Every week I’ll provide updates on the latest trends in SaaS valuations, earnings announcements, and highlight any noteworthy news. Follow along to stay up to date! Highlight of the Week - Earnings Season Begins! This week we saw a number of cloud businesses report their earnings for the quarter ending June 30th. So far every every company has beaten consensus estimates. While this may seem impressive, my takeaway is that estimates had been revised too low making these beats the expectation. That’s the only way Shopify could beat consensus estimates by 38%, and only watch their stock go up by ~7%. The street had clearly baked in a significant beat into their quarter expectations. Speaking of Shopify… Their run rate revenue is close to $3B, and in this last quarter they grew 97% YoY. That level of growth, at their revenue scale is staggering. They’re growing so fast they can’t even predict with a reasonable level of accuracy their targets for next quarter (they did not provide guidance). Below you can see a summary of earnings reports for the cloud businesses to report so far:
Clouded Judgement 7.31.20
Clouded Judgement 7.31.20
Clouded Judgement 7.31.20
Every week I’ll provide updates on the latest trends in SaaS valuations, earnings announcements, and highlight any noteworthy news. Follow along to stay up to date! Highlight of the Week - Earnings Season Begins! This week we saw a number of cloud businesses report their earnings for the quarter ending June 30th. So far every every company has beaten consensus estimates. While this may seem impressive, my takeaway is that estimates had been revised too low making these beats the expectation. That’s the only way Shopify could beat consensus estimates by 38%, and only watch their stock go up by ~7%. The street had clearly baked in a significant beat into their quarter expectations. Speaking of Shopify… Their run rate revenue is close to $3B, and in this last quarter they grew 97% YoY. That level of growth, at their revenue scale is staggering. They’re growing so fast they can’t even predict with a reasonable level of accuracy their targets for next quarter (they did not provide guidance). Below you can see a summary of earnings reports for the cloud businesses to report so far: