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. They also are seeing AI revenue (largely compute) show up sooner than anyone else. I’d say both of the “non AI” Azure / AWS figures weren’t actually that strong?

Cost optimization & reporting 161

Cost optimization & reporting Cloud Azure AWS 161

SaaStr

APRIL 24, 2021

So many startups these days are claiming they have “ARR” from revenue that … doesn’t recur. Doesn’t ARR stand for Annual Recurring Revenue? ARR now really means revenue with 100%+ Net Revenue Retention. 50% revenue from software (recurring), 50% from payments (not-recurring).

Merchant Services 356

Merchant Services SaaS Payments Payment Solutions Payment Services 356

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

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

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

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%. 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 Cost optimization & reporting AWS 130

OPEXEngine

DECEMBER 7, 2021

Dive Brief: Usage-based pricing has grown 32% this year and now 45% of software-as-a-service (SaaS) companies use it all or in part, up from 34%, an OpenView survey shows. The subscription in the earlier model was a little bit more like shelfware,” the company’s CFO, Chitra Balasubramanian, told CFO Dive. Pricing model growth.

Subscription 52

Subscription Payment Features Pricing SaaS 52

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%. 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 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. After all, they had a lot of AI tailwinds, and benefited tremendously from consolidation (without a headwind of a larger base of smaller startups, like AWS).

Cloud 130

Cloud Azure AWS AI Search 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. Even If It Isn’t Revenue.”

Venture Capital 313

Venture Capital Sales Hiring AWS Cloud 313

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

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

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. However, revenue growth didn’t bottom until Q3 ‘09.

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. Q2 benefited from an “easy comp” (since Q1 was so light), so we’ll see how this trend continues (or doesn’t) in Q3 Moving on to Q2 YoY revenue growth. Overall Stats: Overall Median: 6.2x

Cloud 169

Cloud Software Review AWS Trends 169

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). Revenue multiples are a shorthand valuation framework. Follow along to stay up to date!

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 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. Revenue multiples are a shorthand valuation framework. Overall Stats: Overall Median: 6.4x

Cloud 161

Cloud AWS Metrics Subscription 161

Baremetrics

MARCH 30, 2021

If you are looking for the right billing and invoicing solution for your business, Zuora and Chargebee should be at the top of your list. Do they support the payment platform you desire? Do any of them have what you want in a subscription management service? Both companies have top-notch features and excellent functionality.

Payment Solutions 105

Payment Solutions Payments Payment Features Payment Methods 105

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. Challenges and shifts. New coverage models.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

SaaStr

APRIL 30, 2022

Average Revenue per Customer. So growth of the kind of subscription, eCommerce industry has been over 100% year on year for the past five years, according to McKinsey. And basically SaaS revenue models is just magical for investors and for businesses. Because they’re both recurring and predictable. MRR, obviously.

SaaS Payments 227

SaaS Payments Metrics Payment Methods Scale 227

Blulogix

OCTOBER 11, 2023

Streamlining Success: Five Keys to Automating Usage-Based Billing for Managed Services Providers By BluLogix Team Don’t forget to sign up now to learn more about how to implement usage based pricing models in our upcoming webinar with MGI Research. Generate immediate invoices. Adjust pricing models as client needs change.

Payment Features 52

Payment Features Management Azure AWS 52

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

JUNE 9, 2023

Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. New customer growth seems to be picking up.

Trends 130

Trends Cloud Azure AWS 130

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. For the bottom 10 companies on the right hand side of the chart, the median change in stock price after earnings was (18%).

Software Review 130

Software Review Cloud Software AWS 130

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. Top 5 Median: 14.5x

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

OpenView Labs

JUNE 16, 2021

As this product-led wave gets bigger, the concept of usage-based pricing is becoming more and more appealing to software companies. or hybrid (upfront subscription fee, and then a usage-based charge), this billing strategy is a hot topic. Moving to usage-based pricing. An introduction to usage-based pricing.

Pricing 64

Pricing Scale Forecasting AWS 64

SaaStr

MARCH 1, 2024

This last quarter announced revenue was up over 100% in the quarter, and now they’re a top five company in the world by market cap. Notion launched the first of many upcoming AI features, and they’ve priced it so that it may be at $100M ARR in the near term. The automations are an add-on, priced at 50% of core offerings.

Generative AI 226

Generative AI Outsourcing Services AI Software Review 226

Clouded Judgement

MARCH 31, 2023

The majority of COGS (revenue less COGS = gross profit) fall in hosting costs (ie AWS), and some customer support. The only way for software companies to avoid this gross margin compression when incorporating AI features is to raise prices. Double the price! Consumption Pricing.

Cloud 130

Cloud Sales Hiring AI Headcount 130

ProfitWell

NOVEMBER 5, 2019

An automatic subscription renewal charge for a subscription you’re no longer using or that you don't even remember signing up for. Even worse, you go to cancel your subscription, only to discover it's nearly impossible. What is a subscription renewal? Shipping the product to customers (for ecommerce subscriptions).

Payment Features 49

Payment Features Subscription Payment Methods Merchant Services 49

Clouded Judgement

FEBRUARY 3, 2023

There’s a real chance the fed funds rate isn’t going >5%, and a soft landing or delayed recession is certainly possible (maybe even being priced in). If the market thinks the setup for H2 is great, it won’t wait until H2 to “price it in.” Revenue multiples are a shorthand valuation framework.

Cloud 130

Cloud Azure AWS Generative AI 130

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

Subscription 75

Subscription Payment Features AWS Scale 75

OpenView Labs

MARCH 4, 2021

For their first five years in business, HubSpot offered three subscription packages ranging in price from $3,000 to $18,000 per year. The company struggled with poor churn and anemic expansion revenue. Net revenue retention was near 70%, a far cry from the 100%+ that most SaaS companies aim to achieve.

Pricing 55

Pricing Outsourced Development Marketplace as a Service AWS 55

SaaStr

NOVEMBER 14, 2023

Then, we moved to a more customer-friendly model with SaaS and subscription-based pricing. What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. Key Takeaways Consumption-based pricing requires rethinking your organization.

Compensation 159

Compensation Sales Azure AWS 159

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. The product is hosted by the vendor or a 3 rd party (like AWS).

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

Clouded Judgement

AUGUST 11, 2023

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 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

OpenView Labs

MARCH 16, 2021

The usage-based pricing model almost feels like a cheat code —it enables SaaS companies to more efficiently acquire new customers, grow with those customers as they’re successful, and keep those customers on the platform. But the shift from pure subscription to usage-based pricing is nearly as complex as going from on-premise to SaaS.

Pricing 52

Pricing Payments SaaS Payments Payment Solutions 52

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. Not satisfied with reaching $1 billion in annual revenue, Atlassian furthered its commitment to product led growth by jumping on the freemium bandwagon.

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82