cloudedjudgement.substack.com · 2025-06-17 · 352d

Clouded Judgement: A Look Back at Q1 '25 Public Cloud Software Earnings

This article analyzes Q1 2025 earnings for 60 public cloud software companies, examining key SaaS metrics including net revenue retention, CAC payback, growth rates, and FCF margins. The author provides a framework for evaluating SaaS business health based on benchmarks developed through venture capital experience, highlighting that net new ARR additions declined 28% year-over-year while 92% of companies beat consensus revenue estimates.

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Metrics in this report

CAC Payback Period

12months

best-in-class

Private SaaS companies

CAC Payback Period

24months

minimum

Private SaaS companies (good threshold)

Guidance Raise

0.3percent

median

Q1 2025 public cloud software companies vs consensus

Net New ARR Growth

-28percent

year-over-year

60 public cloud software companies, Q1 2025 vs Q1 2024

Net Revenue Retention

130percent

best-in-class

B2B SaaS companies (general)

Net Revenue Retention

115percent

minimum

B2B SaaS companies (good threshold)

Net Revenue Retention

120percent

best-in-class

SMB-focused SaaS companies (e.g., Bill.com)

Revenue Consensus Beat

2.2percent

median

Q1 2025 public cloud software companies