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What Are Public SaaS Companies Taken Private At? 7.7x ARR On Average Per SaaSomomics

SaaStr

ARR was the Median acquisition price in a “take private deal” Interestingly, it’s not all that different post-Boom and pre-Boom, as you can see above. Todd Gardner took a look at a series of public “take private” deals from 8/21 to 8/23, spanning the Boom and the Reset. What did he find? You might be worth less

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A Look Back at Q1 '24 Public Cloud Software Earnings

Clouded Judgement

It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up). Their ongoing revenue can “fund” new logo acquisition and allow the business to operate profitably at paybacks much larger than what private companies (with smaller ARR bases) can afford.

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The Relationship Between Margins and Acquisition Prices

Tom Tunguz

This is as true for their books business as their infrastructure business, AWS. Over sushi, a friend explained to me that this strategy might also extend to the way the company views acquisitions. Bezos has explicitly stated this strategy and it’s the one that has led to Amazon’s massive success in many different lines of business.

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The State of Subscription Apps with RevenueCat’s CEO Jacob Eiting and Growth Advocate David Barnard

SaaStr

Acquisition costs are dramatically lower for consumer and word-of-mouth distribution can go viral. In B2B, you also have fixed costs, but you can diversify monetization based on tokens or seats, or in the case of AWS, however you like. Because of that, you see a 5x increase in conversion from trial to paid on the app store.

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Picking Teams in AI

Tom Tunguz

It’s unclear how the Databricks acquisition might change that relationship. Five years ago, many startups defaulted to AWS for the generous credits, broad catalog, & rapid pace of innovation. Cloud infrastructure players are picking teams within the infrastructure layer.

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The Most Common SaaS Sales Potholes and How to Avoid Them with Mark Roberge (Podcast #498 and Video)

SaaStr

Pothole #5 – Prioritizing Revenue Acquisition Ahead of Customer Value Creation. It can be tough to know the answer to that question, but the indicators should be focused more on the retention side over the acquisition side. . Pothole #4 – Promoting Your Best Salesperson to Manager. When should you scale?

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The Week in Cloud: March 17, 2019

SaaStr

Acquisition multiples in SaaS/Cloud doubled last year. The Week in Cloud: A look at the stories in Cloud, SaaS, and business software that we found particularly useful and interesting. Big or small. __. Microsoft is doing a strong job of being the alternative for folks simply worried about Amazon. A huge donation, driven by the Cloud: [link].

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