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. You pay a subscription for websites to help you sell stuff. Fast forward to day, Merchant Solutions is a much larger share of revenue than software subscriptions. Only half does.

Merchant Services 359

Merchant Services SaaS Payments Payment Solutions Payment Services 359

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

FastSpring

FEBRUARY 22, 2024

Join us at the Moscone Center in San Francisco from March 18-22nd, for an extraordinary event dedicated to continually defining market innovations and providing insight into the future of games. Some key features of GDC include: The market-defining conference has a comprehensive selection of lectures, panels, and roundtable discussions.

Merchant Services 154

Merchant Services Development Payment Services SaaS Payments 154

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

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

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. . “What Are Typical Price Increases in SaaS?”

Venture Capital 324

Venture Capital Sales Hiring AWS Cloud 324

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

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

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

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

Buffer Resources

AUGUST 16, 2023

We’ve shared a number of parts of Buffer’s business transparently over the years — and one piece we’ve always wanted to expand on is where your money goes when you pay for a Buffer subscription. and our commitment to keep up with market rates when it comes to how we pay our team.

Merchant Services 85

Merchant Services Payment Services Payment Features Payments 85

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

MAY 31, 2024

This can lead to an airpocket of valuation as companies transition to a different primary valuation metric Outside of the hypserscalers (Azure, AWS, GCP) who have uniquely benefited from AI revenue (mainly selling compute), everyone else has largely struggled. I’m as excited as ever about the long term cloud software markets.

Cloud 177

Cloud Software GCP(Google Cloud Platform) AI 177

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

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

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

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

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 204

Scale Marketplace as a Service Cloud SaaS Payments 204

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

MARCH 22, 2024

This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown. Quick Macro Update We also got an update from the Fed this Wednesday that sent the markets higher. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

AI 183

AI Revenue Cloud Technical Advisors 183

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. Model providers (OpenAI, Anthropic, etc as companies start building out AI).

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

SaaStr

AUGUST 2, 2019

And subscriptions were growing 115%. Tableau does not have 80% market share. At least in today’s high multiple market. There aren’t that many things of true scale, that are strategic, that Salesforce could buy at this stage. Tableau was at >$900m in recurring revenue … growing 41% (!). are all doing well. So it ain’t cheap.

AWS 131

AWS Acquisition Cloud Subscription 131

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

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

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

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

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

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

Blulogix

OCTOBER 11, 2023

A collection of recorded webinars and videos on Software-as-a-Service and Subscription Management Webinars & Videos Key 1: Comprehensive Data Integration The foundation of successful usage-based billing automation for MSPs lies in comprehensive data integration.

Payment Features 52

Payment Features Management Azure AWS 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

SaaStr

MAY 15, 2024

A lot of you reading SaaStr are probably more B2B SaaS oriented and may not be paying attention to the consumer market, but it’s already massive and is continuing to grow quickly. In this week’s Workshop Wednesday, RevenueCat CEO Jacob Eiting and Growth Advocate David Barnard share their annual State of Subscription Apps report with us.

Subscription 266

Subscription Payment Features B2B Mobile 266

Tom Tunguz

JANUARY 9, 2013

Because of the competition, tablet prices are plummeting - I saw a $49 7inch tablet ( and some were giving Nexus 7s away for free with subscription. Clearly, the market winners will pursue the last option. Walking through the halls of CES, every Android phone is identical. LG has copied each Samsung model.

Startup 100

Startup Outsourced Development AWS Marketing 100

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. With the proper SaaS tools, you can manage and improve several business processes, like accounting, marketing, data analysis, HR processes, and much more.

DevOps as a Service 52

DevOps as a Service Marketplace as a Service Cloud SaaS 52

Practical Advice on SaaS marketing

JUNE 3, 2017

When they talk about their websites, I find that marketing people fall into two groups: One group thinks their website is awful. If they’re falling short on marketing and sales goals, obsessing about what’s wrong with the website might not be the best fix. After all, the website is just one piece of the marketing mix.

AWS 100

AWS Social Media Acquisition Subscription 100

ChurnZero

JUNE 24, 2022

With the “great resignation,” fluctuations of the public and private markets, and the omnipresent pandemic, we find ourselves continuously, and quickly, adapting to the shifting landscape. I mean AWS or whatever might be going up too. What’s really most important is your subscription model. Support being lumped into COGS.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98