Clouded Judgement

OCTOBER 27, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. You can see some quotes from Azure / AWS in my Q2 recap , and pasted below. I believe one of the bigger reasons software has held up despite the run up in the 10Y to 5% is the expectation for re-acceleration (ie numbers / forecasts going up).

Cost optimization & reporting 152

Cost optimization & reporting Cloud Azure AWS 152

Clouded Judgement

MARCH 22, 2024

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. Follow along to stay up to date!

AI 183

AI Revenue Cloud Technical Advisors 183

Tom Tunguz

FEBRUARY 2, 2023

I’m watching public company earnings to identify early weaknesses in the software market. A year ago, AWS, GCP, & Azure averaged 44% annual growth. So far in the first month of the year, AWS year-over-year revenue growth is in the mid-teens. Google: [We] are pushing Google Cloud to Profitability.

GCP(Google Cloud Platform) 269

GCP(Google Cloud Platform) Cloud AWS Sales Hiring 269

SaaStr

MAY 16, 2022

But at end of the day, in Cloud, the question is if CIO and related spend will slow down. So follow AWS, Azure and Google Cloud. So there’s much angst and even panic with so many SaaS and Cloud public stocks down 50% or more from their peaks. They are the Cloud. If they stumble, we’re in for a rough patch.

Cloud 246

Cloud Azure AWS Engineering 246

Tom Tunguz

OCTOBER 27, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Microsoft Azure. Google Cloud Platform. Infrastructure revenue growth averaged 33% this quarter, which is astounding considering we’re talking about businesses that sum to more than $50b of revenue per quarter.

Cloud 224

Cloud GCP(Google Cloud Platform) Azure AWS 224

Clouded Judgement

AUGUST 4, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Cloud Giants Update “What we're seeing in the quarter is that those cost optimizations, while still going on, are moderating and many maybe behind us in some of our large customers. Follow along to stay up to date!

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

Clouded Judgement

OCTOBER 20, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Hyperscaler Preview Next week Amazon, Microsoft and Google report earnings and we’ll see Q3 data for AWS, Azure and Google Cloud. Revenue multiples are a shorthand valuation framework. Follow along to stay up to date!

Cloud 161

Cloud Azure AWS Software Review 161

Clouded Judgement

APRIL 28, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. Azure reported on Tuesday and gave us that glimmer of hope. Azure came in at 31% (constant currency). Follow along to stay up to date!

Cloud 130

Cloud Azure AWS AI Search 130

Clouded Judgement

NOVEMBER 3, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Some of these drops rival one of the worst ever software earnings reaction of Tableau in 2016! On Thursday the software index (WCLD) was up ~3%! Pure revenue multiples are trading at a 31% discount to their long term average (5.4x

Software Review 161

Software Review Cloud Software Azure 161

Clouded Judgement

JANUARY 6, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Cloud Downgrades This week UBS came out with a couple research reports citing concerns in AWS / Azure growth. We know software is impacted from macro - but how bad will it get? This brings me back to AWS / Azure downgrades.

Cloud 130

Cloud Azure AWS Underperforming Technical Team 130

Tom Tunguz

JULY 26, 2022

I’m watching public company earnings to identify early weaknesses in the software market. Microsoft Azure. Google Cloud Platform. Microsoft Azure grew 40% y/y, tying the fastest quarterly growth rate in the past 5 quarters. That suggests the cloud market is quite strong. Amazon Web Services.

GCP(Google Cloud Platform) 176

GCP(Google Cloud Platform) Cloud Azure AWS 176

Clouded Judgement

APRIL 21, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). Let’s double click on Azure. Follow along to stay up to date! The Q4 ‘22 growth rate was 38% YoY.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

OCTOBER 28, 2022

Every week I’ll provide updates on the latest trends in cloud software companies. Hyperscalers Report Quarterly Earnings This week we saw AWS (Amazon), GCP (Google) and Azure (Microsoft) report earnings. At the same time, Azure came in below expectations. Follow along to stay up to date! Top 5 Median: 15.8x

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

Clouded Judgement

JANUARY 27, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Azure (Microsoft) Quarter The week the first of the cloud giants reported - Azure. Early Look at 2023 Guides Given the Azure weakness reported on Tuesday, all software tumbled Wednesday morning with most names down 5-10%.

Cloud 141

Cloud Azure Pricing Subscription 141

Tom Tunguz

FEBRUARY 13, 2023

I’m watching public company earnings to identify early trends in the software market to inform startups’ plans for 2023. Large customer revenue contribution increased again sequentially to 63% of revenue, up from 57% in the fourth quarter last year. represented 53% of revenue and increased 44% year-over-year.

Cloud 216

Cloud Azure Headcount Software Review 216

SaaStr

JULY 27, 2022

So when we started SaaStr waaay back in 2012, I never would have thought of profiling Microsoft and its old fashioned desktop software. But fast forward to today, and Microsoft truly is a Cloud and SaaS company, with Azure and LinkedIn its fastest growing business units! MSFT Q4 2022 – Revenue up 12% to $51.9

Azure 283

Azure Cloud B2B Scaling 283

Clouded Judgement

AUGUST 11, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. The weakness they called out was from larger cloud-native businesses. This is all important because on a relative basis, high growth software is expensive. So on a growth adjusted basis, high growth software is expensive.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

Clouded Judgement

JUNE 20, 2023

Q1 earnings season for cloud businesses is now behind us. The question on everyone’s mind - when will we see software re-accelerate? The real headwinds to software (tougher expansion, longer sales cycles / procurement, slower new business, budget crunches / RIFs, etc) started last August.

Cloud 161

Cloud Software Benchmarks Scale 161

Clouded Judgement

JULY 28, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. AI = Data + Compute I’ll continue beating this drum, but we got two great quotes from Azure and AWS this week. Cycle of Cloud Optimizations Q2 earning season has officially kicked off! Follow along to stay up to date!

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Tom Tunguz

MAY 31, 2022

A broad software buyer index would be the best metric to understand how buyer preferences are changing across the market. Large SaaS and IaaS vendors are precisely that: indexes of software buyers. Microsoft Azure. Google Cloud Platform. Q-4 CAGR means the compound annual revenue growth rate for four quarters ago.

Azure 189

Azure Software Startup Cloud 189

Clouded Judgement

JUNE 9, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Let’s take a look back at the 6 main consumption players in software and how they preformed. Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong.

Trends 130

Trends Cloud Azure AWS 130

Clouded Judgement

NOVEMBER 10, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Datadog Gives Software the All Clear? This week software stocks shot up on Tuesday, largely a result of Datadog’s quarterly earnings. This doesn’t mean the rest of the software universe will follow suite.

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

Clouded Judgement

MAY 26, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Azure / Confluent / Datadog reported a few weeks back (they all had March quarter ends), and their commentary suggested the worst was behind us. Revenue multiples are a shorthand valuation framework. Follow along to stay up to date!

Cloud 141

Cloud Azure Trends Retention 141

Clouded Judgement

FEBRUARY 3, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Then we had the Fed meeting this week creating a huge move in the software market. This was part of the big move in software on Wednesday / Thursday? Not much software was owned. Follow along to stay up to date! Market Offsides.

Cloud 130

Cloud Azure AWS Generative AI 130

Tom Tunguz

JANUARY 23, 2023

I’m watching public company earnings to identify early weaknesses in the software market. The transcript highlights the major trends in software of 2023. We saw moderated consumption growth in Azure and lower-than-expected growth [elsewhere]. Massive software vendors are indexes of buyer behavior.

Azure 234

Azure Underperforming Technical Team Machine Learning Artificial Intelligence 234

Tom Tunguz

APRIL 25, 2023

I’m watching public company earnings to identify early trends in the software market to inform startups’ plans for 2023. Google Cloud Platform (GCP) & Microsoft Azure had strong quarters with about 28% annual revenue growth each. The total customer count for Azure’s OpenAI has grown dramatically.

AI Search 191

AI Search AI Azure GCP(Google Cloud Platform) 191

Tom Tunguz

JULY 25, 2023

I’m watching public company earnings to identify early trends in the software market to inform startups’ plans for 2023. At last, we see a change in slope in the annual growth rates of the cloud services. Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next.

Azure 196

Azure GCP(Google Cloud Platform) AI Cloud 196

Clouded Judgement

FEBRUARY 17, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. Datadog Quarter Datadog is one of the software darlings. As you can tell, there’s a BIG drop-off projected in 2023 Like Azure, they called for a big slowdown of consumption trends in the month of December. Top 5 Median: 11.6x

Cloud 130

Cloud Azure Revenue Subscription 130

SaaStr

NOVEMBER 3, 2022

Our mission is to build powerful and secure cloud software for subscription businesses of all sizes, with a strong emphasis on good design and ease of use. Maast offers payments, banking, lending and more as features in software provider’s platforms – with one relationship, contract and integration.

Payments 221

Payments Payment Services GCP(Google Cloud Platform) Payment Solutions 221

SaaStr

MARCH 31, 2022

Jessica Alexander, Senior Director Cloud Technology & OEM Partnerships, Crowdstrike. So for the audience, cloud giants are turbocharging startup sales, and the predominant reason for this is because they’re fundamentally changing IT budgets at the customers that we’re all selling to. Rico Mallozzi, Sr.

Scale 197

Scale Marketplace as a Service Cloud SaaS Payments 197

Tom Tunguz

NOVEMBER 28, 2023

Snowflake announced earnings yesterday, echoing the strength within software companies more broadly & underscoring the shift in enterprise buyer behavior to normal after three quarters of extensive cost cuts. “Q3 product revenue grew 34% year-over-year to reach $698 million. And we’re seeing the effects of that.

GCP(Google Cloud Platform) 133

GCP(Google Cloud Platform) Azure Data Startup 133

Tom Tunguz

SEPTEMBER 26, 2022

Look no further than the massive companies pushing the public & the private market forward: Snowflake, Databricks, Amazon, Azure, Google Cloud. Cloud databases generated $39b in spend , about half of all database revenue. On October 25th, I’ll share my 10 predictions for data in 2023 at The Impact Data Summit.

Data 222

Data Azure Machine Learning Artificial Intelligence 222

IT World

APRIL 26, 2023

Increased revenue across Microsoft’s cloud computing, Office software, and server segments have helped the tech giant see its net income reach $18.3 The overall company revenue for the quarter increased 7% to $52.9 The changes Microsoft has made to its software offerings have clearly worked in the company’s favor.

Cloud 75

Cloud Azure Subscription Payment Features 75

SaaStr

MARCH 31, 2019

This is pretty darn impressive, and probably more importantly, shows the continued jaw-dropping growth of Cloud. Just four percent of SaaS companies reach $1 million in revenue, and only.04 For the current year, Slack sees revenue of $640 million, up 64%. Buy Microsoft Stock Because of Its Big Cloud Deals, Says JPMorgan.

Cloud 136

Cloud Azure Scale Software Engineering 136

SaaStr

MAY 6, 2022

Many SaaS and Cloud leaders are down more than 50% from their all-time highs. But Covid did create a lot of artificial demand for Cloud products, especially the lockdown phase. Ultimately — revenue multiples. Update on cloud software multiples, charted alongside the 10Y and 5 year pre-covid NTM rev multiple average.

SaaS 331

SaaS Azure Cloud AWS 331

SaaStr

OCTOBER 13, 2022

Our mission is to build powerful and secure cloud software for subscription businesses of all sizes, with a strong emphasis on good design and ease of use. You need an efficient way to keep your customers successful, reduce churn, drive adoption, and increase net revenue retention.

GCP(Google Cloud Platform) 189

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 189

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. TL;DR ISVs develop and distribute software products independently and often collaborate with hardware manufacturers and platform providers. Learn More What are ISVs?

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88