We all know times are good in SaaS and Cloud — but just how good? Is it all the big public cloud vendors and a handful of outliers?
Really impressive, accelerating, Datadog quarter 📈
– $234M rev (+67% YoY) vs $212M consensus (10% beat)
– $247M next Q guidance vs $225M consensus (10% raise)
– Last Q YoY growth was 51%
– >130% net retention
– 7 months GM adj. CAC payback
– 76% GM
– 18% FCF Margin$DDOG
— Jamin Ball (@jaminball) August 5, 2021
No. It really is almost everyone at SaaS that is at scale and has a winning brand. Let’s take a look at a few:
- Datadog accelerated to 67% YoY growth, up from 51% last quarter.
- HubSpot accelerated to 53% YoY growth, up from 44% a year ago
- Zendesk accelerated to 29% YoY growth, up from 26% last quarter
- AWS accelerated to 37% YoY growth, up from 32% last quarter
- Atlassian accelerated to 38% YoY growth, up from 23% just the prior quarter
- Avalara (tax software) accelerated to 45% YoY growth, up from 38% the prior quarter
- Twilio isn’t accelerating per se, but has maintained a torrid 62% YoY growth
It’s not quite everyone. Some public SaaS companies that are less competitive than they used to be (e.g., New Relic), or had a stumble (e.g., Fastly), aren’t growing even faster.
But the majority are. Most of whom didn’t get a magic boost from Covid like Zoom. Many of whom really are more proxies for the web overall (Zendesk, everyone needs support) and SMBs using the web to run and scale their businesses (HubSpot).
Now is your time, folks. It’s not just the Best of Times in SaaS. It’s even better than it was just a quarter ago, let alone a year ago.
Make it so.
A related post here: