Clouded Judgement

DECEMBER 9, 2022

Every week I’ll provide updates on the latest trends in cloud software companies. I went back and looked at the last ~50 software IPOs and benchmarked them across a number of metrics. Subscribe now Share Clouded Judgement Leave a comment Follow along to stay up to date! Can High Growth Businesses Become Profitable?

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

Clouded Judgement

APRIL 12, 2023

Q4 earnings season for cloud businesses is now behind us. Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. As you can see from the data below most cloud businesses beat the consensus estimates for Q4. net retention and CAC payback). This is quite interesting.

Cloud 161

Cloud Software Benchmarks Retention 161

Tom Tunguz

NOVEMBER 18, 2021

Using a linear regression on current cloud valuations and a combination of key metrics, about 41-42x which implies about $28-$32b. All this results in a tremendous business that has achieved about $500m in ARR in just six years. How much will Samsara be worth in the public markets?

CTO Hire 356

CTO Hire CTO Coach Benchmarks Scale 356

Clouded Judgement

JUNE 20, 2023

Q1 earnings season for cloud businesses is now behind us. Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. As you can see from the data below most cloud businesses beat the consensus estimates for Q1. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Scale 161

Tom Tunguz

MARCH 2, 2024

This is a chart of many recent AI models’ performance according to a broadly accepted benchmark called MMLU. But pretty quickly, the infrastructure layer should commoditize, just as it did in the cloud where three vendors command 65% market share : Amazon Web Services, Azure, & Google Cloud Platform. 3/15/22 175 0.7

AI 197

AI Azure ChatGPT Benchmarks 197

Clouded Judgement

DECEMBER 20, 2022

Q3 earnings season for cloud businesses is now behind us. Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. As you can see from the data below most cloud businesses beat the consensus estimates for Q3. net retention and CAC payback). This is quite interesting.

Cloud 130

Cloud Software Review Software Benchmarks 130

SaaStr

DECEMBER 14, 2023

HashiCorp __ Mary is a partner at Bessemer, where she primarily focuses on cloud software investments. She also developed Bessemer’s Cash Conversion Score and authors the annual Cloud 100 Benchmarks Reports. She serves as a board member or observer for Teleport, Netlify, Imply Data, LaunchDarkly, GetInsured, and Contractbook.

Venture Capital 216

Venture Capital Benchmarks Cloud compliance 216

Kellblog

JUNE 10, 2021

This is a quick post to share the slides I presented today at the GainSight Pulse Everywhere 2021 conference in a session entitled Net Dollar Retention, Key Benchmarks at $50M, $200M, and $1B in annual recurring revenue (ARR). In the session we discuss: The answer, which is 104%. Median NDR which is surprisingly invariant across size.

Benchmarks 109

Benchmarks Retention Subscription Payment Features 109

Unbounce

APRIL 15, 2021

That’s where industry benchmarks come in—and that’s why we’re thrilled to bring you a fresh (and free) Conversion Benchmark Report for 2021. Introducing the 2021 Conversion Benchmark Report. Or how your uncle’s cybersecurity software converts against your great aunt’s cloud accounting platform. Quite a family you have.).

Benchmarks 145

Benchmarks Machine Learning Artificial Intelligence AI Search 145

SaaStr

NOVEMBER 15, 2023

jasonlk) November 13, 2023 Not every area of SaaS and Cloud is seeing big “macro” impacts. Consistently Strong NRR — And Higher Than 2022 Crowdstrike has targeted a 120% NRR benchmark and it’s interesting to see how it’s fluctuated blow over the past 5+ years. 5 Interesting Learnings: #1.

Cybersecurity 257

Cybersecurity AWS Benchmarks Cloud 257

SaaStr

SEPTEMBER 19, 2023

Change #1: A Very Clear Uptick In Product-Led Growth Strategies If you look at Notion Capital’s Cloud challengers, 35% are working on a PLG growth strategy. It’s hard to measure if you don’t have profitability, but the Cloud Challengers are growing their headcount in a range of 0-33%, which is astonishingly low for a tech startup.

Business Model 247

Business Model SaaS Payments Payments Headcount 247

Clouded Judgement

JUNE 5, 2023

Here are some of the key monetary policy actions taken by the Fed in response to the pandemic: Lowering Interest Rates : In March 2020, the Fed cut its benchmark interest rate, the federal funds rate, to near zero. This was intended to lower borrowing costs and encourage businesses and consumers to spend and invest.

Payment Services 169

Payment Services Cloud Government Banking 169

SaaStr

APRIL 27, 2023

I was curious the other day how many of the recent Cloud and SaaS IPOs had founders that were equal co-founders from an equity perspective. Overall, I learned a lot from this exercise: Only 4 of the top recent Cloud/SaaS IPOs had equal or equal-ish co-founders in terms of equity. Some interesting benchmarks here for you to think about.

SaaS 243

SaaS Cloud Benchmarks Data 243

OPEXEngine

JUNE 14, 2022

BOSTON, June 13, 2022 – OPEXEngine, the world’s leading SaaS benchmarking platform, today launches its new R&D benchmarks solution. The benchmarks help technology executives invest in R&D with more confidence by comparing their own costs and performance with similar organizations.

Technical Review 45

Technical Review Benchmarks Outsourcing Services Development Team Review 45

Tom Tunguz

SEPTEMBER 7, 2023

While benchmarks are often fraught with nuances, the consensus amongst testers is Nvidia is about 3x faster to run these models. This hybrid architecture will allow some usage when not connected to the Internet, but take advantage of a cloud when available. I wondered how slower Mac hardware is compared to Nvidia.

Machine Learning 185

Machine Learning Artificial Intelligence Cloud Benchmarks 185

OPEXEngine

SEPTEMBER 15, 2021

OPEXEngine provides SaaS and Software companies with comprehensive and accurate analytics and benchmarks to help executives understand and improve operational performance. Investors and software company management need high quality and neutral benchmarks to assess their operational performance, reduce risk and improve efficiency.

Software Review 52

Software Review Benchmarks Technical Review Development Team Review 52

Tom Tunguz

FEBRUARY 24, 2016

In particular, I benchmarked the revenue, growth rates and round size characteristics of these businesses at their Series A. Benchmarking Exceptional Series A SaaS Companies from Tomasz Tunguz. At SaaStr 2016 and SaaS Office Hours in New York , I shared an analysis of the fastest growing SaaS companies over the last 3 years.

Benchmarks 100

Benchmarks SaaS Pricing Investment 100

Chaotic Flow

NOVEMBER 11, 2014

As many of you may know, Trish Bertuzzi and the folks over at the Bridge Group publish a lot of great stuff on Inside Sales strategy and operations, including inside sales compensation benchmarks, lead development rep best practices, outbound selling strategies, and on an on.

Benchmarks 125

Benchmarks Compensation Sales SaaS 125

Andreessen Horowitz

DECEMBER 4, 2023

And, especially when you’re considering integrating a new technology platform into your business—like AI today, or cloud a decade ago—how do you invest in innovation without losing control of your runway and budget? Map your spend to your product roadmap, then attach an expected ROI and timeline for the expected return.

Underperforming Technical Team 122

Underperforming Technical Team Benchmarks CTO Hire New CTO 122

OPEXEngine

JUNE 29, 2020

Benchmark the health of your SaaS company, and. It depends, assuming you run your service from AWS or a similar cloud platform, we recommend using EBITDA — since your COGS scales with your revenue, and your gross margin is pretty consistent, this metric should be sufficient. A final word on the Rule of 40. Sources: [link].

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

OPEXEngine

JUNE 4, 2020

Last week we published the most recent SaaS & Software benchmarks in our platform used by companies in their FP&A analyses for management, boards and investors. In the 2020 Benchmarks, we added a number of new benchmarks around compensation expense, plus, a measure of the SaaS Cash Conversion Rate, popularized by Bessemer.

Benchmarks 45

Benchmarks SaaS Technical Review Software Review 45

Audacix

DECEMBER 3, 2022

Ensuring data security in the cloud is the responsibility of all parties involved. Both cloud service providers and their clients should use the best SaaS security best practices to protect data. Cloud consumers are tasked with providing security for the endpoints they use to access SaaS applications.

Cloud 52

Cloud Software SaaS Software Development 52

SaaStr

FEBRUARY 20, 2021

Sign up here : #2. “State of the Cloud 2021 with Bessemer Venture Partners” This is the 5th time we’ve partnered with Bessemer on their annual State of the Cloud report. It’s always a crowd favorite!! Sign up here. #3.

Benchmarks 164

Benchmarks Cloud Enterprise Scaling 164

SaaStr

OCTOBER 31, 2019

Bessemer Venture Partners’ Alex Ferrara takes a look at trends and predictions for the cloud industry in 2019. One of the most popular sessions from SaaStr Annual, this presentation will provides an in-depth look at the cloud computing industry across Europe and globally. Want to see more content like this? A few more.

Cloud 100

Cloud Scale AWS Machine Learning 100

SaaStr

SEPTEMBER 19, 2019

I was curious the other day how many of the recent Cloud and SaaS IPOs had founders that were equal co-founders from an equity perspective. Overall, I learned a lot from this exercise: Only 3 of the top recent Cloud/SaaS IPOs had equal co-founders in terms of equity. Some interesting benchmarks here for you to think about.

SaaS 200

SaaS Cloud Benchmarks Development 200

Tom Tunguz

DECEMBER 16, 2021

We can benchmark them relative to their corporate value. 1] The base data is the basket of publicly traded cloud companies as of the date of writing. The profit and loss statement of a business records the quantum on the Selling & Marketing Expenses line. Until then, buidl and hodl. – Footnotes. [1]

Venture Capital 255

Venture Capital Blockchain Acquisition Benchmarks 255

SaaStr

FEBRUARY 9, 2022

Bessemer was always a top-tier fund, for example, but over the past decade, has become one of the top Cloud investors there is. Getting Sequoia or Benchmark to lead your Series B or C is just as valuable for your brand as leading an earlier round. Also, importantly. you can also get that brand-name VC on your cap table later.

Branding 224

Branding Benchmarks Cloud Investment 224

Clouded Judgement

APRIL 4, 2024

There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. RSC delivers a cloud native SaaS platform that detects, analyzes, and remediates data security risks and unauthorized user activities.

Benchmarks 117

Benchmarks Data Cybersecurity Cloud 117

Clouded Judgement

AUGUST 25, 2023

There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. ” Benchmark Data The data shown below depicts how the Klaviyo data compares to the operating metrics of current public SaaS businesses.

Benchmarks 246

Benchmarks Artificial Intelligence Data Software Review 246

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. But benchmarks alone are not enough. We’ve got to make the leap from benchmarks to action. Here’s our advice on how to use the benchmark data to grow even faster in 2020. Make profitability a 2020 priority.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

Tom Tunguz

APRIL 2, 2017

18% of their customers run Cloudera software in the cloud, a surprisingly large number. Last week, the company filed their S-1 and revealed a massive business. Cloudera generated $261M in revenue, counts 500 clients and grows those accounts by 43% annually. Hortonworks is Cloudera’s chief competitor.

Benchmarks 100

Benchmarks Metrics Software Review Scale 100

OpenView Labs

MAY 24, 2021

In OpenView’s 2020 SaaS benchmarks , we pointed out that public markets were starting to take notice of product-led companies. ” Bessemer called product-led growth one of “three GTM strategies top cloud companies employ in the New Normal” in their State of the Cloud report. Veeva makes a great case study.

Scale 98

Scale Headcount Sales Hiring Benchmarks 98

Neil Patel

MAY 4, 2021

New advancements in cloud computing technology have made remote, cloud-based data storage and management easier to use and more accessible. Data as a service uses a cloud computing strategy to make business data readily available to stakeholders and third parties. Data as a service (DaaS) is becoming increasingly popular.

Marketplace as a Service 76

Marketplace as a Service Data Technical Review Marketing 76

SaaStr

DECEMBER 21, 2023

PST, Jamin Ball, Partner at Altimeter Capital and author of Clouded Judgement , took us through the current state of SaaS and what we should expect in 2024. At the same time, the 10-year benchmark rate has gone from 2.2% At Workshop Wednesday, held every Wednesday at 10 a.m. today, so the ten-year is up almost double.

SaaS 248

SaaS Software Metrics Revenue 248

Unbounce

MAY 29, 2020

” That’s where industry benchmarks come in—and that’s why we’re thrilled to bring you a fresh (and free) new version of our Conversion Benchmark Report. . Benchmarks can energize your digital marketing strategy in three big ways: They’re a form of competitive intelligence. Introducing the 2020 Conversion Benchmark Report.

AI 145

AI Machine Learning Artificial Intelligence Benchmarks 145

OPEXEngine

JULY 27, 2021

It is an exclusive meeting limited to Finance executives benchmarking with us and governed by Chatham House Rules. The SaaS Finance MeetUPs help provide context for our benchmarking community to the OPEXEngine benchmarks and content that we develop. Digitally enabled lean processes.

Finance 52

Finance Outsourcing Services Scaling SaaS 52

OPEXEngine

JANUARY 17, 2020

Downward trending cost of goods (COGs) benchmarks are improving SaaS gross margins. Cloud operations / Platform Maintenance. The latter is also described as hosting, managed services, cloud operations, functionality of the platform/data centers, and computing infrastructure often provided by third parties. Customer support.

Outsourcing Services 53

Outsourcing Services Trends Outsourced Development Technical Review 53