Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Highlight of the Week - Cloud Earnings! What if I told you best in breed cloud businesses could asymptote at 40% annual growth? How would that change outer year valuations for companies today? Most analysts project linearly decelerating revenue for almost all businesses, getting to something like 10% in outer years. For so many cloud businesses we’ve seen durability of growth that is truly remarkable. Look no further than the 3 cloud giants who reported earnings over the last 2 week. AWS within Amazon, Azure within Microsoft, and GCP within Google. All are great proxy’s for the overall cloud software market, and all had monster quarters. None more impressive than AWS - they’re at a $71B run rate growing 40% YoY! Think about that scale and that growth rate. It’s truly remarkable, and a testament to how durable growth can be in best of breed software companies. I can very confidently say there are a number of cloud software companies who have impressive growth today, where just about everyone is underestimating what revenue they will do in 2025 and beyond
Does your Payback calculation include existing customer Expansion ARR? Why wouldn't you look at only new Customer ARR?