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Clouded Judgement 5.16.25 - Net New ARR Trends

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. Subscribe now Net New ARR Trends We’re about halfway through Q1 ‘25 earnings season. Unfortunately, the trends have not been good! Follow along to stay up to date! For some public companies, they disclose ARR.

Trends 144
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SaaS Is Still Slowing Down, Unfortunately: What Q1 2025 Numbers Reveal About the Cloud Software Market

SaaStr

The trend has been building for over a year, with growth rates oscillating wildly between massive spikes and devastating drops. Customer Success Is Make-or-Break : With new customer acquisition becoming more challenging, retention and expansion within existing accounts becomes critical. We knew that.

Cloud 251
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The Software Industry's Productivity Boom: Analyzing Revenue per Employee Trends

Tom Tunguz

Here are the trends across the group of 13 publicly traded software & infrastructure companies (which are the fastest growers or most-highly valued) over the last 5 quarters. Snowflake is second, pushed by their best-in-class net dollar retention (NDR). I wonder what trends we’ll see in 2033.

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7 Top Trends in Customer Success to Learn From, and Maybe Emulate

SaaStr

Again, NRR (over NPS, CSAT, logo retention) seems to be the core North Star metric for CS today, irrespective of the amount of variable comp. In these models, companies need to have a way to control the quality of new deals; one company measures sales team members based upon the “quality” (adoption/retention) of their new deals.

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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

net retention and CAC payback). Subscribe now Overall Trends When looking at the aggregate net new ARR added in Q1, it doesn’t pain the best picture. On the other hand, if your net revenue retention is 120%, you only need to grow new logo revenue 10% to be a “high growth” business.

Cloud 277
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Usage-Based Revenue Models: Successes and Pitfalls from Checkr COO Lindsey Scrase on CRO Confidential

SaaStr

Improving Rev Ops for Data-Driven Decision Making One of Lindsey’s first priorities was diving deep into the company’s existing data to identify trends and leverage these findings for growth. The results speak for themselves – Checkr now maintains incredibly strong retention rates with GRR in the high nineties.

Revenue 286
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5 Interesting Learnings from Okta at $2.75 Billion in ARR

SaaStr

Net Retention Compression: From 122% to 106% The Numbers : NRR dropped from 122% (Q2 FY23) to 106% (Q1 FY26) – a 16 point decline over 3 years The Learning : Plan for 4-6 points of NRR compression annually once you hit $1B+ ARR. The Learning : At scale, customer count growth in your premium tier matters more than total customer adds.

Scale 230