Q2 earnings season for cloud businesses is now behind us. The 69 companies that I’ll discuss here (which is not an exhaustive list, but is still comprehensive) all reported quarterly earnings sometime between July 20th – September 12th. In this post, I’ll take a data-driven approach in evaluating the overall group’s performance, and highlight individual standouts along the way. As a venture capitalist, I naturally cater my analysis through the lens of a private investor. Over my 6+ years as a VC, I’ve had the opportunity to meet with hundreds of entrepreneurs who are all building special companies. Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., net retention and CAC payback). Let’s dive in.
In your analyses how do you take into account when the revenue growth comes from acquisitions? For example BILL.COM has 156% YoY growth, but from it $80M came from recently acquired Divvy and Invoice2go.
Invoice2go doesn’t contribute much. Divvy is the big piece. But I’d say even considering only organic, their monetization on TPV still healthy and penetration is ramping for org products like xborder and VCC
I joined my current team as an analyst covering software after graduation last year. It has always been a pleasure following ur blog and reading them def helped accelerate ramping my knowledge base on SaaS. Thank you Jamin!
In your analyses how do you take into account when the revenue growth comes from acquisitions? For example BILL.COM has 156% YoY growth, but from it $80M came from recently acquired Divvy and Invoice2go.
Invoice2go doesn’t contribute much. Divvy is the big piece. But I’d say even considering only organic, their monetization on TPV still healthy and penetration is ramping for org products like xborder and VCC
I joined my current team as an analyst covering software after graduation last year. It has always been a pleasure following ur blog and reading them def helped accelerate ramping my knowledge base on SaaS. Thank you Jamin!
Another fabulously informative quarterly report. Thanks Jamin!