SaaStr

MARCH 6, 2024

AWS alone generated $175m of contract value for Okta, growing 130%. GRR / Logo Retention in Mid 90% Range. And a few other interesting learnings: #6. 8 Out of 10 of Top Deals Were Sourced or Influenced by Partners And more than 40% of their total business is invoiced via channel partners. Strong, and what we’d expect.

Fractional VPE 205

Fractional VPE Part-Time VPE Scale SMB 205

ChurnZero

JUNE 24, 2022

In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98

SaaStr

AUGUST 5, 2021

. – $234M rev (+67% YoY) vs $212M consensus (10% beat) – $247M next Q guidance vs $225M consensus (10% raise) – Last Q YoY growth was 51% – >130% net retention – 7 months GM adj. AWS accelerated to 37% YoY growth , up from 32% last quarter. CAC payback – 76% GM – 18% FCF Margin $DDOG.

SaaS 333

SaaS AWS Cloud Scaling 333

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

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%. We’ve all been waiting for cloud optimizations to ease up, and this is our clearest signal that we’re getting there.

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

Clouded Judgement

MARCH 22, 2024

Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range (the aggregate change in expansion - contraction - churned revenue). Namely, retention!! For “fake” ARR, retention can vary wildly.

AI 183

AI Revenue Cloud Technical Advisors 183

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

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%. Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date!

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

SaaStr

APRIL 24, 2021

ARR now really means revenue with 100%+ Net Revenue Retention. First, Snowflake rolls its large customers into fixed comittments (as does AWS and many others), and bills them in advance. Doesn’t ARR stand for Annual Recurring Revenue? Well of course it does. Let’s take a look at 3 great examples: Example #1: Bill.com.

Merchant Services 356

Merchant Services SaaS Payments Payment Solutions Payment Services 356

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. Said another way, the 10Y today is double what it averaged from 2010 to 2020. These are thought to be the early AI winners, largely due to all of the compute they’re selling to power GenAI applications.

Cloud 161

Cloud Azure AWS Software Review 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. Partly due to larger layoffs, as well as stronger bookings And finally - net retention. Not surprising, net retention continued to fall.

Cloud 169

Cloud Software Review AWS Trends 169

SaaStr

OCTOBER 13, 2022

You need an efficient way to keep your customers successful, reduce churn, drive adoption, and increase net revenue retention. Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure.

GCP(Google Cloud Platform) 181

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 181

SaaStr

AUGUST 4, 2022

And inflation is awful. Datadog quarter: – $406M rev (+74% YoY) vs $378M consensus (7% beat) – $412M next Q guidance vs $409M consensus (1% raise) – >130% net retention – 9 months GM adj. . — Jason 2022 SaaStr Annual Sep 13-15 Lemkin (@jasonlk) August 3, 2022. So are we in a downturn in SaaS?

Venture Capital 272

Venture Capital AWS Cloud Scale 272

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). Every week I’ll provide updates on the latest trends in cloud software companies.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

JUNE 9, 2023

Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong. This suggests that we’re at least getting closer to the bottom (but to be clear we’re still well below pre-headwind consumption levels). New customer growth seems to be picking up.

Trends 130

Trends Cloud Azure AWS 130

ChurnZero

AUGUST 11, 2020

Did you know that 60% of SaaS companies reported a negative impact on customer retention and upsell deals due to the pandemic? Customer retention, along with new customer acquisition, has been challenging for most companies when the pandemic hit. And, as you know, a better customer experience leads to better customer retention.

Retention 97

Retention Strategy Underperforming Technical Team Software Review 97

ChurnZero

JUNE 24, 2022

In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

Benchmarks 52

Benchmarks Retention Software Review Technical Review 52

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. Don’t let low churn give you comfort, unless it’s attached to high NPS and net retention. Churn is a lagging indicator.

AWS 258

AWS Churn Enterprise Engagement 258

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. Yes, I wouldn't say it's all back to where 2021 was, but there are some green shoots, right?

Cloud 161

Cloud AWS Metrics Subscription 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.” AWS reports next week. ” Data is more important than ever! So what did we learn?

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

SaaStr

MAY 12, 2019

We all know this from AWS and Twilio on down, but Fastly is a visceral reminder. 130%+ revenue retention. One consistent theme for every B2B/B2D company we’ve profiled here about to IPO, or that has recently IPO, is they all have outstanding revenue retention — even ones selling to SMBs like Zoom and Pagerduty.

Outsourced Development 202

Outsourced Development AWS Retention Enterprise 202

SaaStr

NOVEMBER 14, 2023

What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. In this approach, you’re paying a lot to reps for retention. There are still some complexities around SaaS-based approaches. So, it’s more customer-friendly, but it also has its pros and cons.

Compensation 164

Compensation Sales Azure AWS 164

SaaStr

NOVEMBER 24, 2021

It can be tough to know the answer to that question, but the indicators should be focused more on the retention side over the acquisition side. . Your customer retention is the best quantifiable measure of product-market fit; however, retention is a lagging indicator. Roberge recommends starting with product-market fit.

Scale 180

Scale Sales Hiring Compensation Sales 180

The Angel VC

MAY 12, 2018

“Although it is important to our business that our users renew their subscriptions after their existing subscriptions expire and that we expand our commercial relationships with our users, given the volume of our users, we do not track the retention rates of our individual users. We “ do not track the retention rate of our individual users”.

AWS 187

AWS Scale Subscription Payment Features 187

ReSci

JANUARY 23, 2018

Author: Avi Sanadhya, ReSci Platform Engineering Team At Retention Science we deliver personalized marketing campaigns powered by machine learning to drive a deeper level of customer engagement. The post Serverless with AWS Lambda: Reducing metrics reporting lag from hours to seconds at ReSci appeared first on ReSci.

AWS 40

AWS Metrics Machine Learning Artificial Intelligence 40

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. Though it was pioneered in the infrastructure layer (think: AWS and Azure), it’s becoming increasingly popular for API-based products and application software.

Scale 98

Scale Pricing Scaling AWS 98

Clouded Judgement

AUGUST 11, 2023

The good news is gross retention (ie churn) stayed constant. The hyperscalers (AWS, Azure, GCP) are seeing some uptick, but this is largely from selling compute (ie cloud GPUs). Not quite… The earnings call gave us more detail, and painted a more positive picture than just the numbers may suggest.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

Intercom, Inc.

OCTOBER 19, 2022

Intercom services and data are hosted in Amazon Web Services (AWS) facilities in the USA (us-east-1), Dublin, Ireland (eu-west-1), and Sydney, Australia. . All of our infrastructure and data are spread across three AWS availability zones and will continue to operate should any one of those fail.

compliance 138

compliance Data Software Review Scale 138

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. And I think we got some hints in Q2 that re-acceleration may be a quarter or two.

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

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

User Pilot

MAY 10, 2023

Amazon grants its AWS customers access to its recommendation engine to help them personalize their user experience. AI marketing examples from famous brands to improve customer experience Want to drive customer retention or conversion by meeting your customers at their place of need?

Artificial Intelligence 75

Artificial Intelligence AI Search AI Machine Learning 75

Clouded Judgement

FEBRUARY 3, 2023

In the short term, enjoy the ride as the chase continues 😊 Kind of related to all of this - we now have seen the Q4’s from AWS, Azure and Google Cloud. Lots of deceleration in growth.

Cloud 130

Cloud Azure AWS Generative AI 130

SaaStr

OCTOBER 31, 2019

It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”

Cloud 100

Cloud Scale AWS Machine Learning 100

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 gross margin profile dictates how much you can spend on operating expenses to ultimately generate free cash flow. The challenge with AI is that it introduces another (potentially large) component to COGS.

Cloud 130

Cloud Sales Hiring AI Headcount 130

ChurnZero

MARCH 31, 2022

Following the webinar, we invited Dave to give his rapid-fire takes on tracking the retention of auto-renew customers, calculating customer lifetime value as a startup, comping CSMs on expansion, determining the importance of measuring time to value, and much more. tech ops, AWS, technical support). A: I love auto-renews.

Customer Success 98

Customer Success Metrics Technical Review Scale 98

OPEXEngine

DECEMBER 7, 2021

It has tended to be used most in infrastructure platforms, like AWS, Google Cloud, and Azure. Companies with the best net dollar retention (NDR) and customer acquisition costs (CAC), two other closely watched SaaS metrics, also tend to rely on usage-based pricing. But that has been changing. Closely watched SaaS metrics.

Subscription 52

Subscription Payment Features Pricing SaaS 52

OpenView Labs

MARCH 4, 2021

Net revenue retention was near 70%, a far cry from the 100%+ that most SaaS companies aim to achieve. By the time HubSpot went public in 2014, net revenue retention had jumped to nearly 100%—all without hurting the company’s ability to acquire new customers. The company struggled with poor churn and anemic expansion revenue.

Pricing 55

Pricing Outsourced Development Marketplace as a Service AWS 55