
The Official SaaStr Podcast: SaaS | Founders | Investors
SaaStr 688: The State of the Cloud 2023 with Bessemer Venture Partners
Episode guests
Podcast summary created with Snipd AI
Quick takeaways
- Cloud companies are focusing on efficiency and profitability by optimizing costs and scrutinizing expenditures.
- Cloud companies are incorporating AI and ML technologies to enhance product offerings and optimize R&D efficiency.
Deep dives
The Turbulent Year for Cloud Companies in 2022 and the Outlook for 2023
In 2022, cloud stocks faced a significant market pullback event, impacting valuation multiples and business fundamentals. The external shock of interest rate hikes and macro uncertainty contributed to this decline. However, in 2023, there are signs of stabilization and recovery. Valuation multiples are closer to pre-pandemic averages, and the IPO window is showing more signs of life. Cloud companies are focusing on efficiency and profitability, as seen by the shift towards driving profitability and improved cash flow margins. The private cloud market has also been impacted, with a decrease in aggregate value. Cloud founders are adopting tactics such as optimizing costs, streamlining sales and marketing channels, and scrutinizing software expenditures to drive efficiency and profitability.