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One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. Is Deflation Coming?

SaaStr

There have been so many price increases since 2021, many apps are 40% or more expensive than they were in 2021. To raise prices even more? DeepSeek has, at least in theory, cut the price of AI for SaaS as much as 90% overnight. And in Classic B2B you are raising my prices this quarter again ? But will it hold?

AWS 294
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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Most startups play defense when discussing pricing with customers. They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. For many founding teams, pricing is one of the most difficult and complex decisions for the business.

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How Anthropic Rocketed to $4B ARR — And Why Your B2B Playbook May Already Be Obsolete

SaaStr

API-First Revenue Model Unlike the subscription-heavy models of traditional SaaS, 70-75% of Anthropic’s revenue comes from API calls through pay-per-token pricing. This requires rethinking pricing, packaging, and revenue recognition. While Anthropic likely operates at 40-60% gross margins today (vs.

B2B 249
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10 Things Startups Get Wrong Selling to Developers and Engineers (from the CRO Who Scaled Databricks from

SaaStr

Starting with Complex Pricing Models The Mistake : Trying to capture every dollar with complex pricing from day one. The Databricks Evolution : “We started with really simple pricing—maybe two SKUs and then an add-on. Now we have fairly complex pricing because we have lots of products.”

Scale 262
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Palantir’s +79% vs Bill’s -43%: The AI Divide That Defined SaaS Performance in 1H’25

SaaStr

Amplitude (AMPL): +20% YTD Q1 2025 revenue reached $80 million (10% YoY growth) with ARR of $320 million (12% YoY), demonstrating return to double-digit growth Board approved first-ever $50 million share repurchase program to capitalize on stock price dislocations and manage dilution Strategic partnerships with Twilio Segment and AWS expanding enterprise (..)

AI 216
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Loveable and Replit Both Hit $100M ARR in Record Time. The Vibe Coding TAM: How Big Can This Market Really Get?

SaaStr

Competitive Response from Incumbents Potential Disruptors : Microsoft integrating vibe coding into Power Platform/Office suite Google developing natural language interface for Google Cloud Amazon building vibe coding capabilities into AWS Adobe creating AI-native design-to-code workflows Risk Assessment : High impact, high probability.

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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

And no, this wasn’t all because of leap year last year (that would only account for a ~3% delta at most) The Hyperscalers (AWS, Azure, Google Cloud) also declined net new adds year over year, but not by as much. What I’ve shown below is the market-adjusted stock price reaction. Let’s get into some high level data.

Cloud 277