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5 Interesting Learnings from Okta at $2.75 Billion in ARR

SaaStr

The Gross Margin Ceiling Discovery The Numbers : Non-GAAP subscription gross margin plateaued at 83.9% Okta’s hitting this while growing, proving you can scale without proportional headcount growth. vs. total gross margin of 81.9% The Learning : There’s a ceiling to SaaS gross margins (~85% for pure software).

Scale 230
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Clouded Judgement 6.20.25 - The Dropping Cost of Intelligence

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. There are many CEOs, some of very large public companies, who have commented on what AI means for their headcount plans. Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 157
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Clouded Judgement 8.16.24 - The Great Services-To-Software Rotation

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. Today, IT budgets are roughly broken down into: ~50% headcount / personnel, ~25% software, ~15% hardware, and ~10% outsourcing / consultants. As software grows as a percentage, I think we see headcount / outsourcing shrinking.

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Tactics to stay ahead of the curve and boost efficiency with proactive support

Intercom, Inc.

By using technology to detect signals in their product and monitor trends in inbound conversations from customers, workforce management platform Tanda is leveraging proactive support to stay ahead of the curve and offer help to customers before they reach out to the support team. Here’s how they’re doing it.

Scale 237
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Clouded Judgement 12.8.23 - Q3 Earnings Preview

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. Overall, I’d describe the tagline of Q3 software performance as “stabilizing trends with some green-shoots starting to show up.” Follow along to stay up to date!

Cloud 167
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8 Finance Mistakes Growing SaaS Businesses Make and How to Fix Them

SaaSX

This INCLUDES headcount-related expenses. If you are utilizing Gusto or a similar payroll tool, your headcount expenses are likely coming into your P&L as one (or maybe two) line item(s). these figures are going to be WRONG because you haven’t properly accounted for your headcount costs in Sales & Marketing.

Finance 118
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Clouded Judgement 4.7.23

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. That’s a big difference, especially when you layer in the growth in headcount from 2021 to 2022. Essentially companies grew headcount significantly to add less ARR. Follow along to stay up to date!

Cloud 130