Clouded Judgement

APRIL 11, 2024

The first few months of this year felt like a lot of churning in the market. This has all resulted in the median stock price declining 5% YTD. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years.

Cloud 177

Cloud Software Azure AWS 177

Clouded Judgement

FEBRUARY 2, 2024

Amazon on AWS : “…customers are continuing to shift their focus towards driving innovation and bringing new workloads to the cloud. Azure (excluding Azure AI) continued to decelerate, and while AWS did come in ahead of expectations, it wasn’t a blow out. Follow along to stay up to date! Top 5 Median: 17.2x

Cost optimization & reporting 161

Cost optimization & reporting Cloud Azure AWS 161

Tom Tunguz

APRIL 28, 2022

Paying five decentralized providers in five different tokens means managing several wallets and monitoring token prices to hedge expenses. That’s much more work than the automatic credit card payment with AWS. Tokens reward the validators and the stakers powering the decentralized networks.

Payment Solutions 252

Payment Solutions GCP(Google Cloud Platform) Startup Payment Features 252

SaaStr

MARCH 23, 2023

Marc Benioff sold a huge amount of his Salesforce stock before its run from $2b to $100b+ in market cap. Don’t put your financial health in jeopardy to pay a ton of taxes now in hopes of selling for a higher price later. What if the stock price falls 50%? They aren’t that OK if the stock price falls 50%, actually.

Startup 222

Startup AWS Pricing Marketing 222

SaaStr

DECEMBER 7, 2020

3. “Atlassian and AWS Say: Maybe Worry a Little Bit. Atlassian and AWS, two of the greats, may hold a clue: Atlassian and AWS Say: “Maybe Worry a Little Bit” 4. “A Framework For Your First SaaS Sales Comp Plan” A SaaStr Classic, still going strong in 2020. With the actual cold emails.

Venture Capital 327

Venture Capital Sales Hiring AWS Cloud 327

SaaStr

APRIL 24, 2021

220m in ARR, $13B market cap. Shopify has exploded to $3B+ in ARR and a $135B Market cap, growing an incredible 96% during Covid. Snowflake is growing 100%+ at $700m in ARR, with a $65B market cap. We could have picked many B2D services, like Twilio or others, too, which have primarily or substantial transaction pricing too.

Merchant Services 358

Merchant Services SaaS Payments Payment Solutions Payment Services 358

Clouded Judgement

OCTOBER 27, 2023

Subscribe now Cloud Giants Report Q3 ‘23 Not a great signal for software this week from the Cloud Giants (AWS, Azure and Google Cloud)…After Q2 (3 months ago), the tone from the Cloud Giants around optimizations was largely: optimizations have started to ease, and net new workloads have picked up. That is not new.”

Cost optimization & reporting 152

Cost optimization & reporting Cloud Azure AWS 152

SaaStr

JUNE 28, 2023

So there was a quiet SaaS IPO you may have missed in the craziness of 2021 — SEMRush, a tool your marketing department quite likely uses to keep track of the performance of your SEO and marketing site. It’s tough out there in the public markets, folks. It’s tough out there in the public markets, folks.

Scale 196

Scale AWS Scaling Revenue 196

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. Usage-based pricing will be the key to successful monetization in the future.”. Usage-based pricing is in all layers of the tech stack.

Scale 98

Scale Pricing Scaling AWS 98

SaaStr

MAY 21, 2022

Sprout Social IPO’d in Dec 2019 at an $800m market cap. years later, in a market down 50% …. The markets for SaaS and Cloud stocks are down 50%+ in just a few months, and it hasn’t spared even the leaders. A few case studies: * Sprout Social IPO’d in December 2019 at an $800m market-cap. The markets are brutal.

AWS 222

AWS SaaS Cloud Scale 222

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

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%. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

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

SaaStr

JULY 8, 2023

At AWS Reinvent, if your customers are there. That can be 5x-50x the price. If you don’t have someone in marketing good at events, maybe wait until later to spend too much there. But they are also where field and enterprise marketers spend 40% of their budget. At Dreamforce, if you are in the SFDC ecosystem.

AWS 205

AWS Enterprise Pricing Marketing 205

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

Buffer Resources

AUGUST 16, 2023

We’re also happy to share a more sustainable way of providing this information — our new transparent pricing dashboard. and our commitment to keep up with market rates when it comes to how we pay our team. Another important detail to note is how Average Sales Price (ASP) and Expenses have changed over time.

Merchant Services 79

Merchant Services Payment Services Payment Features Payments 79

Blulogix

NOVEMBER 8, 2023

Transforming the Technology Industry: The Power of Usage-Based Pricing By BluLogix Team The technology industry is in the midst of a profound transformation. Traditional pricing models, such as fixed subscriptions and one-time purchases, no longer align with the dynamic and ever-evolving nature of this sector.

Technology 52

Technology Pricing Payment Features Subscription 52

Clouded Judgement

MAY 10, 2024

All 3 (AWS, Azure, GCP) saw positive reacceleration Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. Overall Stats: Overall Median: 5.7x

Cloud 161

Cloud Software GCP(Google Cloud Platform) Azure 161

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

Tom Tunguz

JULY 26, 2022

I’m watching public company earnings to identify early weaknesses in the software market. That suggests the cloud market is quite strong. Microsoft Azure may have more customers under fixed contracts compared to Google, which may have more customers on a usage-based pricing model. Microsoft Azure. Amazon Web Services.

GCP(Google Cloud Platform) 184

GCP(Google Cloud Platform) Cloud Azure AWS 184

SaaStr

NOVEMBER 8, 2022

Does it cost so, so much to host a few million lines of code on AWS? And your marketing costs should be manageable as your mini-brand kicks in. 18 in marketing? As soon as your competitor cuts prices and quintuples their marketing budget … and is everywhere … can you stay out of the arms race?

Scale 289

Scale SaaS Banking AWS 289

SaaStr

DECEMBER 27, 2023

70% of customers are in the Enterprise and mid-market space, and 30% are SMBs. Customers range from AWS skills-builder platforms with billions of users to Zoom using it for customers and employees. The LMS market segment is big, and Docebo thinks about it in two folds. market is double the size of the internal one.

Sales Hiring 205

Sales Hiring Scale SMB Outsourced Development 205

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. Said another way, the 10Y today is double what it averaged from 2010 to 2020.

Cloud 161

Cloud Azure AWS Software Review 161

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

SaaStr

NOVEMBER 24, 2021

Pothole #2 – Increasing Pricing Rate Without a Sustainable Moat. Raising prices might seem like a quick win to grow your revenue, but it’s critical to bear in mind the effect increased prices will have on your sales cycle, close rates, and disruption risk. Sell it to your market for half the price.

Sales Hiring 190

Sales Hiring Scale Compensation Sales 190

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 Rico Mallozzi: So marketplaces are fundamentally changing, go to market motions for a lot of enterprise technology companies. Azure’s marketplace has over 4 million monthly visitors.

Scale 199

Scale Marketplace as a Service Cloud SaaS Payments 199

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

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 173

Compensation Sales Azure AWS 173

SaaStr

AUGUST 15, 2020

Recently I was catching up with a good friend who used to be CEO of an enterprise-y SaaS social networking company — and the usage and engagement numbers of his business were just awful. OK, just renew at last year’s price. Well, if we do, let’s get a big price cut if usage isn’t high. Should we renew?

AWS 265

AWS Churn Enterprise Engagement 265

OpenView Labs

JANUARY 29, 2020

The much-discussed pricing strategy took over the SaaS world and helped fuel the phenomenal success of SaaS pioneers like Dropbox, Evernote, SurveyMonkey and Hootsuite. HubSpot now offers freemium versions of their CRM, Marketing and Sales products. Here’s a list of the top freemium pricing strategy resources: Table of Contents.

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82

SaaStr

DECEMBER 26, 2022

In this session, she shares insights and trends from research conducted this year that can help software buyers and sellers make smarter decisions about software and the market. . and go-to-market partners, to understand what’s happening in the space. . “G2 Go-to-market Partners released a report using G2 data.

Software Review 192

Software Review Software Azure Cloud 192

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. I’ll post a much longer recap soon, but today I wanted to post the highlights. Top 5 Median: 15.1x

Cloud 169

Cloud Software Review AWS Trends 169

OPEXEngine

JANUARY 11, 2022

Consumption-based pricing is best used when you can accurately and easily break down your service offering into small, digestible units. Many companies in the technology industry are moving toward “pay for what you use” consumption-based pricing models. Four pricing models. Uncommitted contracts. Challenges and shifts.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

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

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. So in 2011, they introduced usage-based pricing.

Pricing 55

Pricing Outsourced Development Marketplace as a Service AWS 55

SaaStr

MAY 5, 2019

“The sham began in February, when an unknown user with a Chinese IP address and fake phone number side-stepped Zillow’s security measures and toyed with the sale prices displayed on the mansion’s listing.”. Who always wins? “Instead of saying the same thing everyone else was already saying ad nauseum—”It’s easy to use!

Cloud 156

Cloud AWS Pricing Revenue 156

SaaStr

MAY 19, 2019

.” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR! But yes, the core market is mature — but at $640m+ ARR. remains an important but smallish market for Xero, at only $44m and 195k of their 1.8m Sales & marketing costs are going up.

SMB 215

SMB Customer Lifetime Value AWS Churn 215