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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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5 Interesting Learnings from Digital Ocean at $700,000,000 in ARR

SaaStr

Many have used Digital Ocean at the cheaper, simpler version of AWS-Azure-Digital Ocean to get going fast and quickly. Digital Ocean is only growing 16% now at $700m ARR, and churn is up and NRR down. Churn Stable. Churn did grow from 12% to 15%, but NRR fell far faster, from 118% to 96% in just one year.

Scale 288
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Thanks to ChartMogul, ChurnZero, Cledara, Secureframe, and Verdane for Sponsoring SaaStr Europa 2023!

SaaStr

You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. You need an efficient way to keep your customers successful, reduce churn, drive adoption, and increase net revenue retention.

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Thanks to Bee, ChartMogul, Maast, SecureFrame, and StratusGreen for Sponsoring SaaStr Annual 2023!

SaaStr

You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure.

Payments 260
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A Look Back at Q4 '23 Public Cloud Software Earnings

Clouded Judgement

The first few months of this year felt like a lot of churning in the market. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. net retention and CAC payback). Is Software Rebounding? Who are the real AI winners.

Cloud 184
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

At contract expiration these customers either renew (sign another contract with same annual value), expand (sign another contract with higher annual value), contract (sign another contract with lower annual value), or churn (stop being a customer and spend goes to zero). It’s probably better described as re-occurring vs recurring.

AI 190
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Clouded Judgement 8.11.23 - Datadog Consumption Trends

Clouded Judgement

The good news is gross retention (ie churn) stayed constant. If next quarter we get similar commentary that Azure gave us this quarter (“still a couple quarters away” without any specific guidance), then we may see market loose a little patience. The weakness they called out was from larger cloud-native businesses.

Cloud 130