Venture Capitalist at Theory

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2 minute read / Dec 6, 2023 /

In Like a Lamb, Out Like a Lion


Mongo announcing earnings yesterday concludes this quarter’s index of software buyers.

As the chart above shows, the software market is plateauing & some companies are rebounding.

Why is a flat growth rate something to cheer?

First, 30% growth is now top quartile.

Second, each of these businesses has scaled, doubling or more in the last three years. A 30% growth on twice as large a revenue base signifies many buyers are ready to spend.

Third, many of these businesses like Mongo & DataDog are raising guidance suggesting their teams’ confidence in the software market in 2024.

“We continue to see a healthy new business environment "

New customers fill the top of the funnel for the cloud offering.

“The growth in our total customer count is being driven primarily by Atlas which had over 44,900 customers at the end of the quarter compared to over 37,600 customers in the year ago period.”

Customers continue to grow accounts.

“We had another quarter with our net ARR expansion rate above 120%. "

Mongo is raising guidance by 3%-4%.

“We now expect revenue to be in the range of $1.654 billion to $1.658 billion non-GAAP income”

2023 started like a lamb & is going out like a lion. Expect 2024 to roar with growth for software companies.

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