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. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Altimeter is an investment adviser registered with the U.S. Top 5 Median: 14.3x

Cloud 161

Cloud Azure AWS Software Review 161

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%. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. And most importantly, they’ve seen these positive trends continue.

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

Clouded Judgement

APRIL 28, 2023

AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. Then AWS appeared to add fuel to that hope before giving us a huge rug pull. Azure : Coming into the quarter, a growth rate that would have satisfied the market would have been ~29%. All eyes shifted to the AWS report on Thursday.

Cloud 130

Cloud Azure AWS AI Search 130

Clouded Judgement

FEBRUARY 16, 2024

” From AWS (paraphrased): They said they expect the reaccleration they saw in Q4 to continue into 2024 2024 Estimate Updates One important metric I’m tracking this quarter is the change in 2024 estimates pre / post earnings. As you can see, just two months ago, the market predicted that that Fed Funds rate would be 3.6%

Cloud 161

Cloud AWS Metrics Subscription 161

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. This was the worst tone that we’ve heard in years from large AWS/Azure partners, a group that usually expresses different shades of optimism about AWS/Azure growth.”

Cloud 130

Cloud Azure AWS Underperforming Technical Team 130

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%. Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date!

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

Clouded Judgement

APRIL 21, 2023

Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). On AWS, in their Q4 earnings call they said AWS was growing “mid teens” in January (down from 20% in Q4). The big question I have - everyone knows the market is tough right now. Top 5 Median: 12.9x

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

SEPTEMBER 8, 2023

” We saw some green shoots in AWS and a few other consumption names, and overall sentiment seemed more positive. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 169

Cloud Software Review AWS Trends 169

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.” Meaning labor markets continue to be strong! AWS reports next week.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

MARCH 22, 2024

.” Let’s look at consumption revenue - this is also not technically recurring! It’s probably better described as re-occurring vs recurring. This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. Securities and Exchange Commission.

AI 183

AI Revenue Cloud Technical Advisors 183

Stax

APRIL 18, 2024

Independent Software Vendors (ISVs) and Software-as-a-Service Providers (SaaS) operate within the same market, thus creating a push-and-pull revenue dynamic. SaaS companies deliver software applications over the internet on a subscription basis, simplifying access and management for users. What are SaaS companies?

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

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. Altimeter is an investment adviser registered with the U.S.

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

SaaStr

MARCH 31, 2022

And it’s one of the three large cloud vendors that we all know: Microsoft, AWS, and Google. AWS’s marketplace has seen 1.5 million subscriptions transacted and Google’s marketplace has seen 3X growth in SaaS sales. But with cloud computing spend, it’s concentrated typically with one primary vendor.

Scale 193

Scale Marketplace as a Service Cloud SaaS Payments 193

SaaStr

NOVEMBER 14, 2023

What Is A “Consumption” Business In the old days of software, you had a company like Oracle that popularized the perpetual license where customers own the software and vendors own the market. Then, we moved to a more customer-friendly model with SaaS and subscription-based pricing. The first might be market acquisition.

Compensation 164

Compensation Sales Azure AWS 164

Clouded Judgement

JUNE 9, 2023

They did call out sequential growth in Confluent Cloud every quarter this year which was a big positive Still seeing elongated deal cycles and less expansion revenue The Bad AWS: Headwinds Getting Worse Their quarter ended in March, but on the earnings call they called out weakening growth in April. Overall Stats: Overall Median: 5.7x

Trends 130

Trends Cloud Azure AWS 130

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. We sometimes hear companies call themselves “SaaS” companies, because they sell subscriptions, but they do not host software. It changes sales and marketing organizations and their execution.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

Blulogix

NOVEMBER 8, 2023

Traditional pricing models, such as fixed subscriptions and one-time purchases, no longer align with the dynamic and ever-evolving nature of this sector. Subscription Billing The Evolution of Pricing Models in the Technology Industry The technology industry has undergone significant transformations in recent years.

Technology 52

Technology Pricing Payment Features Subscription 52

SaaStr

SEPTEMBER 12, 2019

I’m talking about product-led growth as an investment strategy, but really my background is 10 years of operating experience in the product-led growth world. Now I’m investing in that. I say investment strategy, but really it’s like how do you build a company that’s focused on product-led growth?

Investment 100

Investment Underperforming Technical Team Sales Hiring Software Review 100

Clouded Judgement

SEPTEMBER 15, 2023

AWS growth seems to be re-accelerating, and qualitative feedback from a number of companies in Q2 (especially those with July quarter ends) suggested new customer bookings conversations were picking up. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Top 5 Median: 14.7x

Software Review 130

Software Review Cloud Software AWS 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. But growing with a usage-model is not as straightforward as traditional subscription SaaS. Then they tell their boss what to buy.

Scale 98

Scale Pricing Scaling AWS 98

Clouded Judgement

FEBRUARY 3, 2023

I’ll be right sometimes, I’ll be wrong sometimes, but it’s fun to try and make sense of what’s going on in the markets together. Then we had the Fed meeting this week creating a huge move in the software market. Clearly the market tone is getting more dovish. The market was offsides.

Cloud 130

Cloud Azure AWS Generative AI 130

Chart Mogul

NOVEMBER 30, 2023

Decision-makers still rely on ChartMogul charts and segments to analyze our subscription data, but as we started collecting a lot more different types of data from a lot more sources, we needed a sustainable data management plan for our growing team. We used our daily AWS RDS snapshots and loaded them daily to Snowflake tables.

Engineering 52

Engineering K8S orchestration (Kubernetes) Data AWS 52

How To Buy Saas

MAY 15, 2024

Cloud computing services provide on-demand solutions and IT resources to companies via the Internet with pay-as-you-go or subscription-based pricing models. This may include infrastructural support like storage, security, network equipment, and data centers, as well as comprehensive applications built to perform specific tasks.

DevOps as a Service 52

DevOps as a Service Marketplace as a Service Cloud SaaS 52

Clouded Judgement

AUGUST 11, 2023

” It’s really important that new business is still healthy, and a sign of overall market health. I think market can look forward 2-3 quarters, but we’re getting tight on that window. The hyperscalers (AWS, Azure, GCP) are seeing some uptick, but this is largely from selling compute (ie cloud GPUs).

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

Clouded Judgement

MARCH 31, 2023

The majority of COGS (revenue less COGS = gross profit) fall in hosting costs (ie AWS), and some customer support. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 130

Cloud Sales Hiring AI Headcount 130

OPEXEngine

JANUARY 11, 2022

For example, technology companies like AWS, GCP, and Snowflake offer no contracts for customers interested in using their self-service option or beta-testing the solution. Many companies want to migrate their subscription or perpetual business to consumption pricing models; however, it doesn’t always result in incremental business.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

Intercom, Inc.

DECEMBER 31, 2019

If anything, this was the decade they collectively became leaders not just of the technology industry, but of industry itself – Apple overtook ExxonMobil as the world’s most valuable company by market cap in August 2011 (that month again), and then became the first trillion-dollar company by market cap in 2018.

Payment Solutions 259

Payment Solutions Payment Methods Software SaaS Payments 259

OpenView Labs

MARCH 4, 2021

Today we know of HubSpot —the maker of marketing, sales, and service software products—as a preeminent public company with a market cap above $17B. For their first five years in business, HubSpot offered three subscription packages ranging in price from $3,000 to $18,000 per year. But HubSpot wasn’t always on the IPO trajectory.

Pricing 55

Pricing Outsourced Development Marketplace as a Service AWS 55

OpenView Labs

MARCH 16, 2021

But the shift from pure subscription to usage-based pricing is nearly as complex as going from on-premise to SaaS. It opens up the addressable market by lowering the purchase barrier, which then necessitates finding new ways to scalably acquire users. Structuring go-to-market teams. Game over for subscription-based pricing?

Pricing 52

Pricing Payments SaaS Payments Payment Solutions 52

OPEXEngine

JUNE 29, 2020

Think of it this way: most SaaS companies have high customer acquisition costs, as you have to invest heavily in sales and marketing in order to realize high growth. These companies aren’t likely to become the market leader anytime soon, but at least they can turn over a decent amount of revenue due to their higher profit margins.

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

Intercom, Inc.

DECEMBER 13, 2018

Once you know exactly what you do well – what you do better than any competitor on the market – you can accelerate. I saw we had the opportunity to do that in London and to do something that will be new for Facebook, in the same way that AWS was a new business model and product line for Amazon and a bet that paid off very well.

Scale 151

Scale Marketplace as a Service Mobile Sales Hiring 151

Chart Mogul

JUNE 23, 2022

After a brilliant run up to 2022, SaaS valuations got hammered in the public markets lately. After a brilliant run up to 2022, SaaS valuations got hammered in the public markets lately. This is a perfect time to invest in your user base & core product offering because playing to your strengths will pay off. Source: [link].

SaaS 52

SaaS DevOps as a Service Marketplace as a Service Forecasting 52

ProfitWell

MAY 12, 2020

Some SaaS products allow the user to download the application, but require an internet connection to confirm their subscription for it to operate. This option will require significantly more time investment from an IT department than either of the other two options will. We are not considering those in our comparison of cloud services.

Cloud 59

Cloud Azure SaaS Underperforming Technical Team 59

User Pilot

APRIL 30, 2024

This article will look at the most successful SaaS companies, so you can decide if you want to invest in them for your business. Software as a Service offers specialized tools for product growth , CRM, project management, ERP, collaboration, financial management, customer service, and marketing automation.

SaaS Payments 104

SaaS Payments Payment Services Payment Methods Payment Solutions 104

OpenView Labs

FEBRUARY 11, 2021

As a founder, you can use this 84 cents to pay salaries, office rent, dividends, or invest in R&D. In other words, if customers are purchasing the product only because of price, either you’re in a commodity market or your feature set lacks competitiveness. Most subscription plans have it.

Scale 52

Scale Payment Methods Payment Services Systems Review 52

Chargify

FEBRUARY 1, 2018

Over the last decade, recurring revenue has emerged as the preferred model for businesses moving beyond transactional commerce. While the first generation of recurring revenue was defined by simple subscriptions—think Netflix’s original “one-size-fits-all” $7.99 From Static Subscriptions To The Relationship Economy.

Subscription 75

Subscription Payment Features AWS Scale 75

Casey Accidental

DECEMBER 11, 2023

In a previous post , I talked about how product work post-product/market fit shifts from zero to one innovation to features, growth, and scaling work. Companies build a deep understanding of how they achieved product/market fit in the first market, and make as few tweaks as possible to adapt the product/market fit to these adjacent audiences.

Payments 113

Payments Scale Payment Solutions Technical Review 113