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SaaS Is Still Slowing Down, Unfortunately: What Q1 2025 Numbers Reveal About the Cloud Software Market

SaaStr

Down nearly 30% YoY from Q1 last year pic.twitter.com/9MLyLe3XXf — Jamin Ball (@jaminball) June 5, 2025 Bottom Line Up Front : The aggregate cloud software market just delivered its worst quarterly performance in years, with net new ARR additions plummeting nearly 30% year-over-year in Q1 2025. billion in Q1 2025 , down from $2.33

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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

Q1 ‘25 earnings season for cloud businesses is now behind us. And no, this wasn’t all because of leap year last year (that would only account for a ~3% delta at most) The Hyperscalers (AWS, Azure, Google Cloud) also declined net new adds year over year, but not by as much. Net new ARR added was down 28% from Q1 last year.

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Top SaaStr Posts, Pod and Vids of the Week: Jason Lemkin + Dave Kellogg, State of the AI Cloud, New CRO Confidential, and More!!

SaaStr

Top SaaStr Posts of the Week: #1. “A Lot of Great Sales Leaders — Just Aren’t Great at Selling Anymore. And Why You Really Need a VP of Sales, and Not a CRO.” The Cloud Bubble Lasted About 18 Months. Dear SaaStr: What’s the #1 Reason You See Sales Reps Fail These Days? ” #2. appeared first on SaaStr.

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The Top 10 SaaStr Videos and Podcasts of the Year: CEOs of Rippling, Klaviyo and Automattic; YCombinator’s Secrets; State of AI Cloud; and More!

SaaStr

We’re on the top 1% on Spotify overall and just added video there, and our YouTube has become a great stream of the best of the best in SaaS, Cloud and AI. From Zero to Hero: How to Dominate Outbound SaaS Sales with Rippling and Sam Blond #4. State of the Cloud 2024: The Cloud AI Era with Bessemer Venture Partners #9.

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2 Simple Edges Anyone Can Get in Sales. And Pull Ahead of the Pack.

SaaStr

Want to know how to be better than 95% of the world in SaaS sales? The 2 simple edges in sales: #1. Be a True Product Expert 95% of the sales reps I talk to don’t even really understand the products they are selling. The founders though left the sales rep in the lobby at the customer. Honestly it’s easy.

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The Top SaaStr Posts, Videos and Podcasts of the Week: Bessemer’s AI State of the Cloud, CEO Klaviyo, CROs of Rippling and Slice, and More!

SaaStr

. “Ramp: Actually, We’re Mostly Buying the Same Standard Stuff — HubSpot, Zoom, Slack, Zoominfo and Carta” #4. “My Best Advice for CROs/VPs of Sales That Are Ready to Be CEOs” #5. “5 Common Pieces of SaaS Advice … That Are Often Wrong” YouTube and Pod: #1. appeared first on SaaStr.

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4 Unexpected Learnings from Databricks’ Sales Growth Machine From Its VP of Sales

SaaStr

A little ways back Databricks VP of Sales Heather Akuiyibo joined SaaStr to share unexpected things that work well at Databricks GTM organization as well as some things that havent worked as well. Deep Dive: Unexpected Learnings Time Management as Competitive Advantage Most sales organizations guess how reps should spend their time.

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