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. This is for information purposes and should not be construed as an investment recommendation. Altimeter is an investment adviser registered with the U.S. Securities and Exchange Commission.

Cloud 161

Cloud Azure AWS Software Review 161

Clouded Judgement

MAY 10, 2024

All 3 (AWS, Azure, GCP) saw positive reacceleration 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. Securities and Exchange Commission.

Cloud 161

Cloud Software GCP(Google Cloud Platform) Azure 161

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

APRIL 28, 2023

AWS (Amazon), Azure (Microsoft), and Google Cloud (Google) all reported this week. Azure reported on Tuesday and gave us that glimmer of hope. Azure : Coming into the quarter, a growth rate that would have satisfied the market would have been ~29%. Azure came in at 31% (constant currency). Follow along to stay up to date!

Cloud 130

Cloud Azure AWS AI Search 130

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) 195

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 195

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).

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

Clouded Judgement

JUNE 9, 2023

Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong. Usage on Snowflake is driven by queries run on Snowflake Azure: Neutral Tone With Strength in AI Overall I’d characterize Azure’s quarter as a net positive.

Trends 130

Trends Cloud Azure AWS 130

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. Then Q2 came in at 12% (must have seen improvements throughout the quarter). And most importantly, they’ve seen these positive trends continue.

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

Clouded Judgement

JANUARY 27, 2023

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

Cloud 141

Cloud Azure Pricing Subscription 141

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. This week we had two of the hypserscalers report (Microsoft / Azure and Google / GCP), and everyone was eager to see their results. Lots to unpack, I’ll hit on a couple of my favorite topics from this week below.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

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. Q1 Earnings Season We’re on the eve of Q1 earning season. The Q4 ‘22 growth rate was 38% YoY.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

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. That way, they know what growth to expect and what incremental uplift they’re getting from having sales involved so they can continue to make better investments. This is MongoDB’s approach.

Compensation 164

Compensation Sales Azure AWS 164

Clouded Judgement

AUGUST 11, 2023

The good news is gross retention (ie churn) stayed constant. If next quarter we get similar commentary that Azure gave us this quarter (“still a couple quarters away” without any specific guidance), then we may see market loose a little patience. The weakness they called out was from larger cloud-native businesses.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

SaaStr

NOVEMBER 4, 2021

” Year after year of lower sales and marketing costs and better customer retention really adds up. As a result, maintaining the same “Rule of 40” score requires 1% of extra revenue growth for 1% of profit margin investment. You can’t pay your Azure bill or office lease in “Rule of 40” points.

SaaS 269

SaaS Technical Review Benchmarks Azure 269

Clouded Judgement

MAY 26, 2023

Azure / Confluent / Datadog reported a few weeks back (they all had March quarter ends), and their commentary suggested the worst was behind us. This means we got commentary for the first time on May trends. As many of you know, the data points I’m looking for are any signs of consumption trends starting to tick back up.

Cloud 141

Cloud Azure Trends Retention 141

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. Altimeter is an investment adviser registered with the U.S.

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

Intercom, Inc.

DECEMBER 31, 2019

The most triumphant transfer of control from an original generation leader to a new CEO was surely that of Microsoft, which pivoted from chasing after Apple’s success in the consumer space under Steve Ballmer (don’t mention Nokia ) to successfully focusing on the cloud under Satya Nadella (please do mention Azure).

Payment Solutions 259

Payment Solutions Payment Methods Software SaaS Payments 259

Clouded Judgement

NOVEMBER 3, 2023

Maybe with the exception of hyperscalers (particularly Azure). This is for information purposes and should not be construed as an investment recommendation. Altimeter is an investment adviser registered with the U.S. It’s actually the complete opposite - there will be more deceleration in Q4 (according to guides).

Software Review 161

Software Review Cloud Software Azure 161

Clouded Judgement

JUNE 20, 2023

net retention and CAC payback). On the Microsoft earnings call they said (related to Azure): “But at some point, workloads just can't be optimized much further. On the other hand, if your net revenue retention is 120%, you only need to grow new logo revenue 10% to be a “high growth” business.

Cloud 161

Cloud Software Benchmarks Scale 161

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

OpenView Labs

FEBRUARY 9, 2021

Though it was pioneered in the infrastructure layer (think: AWS and Azure), it’s becoming increasingly popular for API-based products and application software. And of the IPOs over the last three years, seven of the nine that had the best net dollar retention all have a usage-based model. Land-and-expand is real.

Scale 98

Scale Pricing Scaling AWS 98

Clouded Judgement

FEBRUARY 17, 2023

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. However, they guided for 2023 and called for 23-24% growth. The graph below shows their annual growth (and projected 2023 growth) for the last few years.

Cloud 130

Cloud Azure Revenue Subscription 130

Tom Tunguz

APRIL 25, 2024

Microsoft’s Azure is winning share directly from Amazon. “The number of $100 million-plus Azure deals increased over 80% year-over-year, while the number of $10 million-plus deals more than doubled. " The rest of Azure is still growing in a nice clip of 24% annually. “We now have 1.8 “We now have 1.8

Azure 187

Azure AI Search Marketing ChatGPT 187

ProfitWell

SEPTEMBER 10, 2020

Running your own server to handle your customer's valuable data requires a huge investment to match the same level of security and reliability that comes baked into services like Amazon AWS and Microsoft Azure cloud. Double down on retention. Yet, many SaaS businesses do not spend enough time focusing on retention.

SaaS Payments 66

SaaS Payments Trends Merchant Services Payments 66

SaaStr

AUGUST 12, 2022

If you didn’t catch it the other day … and you can read about it on SaaStr …Microsoft and Google Cloud both had extremely strong quarters, Microsoft Azure grew 40% last quarter , and a record number of nine-figure and billion-dollar deals. They’ve cut the amount they want to invest.

Scale 199

Scale SaaS Payments Scaling SaaS 199

User Pilot

APRIL 30, 2024

This article will look at the most successful SaaS companies, so you can decide if you want to invest in them for your business. Appcues enhances user onboarding, adoption , and retention with targeted walkthroughs, in-app messaging, and feature adoption tools. What are the benefits of the SaaS model? ActiveCampaign email dashboard.

SaaS Payments 78

SaaS Payments Payment Services Payment Methods Payment Solutions 78

Audacix

AUGUST 11, 2023

But you should also be able to use these penalties to make a strong business case for reasonable and necessary investment in cyber security within your organisation. Restrict access and establish retention timelines. But the list below should help you understand which types of automation you will eventually need to invest in.

Outsourcing Services 52

Outsourcing Services Technical Review Cybersecurity Data 52

Full Session

NOVEMBER 16, 2022

Increasing retention rates. Mixpanel also offers a decent list of integrations, with over 50 apps, including Amazon Web Services, Microsoft Azure, Google Cloud, Hubspot, Slack, Snowflake, and Zendesk. Bigger businesses will probably want to invest in a paid plan. The plan includes 45 days of data retention.

Software Review 52

Software Review Sales Hiring Technical Review Underperforming Technical Team 52

Chart Mogul

APRIL 7, 2022

Customer churn (or retention) cohorts allow you to see how subscriptions perform over time, relative to the starting month or the previous month. Then you can use these custom attributes to determine which groups of customers have the highest ARPA, LTV, retention rates, and more. Data output and integrations. Buffer CEO Joel Gascoigne.

Payment Features 52

Payment Features Systems Review Churn Azure 52

SaaStr

SEPTEMBER 13, 2020

Azure has been gaining on them rapidly and is growing a double that rate. One of the early co-investments with my prior firm in Bessemer was in Shopify. If you look at companies like Cornerstone OnDemand, which we invested in a long time ago, it took them some time to get to 100 million of ARR. It is staggering.

Sales Hiring 158

Sales Hiring Scale Payments Cloud 158

SaaS Metrics

JUNE 10, 2019

This points to another serious issue i.e. data portability as all the time and money a business invests in a SaaS provider might go to waste. The data deletion policy is defined in the service level agreement and must specify what would happen to the customer data once the data retention period ends. Data Deletion Policy.

VPCs (Virtual Private Cloud) 40

VPCs (Virtual Private Cloud) Technical Review SaaS Systems Review 40

SaaStr

JULY 29, 2020

I mean them an Azure, like they’ve just had tremendous success, but 10 years ago that wasn’t a given. And what that means for your culture because it’s not just growth that drives retention, but it’s also the maintenance in the context of that growth, the maintenance of some baseline of culture and values.

Sales Hiring 173

Sales Hiring Outsourcing Services Scale Sales Recruiting 173