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Clouded Judgement 1.6.23

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. Cloud Downgrades This week UBS came out with a couple research reports citing concerns in AWS / Azure growth. We know software is impacted from macro - but how bad will it get? Revenue multiples are a shorthand valuation framework.

Cloud 130
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How Revenue Leaders at Box, Calendly, and Lattice Scaled From $0 to $100M+ and Beyond

SaaStr

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. The bad news is it wasn’t driving the results they wanted.

Scale 216
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Microsoft as a Mirror - What We Can Expect for SaaS in 2023

Tom Tunguz

I’m watching public company earnings to identify early weaknesses in the software market. Segment Expected Growth Productivity 12% Office Commercial 6% Office On-Premise -25% LinkedIn 5% Dynamics 13% Intelligent Cloud 18% Azure 26% Server -3% Services -3% 2. About 70% of commercial Office subscribers use Teams.

Azure 242
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How to Think of R&D Spend

Andreessen Horowitz

Most growth-stage CEOs I work with know how to tell if they’re efficiently allocating capital in every part of their budget with one glaring exception: research and development (R&D). Focus on performance management of your product and engineering teams as early indicators for what R&D investments are working, and which aren’t.

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CEOs of Zapier, Walkme and Dialpad: How to Build Your First Management Team (Video + Transcript)

SaaStr

So let’s take a look back to a deep dive with the CEOs on what they learned building their first senior teams: ———-. As a founder/CEO, building your first management team is something that you often lose sleep over. What makes you feel that you need to level up your management, set up your first management team?

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When Should You Add a Second Product?

SaaStr

Do you have two sales teams? Who gets what part of the long-term development budget? And most importantly, multiple products can be very distracting at the management team level. The new product tends to dominate the discussions, yet by definition, is only a tiny percent of the revenues in the early days.

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Why Do Big Companies Pay Big $$$ To Buy Start-Ups? To Catch Up

SaaStr

Not necessarily in revenue, and often not in their core market. Some examples: Okta basically won the corporate side of identity (rocketed to #1) but wasn’t #1 on the developer side. IBM couldn’t catch up in the Cloud so it bought RedHat, the largest open-source player, RedHat, for $34B. Not a bad play.