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5 Interesting Learnings from Salesforce at $40 Billion in ARR

SaaStr

Nvidia, Google Cloud, Azure, etc. The Big Acquisitions Are Doing Well. But how about 2026+? We’ll see. Salesforce Growth: FY26 $40.9B (guidance) FY25 $37.9B Salesforce Operating Cash Flow: FY26 $14.5B (guidance) FY25 $13.1B Salesforce Margin: FY26 34% (guidance) FY25 33% FY24 30.5%

Scale 202
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Seven Strategic Rationales for the Microsoft/Github Acquisition

Tom Tunguz

It’s a massive acquisition at a massive price relative to other software acquisitions. The Skype acquisition was also about identity, consumer identity. Microsoft has published Linux and FreeBSD for Azure. This acquisition capstones the commitment. Why is Microsoft willing to pay so much? Developer identity.

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AI Reaccelerating Cloud Growth

Tom Tunguz

“Because of our overall differentiation, more than 18,000 organizations now use Azure OpenAI service, including new-to-Azure customers.” ” “Higher-than-expected AI consumption contributed to revenue growth in Azure.” ” Microsoft’s presence in the developer ecosystem continues to astound.

AI Search 304
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Why Would Microsoft Buy Wunderlist and Later Just Shut it Down?

SaaStr

For a Really Big Tech Company, any acquisition of less than about $1b is somewhere between an experiment and a bet. Once Office 365, Azure, etc. And maybe even almost an experiment. Buying Wunderlist for $150m sure sounds like a lot to me and you. But the reality is, it’s 0.1% of Microsoft’s market cap. But an experiment.

Azure 318
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How Your Sales Team Can Use PLG to Acquire and Expand New Customers Faster with Uday Chakravarth, Former Head of PLG at Atlassian 

SaaStr

With a PLG-heavy background, first working at Microsoft Azure and again with Atlassian, the PLG pioneers, he gives insights into leveraging PLG for the growth of your organization. It’s an end-user-focused growth model where your product drives acquisition, activation, expansion, and retention. That’s PLG. Why is it end user-focused?

Scale 299
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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). It’s worth pointing out that Azure is a bit above the long term trendline, while AWS is still below (but accelerating up).

Cloud 318
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SaaS Rule of 40 Drivers Using KeyBanc’s 2021 SaaS Survey

SaaStr

2 drivers stood out as notable: Customer Acquisition Cost (CAC) and Churn. In terms of Customer Acquisition Costs, “Rule of 40” Qualifiers spent 31% less to acquire a new customer. As context, the KBCM 2021 survey data showed customer acquisition cost (CAC) payback periods of 18 to 26 months on a gross margin basis.

SaaS 317