Azure, GCP(Google Cloud Platform) and Revenue

From $1M to $3B ARR: Databricks CRO Ron Gabrisko on Scaling a Revenue Rocket Ship

SaaStr

FEBRUARY 7, 2025

With Databricks now one of the largest pre-IPO technology companies, with $10 billion of expected non-dilutive financing and a valuation of $62 billion, Ron’s insights are gold for any revenue leader looking to scale. Our founders focused on adoption first, not revenue, Ron explains. The takeaway? The takeaway?

Scale

Scale Sales Hiring Scaling Revenue

Predicting Cloud Growth Rates for 2023

Tom Tunguz

FEBRUARY 2, 2023

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. 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)

GCP(Google Cloud Platform) Cloud AWS Sales Hiring

Microsoft's Billion Dollar AI Business

Tom Tunguz

APRIL 25, 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. In Azure, we expect revenue growth to be 26% to 27% in constant currency, including roughly 1 point from AI services.

AI Search

AI Search AI Azure GCP(Google Cloud Platform)

Webinars

Mastering Apache Airflow® 3.0: What’s New (and What’s Next) for Data Orchestration

MORE WEBINARS

A Look Back at Q1 '24 Public Cloud Software Earnings

Clouded Judgement

JUNE 19, 2024

The charts below show the change in quarterly revenue YoY (so Q1 ‘24 rev - Q1 ‘23 rev) going back to 2017. It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud

Cloud GCP(Google Cloud Platform) Software Azure

The Health of Cloud Spending in Mid-2022

Tom Tunguz

JULY 26, 2022

Today, Microsoft & Google revealed the health of their infrastructure business units. Microsoft Azure. Google Cloud Platform. Microsoft Azure grew 40% y/y, tying the fastest quarterly growth rate in the past 5 quarters. GCP’s data point is less rosy. Amazon Web Services. Good news & bad news.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Cloud Azure AWS

Grey Skies in Cloud Earnings

Tom Tunguz

OCTOBER 27, 2022

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. At a 7x multiple of revenue, that is another $84b of market cap creation, in theory.

Cloud

Cloud GCP(Google Cloud Platform) Azure AWS

Thanks to Bee, ChartMogul, Maast, SecureFrame, and StratusGreen for Sponsoring SaaStr Annual 2023!

SaaStr

NOVEMBER 3, 2022

Maast offers payments, banking, lending and more as features in software provider’s platforms – with one relationship, contract and integration. Which means better customer relationships, more data, and new sources of revenue.

Payments

Payments Payment Services GCP(Google Cloud Platform) Payment Solutions

Signs We've Touched the Bottom

Tom Tunguz

JULY 25, 2023

Both Google & Microsoft announced growth rates in GCP & Azure that held steady from one quarter to the next. Microsoft’s Azure Open AI customer base grew 4x by count, up from 2500 last quarter : We have great momentum across Azure OpenAI Service. The desire for AI is broad.

Azure

Azure GCP(Google Cloud Platform) AI Cloud

Clouded Judgement 10.11.24 - Budget Flush

Clouded Judgement

OCTOBER 11, 2024

As a result, software vendors often see an uptick in revenue and bookings during these periods. Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

Cloud

Cloud Cost optimization & reporting GCP(Google Cloud Platform) Software Review

Thanks to ChartMogul, ChurnZero, Cledara, Secureframe, and Verdane for Sponsoring SaaStr Europa 2023!

SaaStr

OCTOBER 13, 2022

ChurnZero is the Customer Success platform and partner for growing SaaS and subscription businesses. You need an efficient way to keep your customers successful, reduce churn, drive adoption, and increase net revenue retention.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Azure AWS Enterprise readiness

Thanks to Calendly, Drift, Reprise, Secureframe, and Shift Paradigm for Sponsoring SaaStr Annual 2022!

SaaStr

JULY 19, 2022

Using the Drift Conversation Cloud, businesses can personalize experiences that lead to more quality pipeline, revenue and lifelong customers. More than 5,000 customers use Drift to deliver a more enjoyable and more human buying experience that builds trust and accelerates revenue. Usually, it takes a paradigm shift to grow.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Artificial Intelligence Enterprise readiness Azure

Thanks to Demandwell, DuploCloud, Prismatic, SafeBase, and WorkOS for Sponsoring SaaStr Annual 2023!

SaaStr

OCTOBER 6, 2022

We help B2B SaaS marketers turn organic search into a source of repeatable revenue through software and coaching. DuploCloud offers an end-to-end DevOps software platform for dev teams that don’t have dedicated DevOps engineers and augments those that do.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Azure AWS Enterprise readiness

Snow Angels Come Early to Data : Snowflake's Strength Spells Success for Startups

Tom Tunguz

NOVEMBER 28, 2023

“Q3 product revenue grew 34% year-over-year to reach $698 million. “Yes, we actually saw quite a bit of energy coming from the Azure platform this quarter. And as a result, our salespeople are really not inclined to do much in GCP.” Microsoft will launch their Databricks competitor called Fabric soon.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Azure Data Startup

Gartner: SaaS Spending Will Grow Another 40% in Next 2 Years Alone

SaaStr

APRIL 27, 2021

In my 148 public SaaS companies (including most of the categories of this list but not AWS, Azure, GCP) the aggregate revenue is $185B. No matter what, the wave of enterprise spending that fueled 100 SaaS and Cloud unicorns is just getting bigger and strong. This is your time, folks. Go make it happen.

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Azure AWS SaaS

Clouded Judgement 5.3.24 - Hyperscalers Report Q1 + Early Look at Software Reports

Clouded Judgement

MAY 3, 2024

We now have results from the three hypersclaers (AWS / Azure / GCP). Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

Cost optimization & reporting

Cost optimization & reporting Cloud Software AWS

Clouded Judgement 9.27.24 - The Foundation of Foundation Models

Clouded Judgement

SEPTEMBER 27, 2024

Microsoft launched Azure in 2010, and Google launched GCP to the public in 2011 (they launched a preview of Google App Engine in 2008, but made it publicly available in 2011). Revenue multiples are a shorthand valuation framework. Overall Stats: Overall Median: 5.3x Top 5 Median: 15.4x Bucketed by Growth.

Cloud

Cloud GCP(Google Cloud Platform) AWS Azure

Clouded Judgement 8.2.24 - Uncertainty Everywhere

Clouded Judgement

AUGUST 2, 2024

Cloud Giants Report Q2 We also got the Q2 quarters from AWS / Azure / GCP this week! Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

Cloud

Cloud Azure GCP(Google Cloud Platform) AWS

Clouded Judgement 10.28.22

Clouded Judgement

OCTOBER 28, 2022

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. Azure called out an incremental $800m of costs expected throughout the year (they just finished their Fiscal Q1). Top 5 Median: 15.8x

Cloud

Cloud Azure AWS Cost optimization & reporting

Clouded Judgement 8.4.23 - Cloud Giants Q2 Update

Clouded Judgement

AUGUST 4, 2023

You can see more detail about their net new ARR added each quarter below Azure Growth came in at 27%, and guided to 25-26% growth for Q3. That means we very well could see 27% be the bottom for them as well (assuming they beat their guidance). Revenue multiples are a shorthand valuation framework. Top 5 Median: 16.1x

Cloud

Cloud Azure AWS Cost optimization & reporting

Clouded Judgement 5.10.24 - Software Weakness Across the Board

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

Cloud Software GCP(Google Cloud Platform) Azure

Clouded Judgement 5.31.24 - Software Sentiment Crumbles

Clouded Judgement

MAY 31, 2024

” As growth starts to slow, it gets harder and harder to justify using revenue multiples as a primary valuation metric. Any kind of inference really can rack up bills quickly (see growth in hyperscaler revenue…), and AI talent isn’t cheap. Revenue multiples are a shorthand valuation framework.

Cloud

Cloud Software GCP(Google Cloud Platform) AI

Clouded Judgement 4.21.23

Clouded Judgement

APRIL 21, 2023

Next week we get all 3 hyperscalers reporting (AWS from Amazon, Azure from Microsoft, and GCP from Google). Let’s double click on Azure. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud

Cloud Azure AWS GCP(Google Cloud Platform)

Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

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.

Cloud

Cloud Artificial Intelligence GCP(Google Cloud Platform) AI

Clouded Judgement 7.28.23 - Optimization Cycles and Economy Update

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. Satya at Microsoft said “Every AI app starts with data and having a comprehensive data and analytics platform is more important than ever.” However, revenue growth didn’t bottom until Q3 ‘09.

Cloud

Cloud Azure AWS GCP(Google Cloud Platform)

Clouded Judgement 8.11.23 - Datadog Consumption Trends

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

Cloud Trends Azure GCP(Google Cloud Platform)

Tabular: Turning Your Data Swamp into a Data Lakehouse with Apache Iceberg

Clouded Judgement

SEPTEMBER 19, 2023

Typical data lake storage solutions include AWS S3, Azure Data Lake Storage (ADLS), Google Cloud Storage (GCS) or Hadoop Distributed File System (HDFS). ” However, as some of the more modern platforms today push a one-stop shop all-you-can-eat data platform, the risk of lock-in is higher.

Data

Data Government Scale GCP(Google Cloud Platform)

The State of Cloud Marketplaces: A Look into the Data, Trends, and Findings for Software Sellers

OpenView Labs

JANUARY 24, 2022

At Tackle, we have seen our sellers experience huge revenue growth, the product catalog is expanding rapidly for buyers, and budgets are growing at unprecedented rates. So, it’s no wonder that it has been a massive year in the Cloud Marketplace business.

Marketplace as a Service

Marketplace as a Service Cloud Trends Software

Profit Dollars per GPU Dollar

Tom Tunguz

NOVEMBER 4, 2024

“AWS’ AI business is a multibillion-dollar revenue run rate business that continues to grow at a triple-digit year-over-year percentage and is growing more than 3x faster at this stage of its evolution as AWS itself grew, and we felt like AWS grew pretty quickly.” GCP 23 35 52.2% Azure 26 33 26.9%

GCP(Google Cloud Platform)

GCP(Google Cloud Platform) Azure AWS Cloud

SaaS Brief

From $1M to $3B ARR: Databricks CRO Ron Gabrisko on Scaling a Revenue Rocket Ship

Predicting Cloud Growth Rates for 2023

Webinars

Trending Sources

Microsoft's Billion Dollar AI Business

Webinars

A Look Back at Q1 '24 Public Cloud Software Earnings

The Health of Cloud Spending in Mid-2022

Grey Skies in Cloud Earnings

Thanks to Bee, ChartMogul, Maast, SecureFrame, and StratusGreen for Sponsoring SaaStr Annual 2023!

Signs We've Touched the Bottom

Clouded Judgement 10.11.24 - Budget Flush

Thanks to ChartMogul, ChurnZero, Cledara, Secureframe, and Verdane for Sponsoring SaaStr Europa 2023!

Thanks to Calendly, Drift, Reprise, Secureframe, and Shift Paradigm for Sponsoring SaaStr Annual 2022!

Thanks to Demandwell, DuploCloud, Prismatic, SafeBase, and WorkOS for Sponsoring SaaStr Annual 2023!

Snow Angels Come Early to Data : Snowflake's Strength Spells Success for Startups

Gartner: SaaS Spending Will Grow Another 40% in Next 2 Years Alone

Clouded Judgement 5.3.24 - Hyperscalers Report Q1 + Early Look at Software Reports

Clouded Judgement 9.27.24 - The Foundation of Foundation Models

Clouded Judgement 8.2.24 - Uncertainty Everywhere

Clouded Judgement 10.28.22

Clouded Judgement 8.4.23 - Cloud Giants Q2 Update

Clouded Judgement 5.10.24 - Software Weakness Across the Board

Clouded Judgement 5.31.24 - Software Sentiment Crumbles

Clouded Judgement 4.21.23

Clouded Judgement 11.10.23 - OpenAI Updates + Datadog Gives the All-Clear?

Clouded Judgement 7.28.23 - Optimization Cycles and Economy Update

Clouded Judgement 8.11.23 - Datadog Consumption Trends

Tabular: Turning Your Data Swamp into a Data Lakehouse with Apache Iceberg

The State of Cloud Marketplaces: A Look into the Data, Trends, and Findings for Software Sellers

Profit Dollars per GPU Dollar

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