Clouded Judgement

FEBRUARY 2, 2024

” Microsoft on Azure : “And I think last quarter, we said one, we are going to continue to have these cycles where people will build new workloads. They also are seeing AI revenue (largely compute) show up sooner than anyone else. Revenue multiples are a shorthand valuation framework. Top 5 Median: 17.2x

Cost optimization & reporting 161

Cost optimization & reporting Cloud Azure AWS 161

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 183

Cost optimization & reporting Cloud Software Azure 183

Tom Tunguz

MAY 31, 2022

Amazon Web Services and Azure, the business units inside Amazon and Microsoft serve and sell to small, medium, and large companies in every major geography. Microsoft Azure. Here are the revenue growth rates for these businesses broken out by software and infrastructure. Fortunately, it exists. So do Salesforce. ServiceNow.

Azure 197

Azure Software Startup Cloud 197

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

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. Office 365 Copilot, for example, doesn’t go live until November and we most likely won’t see meaningful revenue from it until next year. Overall Stats: Overall Median: 5.7x

Cloud 161

Cloud Azure AWS Software Review 161

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

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 161

Cloud Software GCP(Google Cloud Platform) Azure 161

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

Tom Tunguz

FEBRUARY 13, 2023

Large customer revenue contribution increased again sequentially to 63% of revenue, up from 57% in the fourth quarter last year. 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 225

Cloud Azure Headcount Software Review 225

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. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Top 5 Median: 16.1x

Cloud 130

Cloud Azure Cost optimization & reporting AWS 130

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). Overall Stats: Overall Median: 5.2x

Cloud 130

Cloud Azure AWS Cost optimization & reporting 130

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. The bars represent the YoY revenue growth, and the yellow line is the stock price.

Cloud 130

Cloud Azure AWS GCP(Google Cloud Platform) 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%. Revenue multiples are a shorthand valuation framework. Follow along to stay up to date!

Cloud 141

Cloud Azure Pricing Subscription 141

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) 183

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 183

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 130

Cloud Azure AWS GCP(Google Cloud Platform) 130

Clouded Judgement

AUGUST 11, 2023

The good news is gross retention (ie churn) stayed constant. 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 Revenue multiples are a shorthand valuation framework.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

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. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Top 5 Median: 13.0x

Cloud 141

Cloud Azure Trends Retention 141

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. It might be more competitive and secure revenue longer-term to put the commitment element on top of a compensation plan.

Compensation 159

Compensation Sales Azure AWS 159

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. Bucketed by Growth.

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

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. Beating consensus revenue estimates is the first aspect of a successful quarter. Subscribe now Do We See a Light at the End of the Tunnel?

Cloud 161

Cloud Software Benchmarks Scale 161

SaaStr

NOVEMBER 4, 2021

In simple terms, the “Rule of 40” states a healthy SaaS company’s a) revenue growth rate plus b) profit margin should exceed 40%. . In equation form, Revenue Growth % + Profit Margin % > 40%. ” Year after year of lower sales and marketing costs and better customer retention really adds up.

SaaS 251

SaaS Technical Review Benchmarks Azure 251

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. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 130

Cloud Azure AWS Generative AI 130

Clouded Judgement

NOVEMBER 3, 2023

Pure revenue multiples are trading at a 31% discount to their long term average (5.4x Maybe with the exception of hyperscalers (particularly Azure). 4x NTM revenue for Confluent sounds super cheap. Revenue multiples are a shorthand valuation framework. That’s a huge move up for the index! So what’s going on??

Software Review 161

Software Review Cloud Software Azure 161

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. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 130

Cloud Azure Revenue Subscription 130

Chart Mogul

DECEMBER 20, 2022

Product analytics, customer data or user feedback from your CRM, as well as revenue analytics, all play an essential role in understanding and growing your business. See future changes to your recurring revenue with CMRR. Net and Gross MRR Retention Rates. But that’s just cloud storage and data warehouse destinations!

Systems Review 52

Systems Review Payments Payment Solutions Azure 52

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. Public usage-based companies are trading at a 50% revenue multiple premium over their peers. Snowflake in particular is off the charts with a 158% net dollar retention.

Scale 98

Scale Pricing Scaling AWS 98

Chart Mogul

JUNE 16, 2022

Now you can send revenue and subscription data associated with your customer in ChartMogul directly to Intercom. Now you can send revenue and subscription data associated with your customer in ChartMogul directly to Intercom. Improve retention with MRR-based onboarding.

Payments 52

Payments Data Azure Payment Methods 52

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. Have revenue, but early, so like 50K ARR after two months of charging for a product.

Scale 187

Scale SaaS Payments Scaling SaaS 187

OPEXEngine

DECEMBER 7, 2021

The pricing model, which leads to increases or decreases in revenue based on how much customers engage with a service, has been gaining on the more traditional subscription model as the main way SaaS companies make money. It has tended to be used most in infrastructure platforms, like AWS, Google Cloud, and Azure.

Subscription 52

Subscription Payment Features Pricing SaaS 52

ProfitWell

SEPTEMBER 10, 2020

SaaS revenue is expected to reach $143.7 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. Later, you'll be able to track annual recurring revenue as well.

SaaS Payments 66

SaaS Payments Trends Merchant Services Payments 66

Chart Mogul

APRIL 7, 2022

Grow your recurring revenue with ChartMogul. Both can calculate MRR, churn, and ARPA – but only one can act as a hub of revenue data. Customer churn (or retention) cohorts allow you to see how subscriptions perform over time, relative to the starting month or the previous month. Growing a subscription business is hard work.

Payment Features 52

Payment Features Systems Review Churn Azure 52

Audacix

AUGUST 11, 2023

Here the "worm" is being well prepared to ensure your company stays compliant with this far-reaching legislation and avoids penalties, the goliath among which is the fine of 4% of your company's global revenues! Restrict access and establish retention timelines. Examples include: Veronis, Azure Purview, AWS Macie.

Outsourcing Services 52

Outsourcing Services Technical Review Cybersecurity Data 52

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. So again, when you start a company and then now we’ve scaled it to in 2019 we did about 287 million in revenue last year. So just to give you a sense of going from zero to 287 million in revenue last year.

Sales Hiring 164

Sales Hiring Outsourcing Services Scale Sales Recruiting 164

SaaStr

SEPTEMBER 13, 2020

If you look at the IAS vendors, they passed $130 billion revenue milestone this year. Azure has been gaining on them rapidly and is growing a double that rate. What that does is not only did it accelerate the top line revenue for Shopify, but it dramatically opened up their total addressable market on a revenue basis. .

Sales Hiring 152

Sales Hiring Scale Payments Cloud 152

SaaStr

AUGUST 22, 2020

This will be a really strong indicator of retention and recruiting. I think that there is probably another couple orders of magnitude of growth in these markets, which is why I don’t get that energized by like, “Okay, is Azure in the lead? You’re just now seeing that play out. Is AWS in the lead?

Sales Recruiting 144

Sales Recruiting Cloud CTO Hire Scale 144