The “SaaSpocalypse” does not appear to be reflected in the figures from the SaaS companies that were supposed to fall victim to it. Nevertheless, investors are reacting very differently to the results of Snowflake, Salesforce, Zscaler, Nutanix, and others.
On April 9, Snowflake had to swallow a 9 percent drop in market value, a further blow in a year in which nearly 32 percent had already been lost. On May 28, things looked much brighter for Snowflake following the presentation of its most recent quarterly results. A 34 percent increase in revenue (to $1.39 billion) and an expected 31 percent growth for the coming year led to an almost equally significant 30 percent rise in the company’s market value. CNBC reported a peak of 36 percent(!).
Other Snowflake news likely contributed as well. The partnership with AWS has expanded, with a $6 billion commitment to boost enterprise adoption of AI agents. At the same time, Snowflake announced that it has surpassed $7 billion in AWS Marketplace sales.
Salesforce continues to grow, market reacts moderately
Although Salesforce also saw significant growth in annual revenue (up 13 percent to $11.13 billion), the stock failed to follow a similar upward trajectory. Compared to a year ago, the company’s market value has dropped by 30 percent. This comes despite the fact that revenue from Agentforce, the agent-based platform for the CRM solution, has surpassed $1 billion in annual recurring revenue. Salesforce isn’t giving up and is buying back $25 billion in shares, in addition to raising its revenue forecast for the full fiscal year to $45.9 to $46.2 billion.
Zscaler takes a big hit, Nutanix a slight one
A 17.3 percent stock drop followed Zscaler’s failure to meet its revenue target of $860.4 million. Instead, it brought in $850.5 million. However, the security company did beat the expected $1.04 revenue per share with $1.08.
Nutanix, which also reported its figures, actually exceeded its revenue target of $686.3 million with a result of $703.1 million. Annual recurring revenue grew to $2.43 billion, a 15 percent increase year-over-year. For the full year, Nutanix expects to generate $2.83 billion in revenue. The market reaction was muted: a 2.1 percent decline, essentially little more than a typical down day in the middle of a quarter.
Read also: The SaaSpocalypse is a myth, and Salesforce proves it