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- Breaking! 🗞 Stripe and Chargebee employee cuts and SaaS Q3 earnings
Breaking! 🗞 Stripe and Chargebee employee cuts and SaaS Q3 earnings
Workiva: HubSpot, AvidXchange, Procore, Qualys, Confluent, Datadog, Fastly, AnalyticsQ3, Jfrog, Amplitude, Clearwater
This is the Cloudly Update. Helping you stay above the Clouds.
Today we bring you:
Stripe lays off 14% of its employees in a bid to cut down operating expenses (3 minutes read)
HubSpot records double digit customer growth in Q3 2022
SaaS unicorn Chargebee lays off 10% employees
AvidXchange Q3 Snapshot
Qualys recorded 20% revenue increase in Q3 2022
Procore Q3 2022
Confluent Cloud revenue up by 112% in Q3 2022
Datadog Q3 earnings beats market expectations
Fastly reports Q3 loss but revenue beats estimate
Workiva Q3 2022
JFrog beats Q3 EPS estimates by 2 cents
Amplitude Q3 results beat estimates
Clearwater Analytics Q3 earnings
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Stripe announced laying off 14% of its employees to reduce costs and brace itself for the impact of inflation, higher interest rates, reduced investment budgets, and sparser startup funding.
Stripe founders posted they had been too optimistic about the internet economy's near-term growth in 2022 and 2023 and had grown operating costs too quickly. The decisions were taken to make amends.
In their forward-looking statements, they were optimistic about the increase in sales. The company has acquired 75% more new customers in Q3 2022 than in Q3 2021, as per their financial guidance.
HubSpot, the CRM platform for scaling companies, recorded 31.0% year-on-year growth in Q3 revenue to $444 million vs. the $426.04 million S&P Capital IQ Consensus. EPS was $0.73, $0.22 better than the S&P Capital IQ Consensus of $0.51.
GAAP operating margin was (7.3%), compared to (4.4%) in Q3'21 and non-GAAP operating margin was 9.2%, compared to 9.7% in Q3'21.
GAAP operating loss was ($32.2) million, compared to ($14.9) million in Q3'21. Non-GAAP operating income was $40.7 million, compared to $32.9 million in Q3'21.
24% year-over-year customer growth was recorded and was 158,905 at September 30, 2022. Average subscription revenue per customer was $11,233 up 7% compared to Q3 2021.
Company issues mixed guidance for Q4, sees non-GAAP EPS of $0.82-$0.84 vs. $0.79 S&P Capital IQ Consensus & sees Q4 revenue of $444-$446 million vs. $449.63 million S&P Capital IQ Consensus.
The company issues guidance for the full year 2022 and expects total revenue in the range of $1.705 billion to $1.707 billion & non-GAAP EPS of $2.48 to $2.50.
Chargebee has laid off 10% of its staff to cut down its operational cost.
At the start of Q2, macroeconomic factors began impacting public companies and the financing environment. And the start-up changed its hiring plans and started implementing a stricter fiscal discipline to reorient the company towards long-term sustainability.
Chargebee raised $250 million in its latest round, led by Tiger Global and Sequoia Capital, at a valuation of $3.5 billion.
AvidXchange, a leading accounts payable (AP) automation software provider, declared Q3 2022. They recorded 26.4% year-over-year growth in revenue of $82.4 million and surpassed the S&P Capital IQ Consensus of $78.63 million.
GAAP net loss was $(25.4) million vs $(35.5) million and non-GAAP net loss was $(11.6) million vs $(15.3) million in Q3 2021. AvidXchange reported a loss of $0.13 per share and may not be comparable to the S&P Capital IQ Consensus of ($0.11).
Adjusted EBITDA was $(3.7) million compared with $(6.0) million in Q3 of 2021.
Total transactions processed increased by 11.9% and were 18.0 million vs 16.1 million Y-o-Y. Transaction yield recorded at $4.57, an increase of 12.8% Y-o-Y.
Michael Praeger, CEO & Co-Founder of AvidXchange said “With the macroeconomic backdrop still volatile, we remain cautiously optimistic as we look to close the year on a strong note”. They issued upside guidance for FY22 and see revenues of $314-315 million vs S&P Capital IQ Consensus of $309.86 million and their prior guidance of $308-310 million.
Qualys recorded Q3 revenues at $125.6 million, better than S&P Capital IQ Consensus of $124.56. EPS was $0.94 and were $0.09 better than the S&P Capital IQ Consensus of $0.85.
GAAP gross profit increased by 21% to $99.6 million vs $82.5 million Y-o-Y with gross margin of 79%. Non-GAAP gross profit increased by 20% to $102.2 million vs $85.1 million Y-o-Y. Non-GAAP gross margin was 81%.
GAAP operating income was 27% of revenue, recorded at $33.3 million compared to $32.0 million in Q3 2021. Non-GAAP operating income increased by 11% to $48.0 million compared to $43.1 million Y-o-Y.
Adjusted EBITDA increased by 9% to $54.9 million compared to $50.3 million Y-o-Y.
Qualys issues guidance for Q4, and sees EPS of $0.89-0.91 vs. $0.87 S&P Capital IQ Consensus. They see Q4 revenues of $129.7-130.7 million vs. $130.59 million S&P Capital IQ Consensus.
Qualys raises 2022 guidance and expects revenues from $488.6 million to $489.6 million. And sees GAAP EPS between $2.52-$2.54 and non-GAAP EPS around $3.60.
Procore, a construction management software provider, in its Q3 posted a 41% year-over-year increase in revenue. The revenue landed at $186 million (this includes an $8.5 million contribution from Levelset) against market expectations of $175.97 million.
GAAP operating and non-GAAP operating margins were 39% and 7%, but there was a GAAP loss of $0.52 per share, which is $0.35 more than market expectations.
In their forward-looking statements, their Q4 revenue will land at $189-191 million, representing year-over-year growth of 29-31%, while the market predicts a figure of $185.87 million for their total sales.
Confluent, the data streaming pioneer, announced financial results for its third quarter of 2022.
Total revenue was $152 million, up by 48% year over year, and was much better than the S&P Capital IQ Consensus of $144.83 million. The company reported a loss of $(0.13) per share, which is $0.04 better than the S&P Capital IQ Consensus of ($0.17). Confluent recorded 14-point GAAP and non-GAAP operating margin improvements year-over-year.
Jay Kreps, co-founder, and CEO of, Confluent, said, "39% year-over-year growth in customers with $100k+ ARR (Annual Recurring Revenue), while the 112% year-over-year growth in Confluent Cloud revenue underscores the strong differentiation and TCO advantage of our cloud-native platform.” The company recorded 72% year-over-year growth in RPO (Remaining Performance Obligations).
Company issues upside guidance for Q4, and sees EPS of $(0.16) -(0.14), excluding non-recurring items, vs. ($0.18) S&P Capital IQ Consensus. They see Q4 revenues in the range of $161-163 million vs. $160.25 million S&P Capital IQ Consensus.
Confluent gave an outlook for FY 2022 and sees non-GAAP EPS of $(0.65)- $(0.63) & total revenue between $578-$580 million.
Datadog reported 61.4% year-over-year growth in Q3 revenue to $436.5 million vs. $414.32 million S&P Capital IQ Consensus. Non-GAAP EPS is recorded at $0.23, $0.07 better than the S&P Capital IQ Consensus of $0.16.
GAAP operating loss was $(31.3) million and operating margin was (7)%. Non-GAAP operating income was $74.8 million and operating margin was 17%.
Datadog has about 2,600 customers with ARR of $100,000, an increase of 44% from about 1,800 as of September 30, 2021.
The company announced 18 new products for a variety of observability, security, and developer experience use cases.
Company issues guidance for Q4, sees EPS of $0.18-0.20, excluding non-recurring items, vs. $0.13 S&P Capital IQ Consensus. Datadog sees Q4 revenue of $445-449 million vs. $447.86 million S&P Capital IQ Consensus.
Datadog issues upside guidance for FY22 and sees EPS of $0.90-0.92, excluding non-recurring items, vs. $0.79 S&P Capital IQ Consensus. The company sees revenues from $1.650-1.654 billion vs. $1.63 billion S&P Capital IQ Consensus.
Datadog, a monitoring and security platform, announces they have acquired Cloudcraft, a platform that creates real-time diagrams of cloud infrastructures. In their press release, Datadog stated they would continue to offer Cloudcraft to existing and new customers. They would enhance Cloudcraft capabilities by integrating it with the Datadog platform.
Fastly Q3 revenue grew 25.1% year-over-year to $108.5 million vs. $103.66 million S&P Capital IQ Consensus. The reported loss of $0.14 per share, excluding non-recurring items, is $0.03 better than the S&P Capital IQ Consensus of ($0.17).
GAAP net loss was $63.4 million, compared to $56.2 million in Q3 2021. Non-GAAP net loss was $16.8 million, compared to $13.2 million in Q3 2021.
The trailing 12-month net retention rate (NRR LTM) increased to 118% in the third quarter from 117% in the second quarter of 2022.
Dollar-Based Net Expansion Rate (DBNER)2 increased to 122% in the third quarter from 120% in the second quarter of 2022.
Total customer count was 2,925, of which 482 were enterprise3 customers. Average enterprise customer spend of $759K in the third quarter, up 4% quarter-over-quarter.
Company issues guidance for Q4 sees EPS of ($0.15) - ($0.11) vs. ($0.10) S&P Capital IQ Consensus. Fastly sees Q4 revenue of $112-116 million vs. $112.12 million S&P Capital IQ Consensus.
Workiva in its Q3 reported that revenue increased by 17.9% Y-o-Y which landed at $(132.8) million, better than market expectations of $(132.52).
There were losses, however.
GAAP net loss per basic and diluted share was $(0.56). It was $0.13 in Q3 2021.
Non-GAAP net loss per basic share was $(0.15), better than the market estimated $(0.26) figure.
For Q4, they expect their revenues to be in the range of $(138.9) million to $(139.9) million against the market figure of $(141.27) million. Meanwhile, EPS will range between $(0.10) to $(0.08), excluding non-recurring items, against market expectations of $(0.09).
JFrog, the Liquid Software company, recorded Q3 results. Their revenue rose 34.1% year-over-year to $72 million vs. $70.66 million S&P Capital IQ Consensus. Non-GAAP EPS was $0.02 per share, $0.02 better than the S&P Capital IQ Consensus of ($0.00).
Their cloud revenue equaled $21.0 million, an increase of 60% over the year. And represents 29% of total revenue, compared to 24% in 2021.
JFrog’s $100K ARR customers increased 49% year-over-year to 696, compared with 466 in the year-ago period. And $1 million ARR customers increased 29% year-over-year to 18 customers, up from 14 customers as of September 30, 2021.
Company issues in-line guidance for Q4, sees EPS of $0.01-0.02, excluding non-recurring items, vs. $0.02 S&P Capital IQ Consensus. And sees Q4 revenue in the range of $76.5-77.5 million vs. $76.55 million S&P Capital IQ Consensus.
JFrog revised fiscal year 2022 outlook and sees revenue between $280.0 million to $281.0 million & non-GAAP net income per diluted share between $0.01 and $0.02.
Amplitude, a leading digital analytics platform, recorded a 35.5% year-over-year increase in Q3 revenue to $61.61 million vs. $60.19 million S&P Capital IQ Consensus. Reports loss of $(0.03) per share, excluding non-recurring items, $0.05 better than the S&P Capital IQ Consensus of $(0.08).
GAAP loss from operations was $(24.2) million vs $(36.8) million year-over-year. Non-GAAP loss from operations was $(4.9) million vs. $(2.3) million.
Net cash used in operating activities was $(3.1) million vs. $(15.1) million year-over-year. Free cash flow was $(3.9) million vs $(15.8) million year-over-year.
Number of paying customers grew 35% year-over-year to 1,913.
Their Current Remaining Performance Obligations were $183.9 million, up 46% year-over-year.
Company issues guidance for Q4, sees EPS of $(0.04)-$(0.03), excluding non-recurring items, vs. ($0.10) S&P Capital IQ Consensus and sees Q4 revenue of $62.5-64.5 million vs. $63.39 million S&P Capital IQ Consensus.
The company gave guidance for FY 2022 and sees revenue of $235 - $237 million & non-GAAP net loss per share of $(0.21) - $(0.22).
Clearwater Analytics, a leading SaaS investment accounting solution, delivered a solid Q3 2022. Revenue increased 18.1% year-on-year to $76.5 million, and EPS was $0.07 per share, excluding non-recurring items.
Gross profit was $53.8 million, vs. $46.7 million in Q3 2021. Non-GAAP gross profit was $57.3 million, which equates to a 74.8% non-GAAP gross margin.
Adjusted EBITDA was $18.8 million, vs. $17.1 million in the third quarter of 2021. And Adjusted EBITDA margin was 24.6%.
ARR reached $303.6 million, an increase of 18.1% from $257.0 million as of September 30, 2021.
The Company has reported a gross revenue retention rate of 98% and maintained it for the last fifteen consecutive quarters.
Company issues in-line guidance for Q4 and sees Q4 revenue of $79.3-81.3 million vs. $79.66 million S&P Capital IQ Consensus. And adjusted EBITDA of $22.2 million to $23.2 million.
Company issues upside guidance for FY22, see revenue of $300-302 million vs. $298.67 million S&P Capital IQ Consensus. And adjusted EBITDA of $79 million to $80 million.
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