So is it a downturn in SaaS or Cloud — or not?
There are so many mixed signals:
- Unicorn product is up 2x over last year, but layoffs continue
- AI spend is fast and furious, with Google Cloud, Microsoft Azure, etc. seeing record acceleration in growth.
- The U.S. economy overall still has record-low unemployment and strong growth
- Gartner is seeing overall Cloud spend up 20% this year
But:
- Overall, SaaS leaders are seeing their lowest growth ever. Salesforce has now slid to < 10% growth
- NRR is down at many SaaS leaders
- ARR multiples at public SaaS companies remain stuck at some of the lowest multiples in a decade
So it’s … mixed. Overall, SaaS leaders tied to non-tech buyers or tied to AI are still growing at epic rates. The rest in many cases are struggling.
With that, let’s take a look at some of the latest numbers:
The Thriving — this week and last:
- Monday.com crossed $1 Billion in ARR, growing a stunning 34% (!). Wow. 70% of Monday’s SMB customers are outside of tech.
- CrowdStrike, despite a brand-threatening outage this quarter, also grew 34% at $3.8 Billion in ARR. Although it did warn of slowing growth.
- Toast announced 29% growth at $1.5 Billion in ARR, and predicted continued growth at that level.
- Snowflake is still growing 30% at $3.5 Billion in ARR, although it too was concerned about future growth.
- Shopify is accelerating again at $8 Billion in ARR. growing 21% and predicting even better growth ahead.
The Tougher News of the week:
- Elastic saw growth slow to 18% on $1.4 Billion in ARR
- Mongo saw growth drop to just 13% at $1.9 Billion in ARR
- Okta saw growth slow to 16% at $2.6 Billion in ARR
Net net, it’s for sure harder out there than it used to be. But it’s not that simple.
It’s a mixed bag.
