So the news is mixed out there in SaaS and Cloud land:

On the positive side:

But that doesn’t mean it’s actually any easier for them, or for most of us.  And for many, their growth rates are still materially lower than in 18-24 months ago.

The underlying trends aren’t necessarily rosy per se.  Few if any SaaS leaders are saying things are harder than 6 months ago. Almost everyone agrees that things have at least bottomed out.

And some are seeing a rebound for sure.  Datadog noted it saw better usage growth in Q3 from existing customers than it did in Q2, and that the start to Q4 was the healthiest it had seen in some time.

Two top SaaS leaders were clear that things aren’t worse but they also aren’t any better than they were 6-9 months ago:  HubSpot and ZoomInfo.

HubSpot had a great quarter, growing a stunning 24% at $2.2 Billion in ARR!  Still, CEO Yamini Rangan noted things have not gotten any easier:

“What we are seeing in second half as customer trends is very similar to what we saw in the first half of 2023. It’s not gotten better and it’s not gotten worse.”

ZoomInfo was similarly direct.  They’ve had a more challenging run, with growth materially slowing at $1.3 Billion in ARR.  Founder CEO Henry Schuck was very direct on the macro impacts, that they haven’t seen any macro improvement at all yet:

“October looks a lot like September and Q3 looked.  So, we haven’t seen any improvements in the environment.”

Few SaaS and Cloud leaders are saying things are getting harder.  Some have bounced off lows and are reaccelerating.

But the CEOs of both HubSpot and ZoomInfo were very clear: it hasn’t gotten any easier out there.  Not yet.

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