      cloudedjudgement.substack.com · 2024-05-03
      · 762d
    

Clouded Judgement: Hyperscaler Rebound vs. Software Guidance Misses in Q1 2024

Q1 2024 marked a notable rebound for hyperscalers (AWS, Azure, GCP) with accelerating growth rates, but the broader software universe showed weakness with 66% of companies guiding below consensus and limited full-year guidance raises. The article provides detailed SaaS valuation multiples, operating metrics benchmarks, and Rule of 40 analysis to assess relative valuations against growth expectations.

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Metrics in this report

AWS Revenue Growth Rate

17percent

Q1 2024 YoY

AWS cloud infrastructure

Azure Revenue Growth Rate

31percent

Q1 2024 YoY

Azure cloud infrastructure

CAC Payback Period

39months

median

Public SaaS companies

Free Cash Flow Margin

11percent

median

Public SaaS companies with positive FCF

G&A Spending

16percent

median

Percent of SaaS company revenue

Google Cloud Revenue Growth Rate

28percent

Q1 2024 YoY

Google Cloud infrastructure

Gross Margin

75percent

median

Public SaaS companies

LTM Growth Rate

17percent

median

Public SaaS companies last twelve months

NTM Growth Rate

13percent

median

Public SaaS companies forward guidance

Net Revenue Retention

110percent

median

Public SaaS companies

Operating Margin

-11percent

median

Public SaaS companies

R&D Spending