🤖 The software recession is over — net new ARR re-accelerates

“Well, all the cloud service providers are doing extremely well. I mean, cloud is still the future of software, and the cloud service providers are still growing really strongly.”

“And I'm seeing that a bunch of SaaS companies are kind of hurting today now in the wake of this. They're down like 5%, not 20, but so I wonder if what the market is wondering is whether there's a more general slowdown that we're on the precipice of.”

“So I think what the market is voting with their dollars is that these large lumpy monolithic software companies that need big 50, 100 million dollar customers, they're not gonna find them soon”

“But I don't think that the adoption of software is going to slow down. It certainly seems to be reaccelerating.”

“With the market ripping, and you now got a really efficient company, you're like, hey, can we spend a little bit on SaaS to make the remaining employees even more productive? OK, maybe that's a reasonable discussion. And then people are playing ball in terms of negotiating prices.”

“But now we're seeing quarter over quarter growth. So growth is re-accelerating. Growth is higher than it was. So is it going to get to where it was? That probably will take some time, but it feels like the problems in the ecosystem work themselves out, and now we're back to growth again.”

“Is that we've re-baselined these businesses. So now what would have looked like just a massive miss over the last two years now looks like a beat because we've just completely reset expectations. Is it that or is it that the economy is actually expanding and we can count on some reasonable growth rates?”

“I do think that the whole B2B software industry definitely went through a recession. But fortunately, I think we bottomed out and are starting to see green shoots now. So things are returning to normal.”

“I think software revenues are going to rebound.”

“I think again, the software recession, I'm calling an end to the software recession.”