The Official SaaStr Podcast: SaaS | Founders | Investors cover image

The Official SaaStr Podcast: SaaS | Founders | Investors

SaaStr 688: The State of the Cloud 2023 with Bessemer Venture Partners

Sep 25, 2023
Bessemer Venture Partners discusses the state of the cloud economy, with topics including recent developments in SaaS IPOs and M&A, the importance of efficiency and profitability, strategies for growth and efficiency in the cloud industry, and leveraging AI for product innovation and efficient growth tactics.
26:57

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.

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