In May 2024, a company reported $505k in monthly recurring revenue (MRR) with a 9.2% increase, reaching a total revenue of $612k, a 12% rise. Total costs decreased by 4.1% to $312k. Active subscriptions grew by 10.3% to 35.1k, while signups declined by 9.7% to 272k. The CEO attributed the slower growth to seasonality and bugs but anticipates stronger growth in June. Another company, $S, saw a 13.34% drop in stock price after releasing Q1 earnings, with total revenues up 40% year-over-year to $186.4M. Gross margin stood at 73%, and customers with $100K+ annual recurring revenue increased by 30% to 1,193. Q2 revenue is expected to be at least $197M, a 32% year-over-year increase. The revenue growth rate remains stable at around 40% year-over-year. Additionally, the software industry is experiencing low valuations despite businesses growing at 25-30% CAGR, with shareholders expected to benefit from the growth in the coming years. The hypergrowth and high-growth enterprise software sector has seen a significant decline, with fewer companies projected to achieve high growth rates. Public software markets faced notable declines last week, with companies like MongoDB, UIPath, Salesforce, and Workday experiencing significant drops. Weaker revenue projections have led to sell-offs, although such market corrections are not unprecedented.
Last week, public software markets suffered significant compression. MongoDB fell 24%; UIPath fell 36% ; Salesforce fell 15% ; Workday was down 11%. Weaker revenue projections tend to cause sell-offs. These large drops aren’t unprecedented. In 2016, valuations fell 57%. Is it… https://t.co/5mpAG26hYE
Death of hypergrowth + high growth enterprise software cos from Rob Bartlett @GuggenheimPtnrs in 2021 there were 17 "hypergrowth" publicly traded enterprise software cos projected to grow >40% End of 2023, there were zero hyper + only 2 "high growth" projected to grow >30% 5… https://t.co/1ULBdj6uqS
Software multiples (10-year lows)! Valuations are now compressed and the underlying businesses are still growing at 25-30%CAGR. Shareholders likely to capture most of the business growth over the next few years. The high quality software businesses likely to generate high IRR. https://t.co/Xu11E9M73T
$S closed down 13.34% on Fri. after reported its Q1 earnings results: Total revs up 40% y/y to $186.4M, +2 pps q/q Gross margin was 73% Customers w/ $100K+ ARR up 30% to 1,193 Expect Q2 revs to be min $197M, up ~32% y/y Revs growth remains stable at ~40% y/y, even though… https://t.co/iTRpPnijd3 https://t.co/oidsXXaVdT
May 2024: 💸 $505k MRR (+9.2%) 💰 $612k total revenue (+12%) 💳 $312k total costs (-4.1%) 👨🎓 35.1k active subs (+10.3%) 👋 272k signups (-9.7%) Seasonality + bugs held us back a bit in May, I expect stronger growth in June 🤠 https://t.co/2FNMULRAPp