multiples are a shorthand valuation framework. Every week I’ll provide updates on the latest trends in cloud software companies.

Cloud 130

Cloud Azure AWS Underperforming Technical Team 130

Clouded Judgement

OCTOBER 20, 2023

Hyperscaler Preview Next week Amazon, Microsoft and Google report earnings and we’ll see Q3 data for AWS, Azure and Google Cloud. Office 365 Copilot, for example, doesn’t go live until November and we most likely won’t see meaningful revenue from it until next year. Overall Stats: Overall Median: 5.7x

Cloud 161

Cloud Azure AWS Software Review 161

Clouded Judgement

OCTOBER 28, 2022

Hyperscalers Report Quarterly Earnings This week we saw AWS (Amazon), GCP (Google) and Azure (Microsoft) report earnings. Overall, it wasn’t pretty… AWS grew 28% when expectations were 30-31%. At the same time, Azure came in below expectations. Follow along to stay up to date! Top 5 Median: 15.8x

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

Clouded Judgement

MAY 10, 2024

And no one raised full year guide >2% The median “beat” (Q1 revenue over Q1 consensus estimates) was 1.5%, which is the lowest it’s been in the last 4 years Overall, it’s been a TOUGH quarter for software companies. Revenue multiples are a shorthand valuation framework. Overall Stats: Overall Median: 5.7x

Cloud 161

Cloud Software GCP(Google Cloud Platform) Azure 161

Clouded Judgement

JUNE 9, 2023

Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong. 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.

Trends 130

Trends Cloud Azure AWS 130

Clouded Judgement

APRIL 21, 2023

Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). Let’s double click on Azure. On AWS, in their Q4 earnings call they said AWS was growing “mid teens” in January (down from 20% in Q4). Revenue multiples are a shorthand valuation framework.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

SaaStr

OCTOBER 13, 2022

You need an efficient way to keep your customers successful, reduce churn, drive adoption, and increase net revenue retention. Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure.

GCP(Google Cloud Platform) 192

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 192

Clouded Judgement

JULY 28, 2023

AI = Data + Compute I’ll continue beating this drum, but we got two great quotes from Azure and AWS this week. ” Then at AWS Summit they called out “Your data is your differentiator when it comes to Generative AI.” AWS reports next week. Revenue multiples are a shorthand valuation framework.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

AUGUST 11, 2023

The good news is gross retention (ie churn) stayed constant. While the overall median revenue multiple of the software universe is ~6x (which is ~25% below the long term average of ~8x), high growth software is currently trading at a premium to it’s long term average (9.4x Revenue multiples are a shorthand valuation framework.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

SaaStr

NOVEMBER 14, 2023

What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. In this approach, you’re paying a lot to reps for retention. It might be more competitive and secure revenue longer-term to put the commitment element on top of a compensation plan.

Compensation 161

Compensation Sales Azure AWS 161

Clouded Judgement

NOVEMBER 10, 2023

Hyperscalers (AWS, Azure, GCP as companies look for cloud GPUs who aren’t building out their own data centers) Infra (Data layer, orchestration, monitoring, ops, etc) Durable Applications We’ve clearly well underway of the first 3 layers monetizing. Revenue multiples are a shorthand valuation framework.

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

Clouded Judgement

FEBRUARY 3, 2023

In the short term, enjoy the ride as the chase continues 😊 Kind of related to all of this - we now have seen the Q4’s from AWS, Azure and Google Cloud. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 130

Cloud Azure AWS Generative AI 130

OpenView Labs

FEBRUARY 9, 2021

This is why we’re seeing more and more SaaS companies—Datadog, Twilio, AWS, Snowflake, and Stripe, to name a few—find success with product led growth paired with usage-based pricing. Though it was pioneered in the infrastructure layer (think: AWS and Azure), it’s becoming increasingly popular for API-based products and application software.

Scale 98

Scale Pricing Scaling AWS 98

OPEXEngine

DECEMBER 7, 2021

The pricing model, which leads to increases or decreases in revenue based on how much customers engage with a service, has been gaining on the more traditional subscription model as the main way SaaS companies make money. It has tended to be used most in infrastructure platforms, like AWS, Google Cloud, and Azure.

Subscription 52

Subscription Payment Features Pricing SaaS 52

ProfitWell

SEPTEMBER 10, 2020

SaaS revenue is expected to reach $143.7 Running your own server to handle your customer's valuable data requires a huge investment to match the same level of security and reliability that comes baked into services like Amazon AWS and Microsoft Azure cloud. Later, you'll be able to track annual recurring revenue as well.

SaaS Payments 66

SaaS Payments Trends Merchant Services Payments 66

Audacix

AUGUST 11, 2023

Here the "worm" is being well prepared to ensure your company stays compliant with this far-reaching legislation and avoids penalties, the goliath among which is the fine of 4% of your company's global revenues! Restrict access and establish retention timelines. Examples include: Veronis, Azure Purview, AWS Macie.

Outsourcing Services 52

Outsourcing Services Technical Review Cybersecurity Data 52

SaaStr

JULY 29, 2020

And I remember like AWS was growing really quickly. And at the time there was a big debate of, “Will big companies ever really use AWS?” I mean them an Azure, like they’ve just had tremendous success, but 10 years ago that wasn’t a given. Michelle: Yeah. I don’t want the business to run me.

Sales Hiring 170

Sales Hiring Outsourcing Services Scale Sales Recruiting 170

SaaStr

SEPTEMBER 13, 2020

If you look at the IAS vendors, they passed $130 billion revenue milestone this year. We’ve all seen AWS and what they’ve done with their platform. Azure has been gaining on them rapidly and is growing a double that rate. I hired a great sales leader, revenue ops, and now he’s our chief revenue officer.

Sales Hiring 156

Sales Hiring Scale Payments Cloud 156

SaaStr

AUGUST 22, 2020

This will be a really strong indicator of retention and recruiting. I think that there is probably another couple orders of magnitude of growth in these markets, which is why I don’t get that energized by like, “Okay, is Azure in the lead? Is AWS in the lead? Is the Google in the lead?”

Sales Recruiting 146

Sales Recruiting Cloud CTO Hire Scale 146