Clouded Judgement

DECEMBER 23, 2022

Every week I’ll provide updates on the latest trends in cloud software companies. Here are the four data points: Net New ARR: Net new ARR added in a quarter represents new customer ARR + expansion ARR - churn / contraction ARR. Subscribe now Share Clouded Judgement Leave a comment Follow along to stay up to date!

Cloud 130

Cloud Sales Hiring Trends Subscription 130

Clouded Judgement

SEPTEMBER 12, 2023

Q2 earnings season for cloud businesses is now behind us. Extra pressures around optimizations still exist, however gross churn levels have stabilized, and commentary on earnings calls suggest conversations around new bookings are starting to pick up. We will see this show up in revenue figures in a quarter or two.

Cloud 169

Cloud Software Benchmarks Retention 169

SaaStr

OCTOBER 24, 2021

5 Tips To Minimize “Churn and Burn” Behavior in Your Sales Team. “State of the Cloud with Bessemer Venture Partners” The most recent update on where the Cloud is — and is going. #2. And Most Co-Founders Are Not Equal (And That’s OK). 5 Interesting Learnings from GitLab at $250,000,000.

VP of Engineering 243

VP of Engineering Cloud Scale Churn 243

Clouded Judgement

APRIL 12, 2023

Q4 earnings season for cloud businesses is now behind us. As you can see from the data below most cloud businesses beat the consensus estimates for Q4. This quarter more than half of cloud software businesses missed next quarters consensus. They do this to set themselves up to consistently beat estimates, demonstrating momentum.

Cloud 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

JUNE 23, 2023

Every week I’ll provide updates on the latest trends in cloud software companies. The broader commentary suggests gross churn hasn’t dropped off that much, but expansion revenue has really fallen. Subscribe now Share Clouded Judgement Leave a comment Follow along to stay up to date! Moving to net retention.

Trends 130

Trends Cloud Retention Subscription 130

Clouded Judgement

JUNE 20, 2023

Q1 earnings season for cloud businesses is now behind us. As you can see from the data below most cloud businesses beat the consensus estimates for Q1. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 161

Cloud Software Benchmarks Scale 161

Clouded Judgement

DECEMBER 20, 2022

Q3 earnings season for cloud businesses is now behind us. As you can see from the data below most cloud businesses beat the consensus estimates for Q3. This quarter more than half of cloud software businesses missed next quarters consensus. They do this to set themselves up to consistently beat estimates, demonstrating momentum.

Cloud 130

Cloud Software Review Software Benchmarks 130

Sixteen Ventures

JULY 17, 2020

Is 5% a good monthly SaaS Churn Rate? Read on to learn the answer… As a consultant to SaaS and Cloud providers that are looking to grow, I get asked what an acceptable SaaS churn rate is all the time. ” In 2020 I just say, “let’s make churn a non-issue.” Monthly vs. Annual Churn Rates.

Churn 133

Churn SaaS B2C Pricing 133

SaaStr

FEBRUARY 10, 2022

With each passing year, more and more of our online existence becomes tethered to the cloud. But how does the cloud take shape, and what can companies do to position themselves at the heart of its growing infrastructure? Infrastructure: Reloaded for the Cloud. Pro Tips for Modern Cloud Infrastructure.

Cloud 196

Cloud Venture Capital Social Media Technology 196

SaaStr

DECEMBER 27, 2023

So is it possible to be too efficient in SaaS and Cloud? Digital Ocean is only growing 16% now at $700m ARR, and churn is up and NRR down. Still Pushing ARPU Up, Churn Stable — But NRR Way, Way Down This Year Digital Ocean has small customers and tiny ARPUs, but pushing the ARPU up a bit has a huge impact on a percentage basis.

Scale 226

Scale AWS Azure Cloud 226

Cobloom

NOVEMBER 22, 2021

Negative monthly revenue churn. The pinnacle in any subscription/retainer business, whether you're a PR agency selling service retainers, or a Software-as-a-Service (SaaS) company selling cloud software into the enterprise. What is negative churn?

Churn 101

Churn Revenue Cloud Subscription 101

SaaStr

MAY 22, 2024

OK Gartner is NOT a SaaS or Cloud company. About 104% Effective NRR Gartner sees about -18% gross revenue churn, but price increases add +3% back, and additional research and purchases add +19%. But — it’s one that is very important to many of us that sell into the enterprise. Gartner’s research does. #4.

Revenue 209

Revenue Enterprise Cloud Pricing 209

SaaStr

FEBRUARY 20, 2023

With 100+ public Cloud companies, it’s now a bit clearer that at least after a certain point in time, SaaS vendors have a lot of stability. Second, few SaaS companies past $20m in ARR with negative churn seem to fail. Some do fail, but they are generally ones with low NPS / high churn and other customer issues.

Innovation 299

Innovation Churn Cloud Branding 299

SaaStr

FEBRUARY 27, 2021

This trend has been true for a while, and now both its Service Cloud and its Platform group are bigger and faster growing than the classic CRM product we all know and use. It’s super interesting that today, Salesforce is more of a Service Cloud than a Sales Cloud. Churn Still a Bit Elevated Since Covid.

Deferred Revenue 296

Deferred Revenue Cloud Churn Scale 296

OPEXEngine

NOVEMBER 8, 2022

Usually, customer churn rate is every SaaS company’s worst enemy. But in this article, we’re going to show you how to not only deal with churn effectively but also how you can use your customer churn data as a valuable tool to build your business. Voluntary churn vs. involuntary churn: What’s the difference?

SaaS Payments 52

SaaS Payments Finance Churn Payment Services 52

OPEXEngine

NOVEMBER 8, 2022

Usually, customer churn rate is every SaaS company’s worst enemy. But in this article, we’re going to show you how to not only deal with churn effectively but also how you can use your customer churn data as a valuable tool to build your business. Voluntary churn vs. involuntary churn: What’s the difference?

SaaS Payments 52

SaaS Payments Finance Churn Payment Services 52

SaaStr

NOVEMBER 3, 2022

You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. 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.

Payments 224

Payments Payment Services GCP(Google Cloud Platform) Payment Solutions 224

SaaStr

APRIL 10, 2023

And the key difference market researchers say between Behavioral and Attitudinal loyalty isn’t what you’d expect – the churn rate. The logo churn rate is often similar in the short-term. We buy more modules, e.g. for Salesforce, the Service Cloud, and now, the Marketing Cloud. We take site licenses.

Airlines 242

Airlines Cloud Market Research Customer Success 242

SaaStr

JANUARY 20, 2022

You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. 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.

DevOps as a Service 214

DevOps as a Service AI Search Cloud compliance 214

Tom Tunguz

JANUARY 25, 2021

When products and services fail, customers can’t buy online or use their software, they churn, and the company suffers brand damage. Many businesses are moving their infrastructure and software to the cloud to adopt Kubernetes and microservices. Those technologies offer terrific benefits in exchange for some complexity.

Software 356

Software Cloud Engineering Technology 356

SaaStr

MARCH 22, 2023

So few Cloud software companies have had a more interesting history than UiPath. While UiPath hasn’t yet hit the 20%+ that Wall Street wants for Cloud companies at scale, importantly, it’s on the way. It took them a full 10 years to get to $1m in ARR (!). And then after that, explosion. Targeting 9.5% They were 6% the prior year. #5.

Scale 240

Scale Cloud Scaling Churn 240

SaaStr

MARCH 31, 2021

UiPath is one of the most amazing not-really-an-overnight success stories in Cloud, SaaS and software. It was founded way back in 2005 as an outsourcing company, then developed Windows software to automate scripts and more, and turned this into a powerhouse for automating complex functions integrating Cloud and on-prem. ” #5.

Outsourcing Services 361

Outsourcing Services Outsourced Development Payment Features Cloud 361

SaaStr

JULY 25, 2023

Google Cloud Next: Google Cloud Next (now known as Google Cloud Next ’21) is an event organized by Google Cloud to showcase their latest advancements, product announcements, and customer success stories, impacting the SaaS industry.

ChatGPT 224

ChatGPT AWS SaaS CTO 224

SaaStr

JANUARY 2, 2021

Again, the latest crop of Cloud IPOs shows SMBs seem to have no limit in terms of TAM, with SMB growth at Shopify and Zendesk keeping up with enterprise, and even at Asana, SMB growth is still impressive at $250m ARR. We’ve seen this with almost all cloud leaders except Slack. Revenue growth far outpaced new customer growth.

SMB 342

SMB Enterprise Cloud Churn 342

Chart Mogul

JANUARY 20, 2022

Configure Amazon S3, Google Cloud Storage, or Azure Blob Storage as a destination in ChartMogul and export your activities for further analysis. For that reason, we’re launching several new direct integrations that let you synchronize your MRR movements directly into your Amazon Web Services, Google Cloud Platform, or Microsoft Azure account.

Azure 52

Azure Cloud Forecasting Churn 52

SaaStr

JULY 5, 2023

So some SaaS and Cloud leaders have seen big impacts from the post-Covid hangover, but others have just kept accelerating. That’s about as good as it gets in SaaS and Cloud! Are we near or past the lows in SaaS and Cloud buying patterns? But those accounts grow dramatically over time, and don’t really churn.

Scale 183

Scale cloud efficiency Cloud Business Model 183

Tom Tunguz

MARCH 1, 2021

I thought it would be cloud-prem and customers driving SaaS products to use a single database. Here’s a schematic (click to enlarge) that describes how data flows with a cloud datawarehouse (CDW) fed SaaS app. A data scientist might develop a churn prediction algorithm. This may be the next shift.

Data 363

Data Machine Learning Artificial Intelligence SaaS 363

SaaStr

MARCH 13, 2021

running across multiple clouds. The size and power of the Cloud is just awesome these days. Breathtaking acceleration of MongoDB downloads — a good proxy for acceleration in the Cloud overall. Multi-cloud is one of their top accelerants. Multi-cloud is one of their top accelerants. Mongo shows very.

Scale 297

Scale Outsourced Development Cloud Scaling 297

SaaStr

MARCH 1, 2022

Atlassian has gone almost 100% Cloud since then, and has held up nicely in the overall public markets even as others have taken bigger hits. Cloud product pricing went up 5% a year last year, and legacy server products went up much more. Transition to Cloud takes time at scale. 5%+ pricing increases help fuel growth.

Scale 296

Scale Marketplace as a Service Headcount Cloud 296

Full Session

DECEMBER 4, 2022

For this reason, companies must conduct a customer churn analysis and keep a finger on their churn rate – a statistic that shows the percentage of customers who stopped making purchases from a company. To conduct customer churn analysis, you need specialized tools that help you collect user behavior data. What is customer churn?

Churn 52

Churn Payment Services Payments SaaS Payments 52

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. We built Rubrik Security Cloud, or RSC, with Zero Trust design principles to secure data across enterprise, cloud, and software-as-a-service, or SaaS, applications.

Benchmarks 117

Benchmarks Data Cybersecurity Cloud 117

SaaStr

SEPTEMBER 26, 2019

What we learned from ’08-’09 in SaaS: First, SMB churn went through the roof — as SMBs went under much more quickly and often. Anyone processing a lot of SMB and credit-card deals saw churn probably double. Assume SMB churn doubles — and quickly. Cloud is a tidal wave. Which was brutal.

SaaS Payments 277

SaaS Payments Sales Hiring Scale SMB 277

SaaStr

DECEMBER 27, 2020

New Relic is one of my favorite Cloud stories. Times have changed, the Cloud has gotten a lot bigger, and there are many more vendors, including the red-hot DataDog, to grab mindshare. Do whatever you can to drive up NRR / net negative churn. Today New Relic is worth more than 10x that, at $4.3B. An incredible streak.

Scale 300

Scale Outsourced Development SMB Cloud 300

SaaStr

AUGUST 5, 2020

You know your new growth rate, your new retention rate, your new churn rate. Cloud is on fire. First, maybe model a material uptick in churn going into next year. It can’t hurt to model a return to a higher churn phase next year. SaaS and Cloud can’t escape the mass bankruptcies coming. Build One Now.

Airlines 356

Airlines Government Entertainment Travel 356

SaaStr

JANUARY 24, 2024

Mark Roberge , SaaStr fan-favorite and Co-Founder and Managing Director of Stage 2 Capital brought together some of the top CROs in SaaS during the SaaStr Annual to share some of their greatest learnings and pivotal moments leading some of the Cloud 100 SaaS companies. How do you diagnose and solve churn? Often, they do.

Scale 227

Scale Sales Hiring Scaling Revenue 227

SaaStr

OCTOBER 13, 2022

You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. 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.

GCP(Google Cloud Platform) 192

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 192

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