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How Quickly Does Headcount Scale in the Fastest Growing Software Businesses?

Tom Tunguz

In fact, this data bolsters the notion that management team’s top priority is recruiting, especially after the business has reached product market fit and capitalized itself well. Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. They start around 25 people.

Headcount 167
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5 Interesting Learnings from Snowflake at $2.4 Billion in ARR

SaaStr

AWS is seeing this, and so is Snowflake. Everyone is basically doing more with not much more headcount (see next point). #4. Growing Headcount, But Much More Slowly That Revenue. Headcount is up 29% year-over-year, but revenue is up 50%. They see the data in real time in terms of usage. Not none, just less.

Headcount 198
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Are You Getting More Competitive, Or Less Competitive? Hitting the Plan Might Not Be Enough

SaaStr

DigitalOcean is growing more slowly than its mega competitors Azure, AWS, etc. Yes, you may have to make some educated guesses and get some data from unusual sources. If nothing else, you can pretty reliability track headcount growth on LinkedIn). That’s a big, big gap. More here. #2. Are we gaining share — or not?

Azure 212
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. Headcount planning, budgeting, fundraising, etc can often be largely based on a top line plan. .” Let’s look at consumption revenue - this is also not technically recurring! Do you have ARR or ERR?

AI 183
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Clouded Judgement 3.31.23

Clouded Judgement

The majority of COGS (revenue less COGS = gross profit) fall in hosting costs (ie AWS), and some customer support. If we believe that AI will ultimately allow us to do “more with less,” we may see headcount growth slow for traditional roles. Or hire less data engineers but write more SQL queries. The list goes on.

Cloud 130
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Tabular: Turning Your Data Swamp into a Data Lakehouse with Apache Iceberg

Clouded Judgement

Tabular is a compelling data lakehouse solution, meaning it brings data warehouse functionality (SQL semantics + ease of use) to the data lake (cost-efficient and scalable). If you want your data platform to run like those at Netflix, Salesforce, Stripe, AirBNB and many others (i.e. Let's dive in.

Data 130
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The 9 best tools for your early-stage startup tech stack

Intercom, Inc.

This is especially important for small teams, where you need to operate at a scale far beyond your headcount (without burning out your team by working around the clock). With the right integrations, you can automate workflows, share data between tools to keep things up to date, and create clearer, more efficient processes.

Scale 163