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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

net retention and CAC payback). 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. Net new ARR added was down 28% from Q1 last year.

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Databricks Just Caught Snowflake at $3.7B ARR. Here’s How They Did It (And What’s Next)

SaaStr

ARR with 50% growth at that scale 500+ customers consuming at over $1 million annual revenue run-rate 80%+ subscription gross margins (infrastructure companies dream of margins like this) Free cash flow positive for the first time 140% Net Revenue Retention (top decile performance) Growing Twice as Fast As Comps When you’re doing $3.7B

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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

AWS, Twilio, Heroku, etc. ” The company grew from $15M in ARR to more than $1B with this model, consistently achieving better than 130% net dollar retention. With this model, Twilio maintained contracted revenue at less than 50% of ARR while achieving industry-leading retention metrics.

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Clouded Judgement - 3.28.25 - The New AI Risk Curve

Clouded Judgement

Fast forward to the launch of AWS and the public cloud. By the time they got their competitor up and off the ground, that first mover may already be at $100m+ in revenue and at escape velocity. So why try and compete now? This dynamic enabled companies to hit escape velocity sooner in their lifecycle.

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Payment and Checkout Scalability for D2C Gaming Partners

FastSpring

And negative experiences during checkout and payment processes can damage your brands reputation and negatively impact player retention. With AWS elasticity and real-time observability, FastSpring can make adjustments and scale instantly, ensuring uninterrupted transactions no matter how many players are buying.

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Clouded Judgement 7.18.25 - The Return of the Point Solution

Clouded Judgement

There are so many similar stories coming out of AWS ReInvent every year. It was ~4 years after AWS was launched and the public cloud started to take off. They’d announce a ton of new products on stage, and the initial reaction was always “Wow! They just killed X, Y, Z startup!”

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Clouded Judgement 10.11.24 - Budget Flush

Clouded Judgement

The hyperscalers (AWS, Azure, GCP) are always some of the first companies to report earnings during earnings season (coming up in 2 weeks), and there’s always a read through for consumption names (meaning people believe there’s a correlation). Cloudflare is up 17%. Datadog is up 14%. Mongo is up 16%. Snowflake is up 14%.

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