Jason ✨👾SaaStr.Ai✨ Lemkin Profile picture
Sep 13, 2020 7 tweets 2 min read Read on X
So "SaaStr Inc" revenue run rate fell to $0 in March+April with Covid ... and now is at a $3.2m run-rate, with a goal of $21m in 2021.

That's a big tilt, and a lot of change

The stakes weren't that high, but it was a second life learning on "tilting"

Here's what I learned:
1. Folks process change at different rates. Co-founders can process change the fastest. Some folks though need 10x-20x longer.

You need to >explain< rapid change many, many more times than you think.
2. Some good folks just won't go on that next journey with you. Some folks just won't want to go through the "tilt" and change. They didn't sign up for the new journey.
3. Give folks more time in a tilt. Related to point #1, but in a tilt, even some of the best folks may need 100 days to not just process change, but internalize brand new ways of doing things

But once they do, amazing things can happen

So give your top performers more time
4. Don't overload your top performers. This is tempting in normal times, but even more so during change. The top engineer, the top VP, the top leaders take even more on their shoulders.

As CEO/founder, you need to make sure they don't take on so much, they break.
5. The real leaders, post-tilt, come out better than ever. Promote them. Invest in them. Rebuild around them.

And watch who pokes their head up above the clouds.

The leaders you didn't know you had.
6. Finally, broken record here -- but go talk to your customers. They didn't know what they wanted in March and April (either). But they adjusted.

Your customers can't see the future very well.

But they sure can see the present. They can show you that. If you listen.

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More from @jasonlk

Jun 1
Mary Meeker and the Bond team have released their latest 300+ page annual report, this time all on AI

It's very good but long, so I've summarized the Top 10 Points for B2B and enterprise founders here: Image
1. AI User Adoption Is Literally Unprecedented

We know this, but still, the numbers do sort of blow your mind:

▶️ChatGPT: 0 to 800MM weekly users in 17 months (vs. Netflix’s 10+ years to 100MM)

▶️Time to 100MM users: ChatGPT (2 months), TikTok (9 months), Instagram (2.5 years)

▶️Global adoption: 90% of ChatGPT users are outside North America by Year 3 (vs. Internet’s 23 years to reach this level)

👉Why This Matters for B2B: Unlike previous tech waves that started in Silicon Valley and slowly diffused globally, AI hit the world simultaneously.

This means your global TAM expanded overnight, but so did your competition. Every B2B and SaaS company now competes in a global, AI-enabled market from Day 1.

The Kicker: ChatGPT’s daily usage increased 202% over 21 months, with users spending more time per session (47% longer) and having more sessions per day (106% more). This isn’t just adoption – it’s addiction-level engagement.Image
2. The Infrastructure Math Is Unprecedented

The Capital Intensity Is Off The Charts:

▶️Big Six tech CapEx: $212B annually (63% YoY growth)
▶️Microsoft AI business: $13B run-rate (175% YoY growth)
▶️NVIDIA data center revenue: $39B quarterly (78% YoY growth)
▶️Amazon AWS CapEx as % of revenue: 49% (vs. 4% during initial cloud buildout)

💡What’s Really Happening: This isn’t just “cloud 2.0” – it’s the biggest infrastructure buildout in tech history. Companies are spending more on AI infrastructure than entire countries’ GDP. xAI built a 200,000 GPU data center in 122 days (faster than building a single house).

👉For B2B and SaaS Leaders: The infrastructure layer is being rebuilt from scratch. If you’re not thinking about how to leverage this massive compute capacity, you’re missing the biggest infrastructure opportunity since the cloud transition. The companies building on this new stack will have 10x advantages over those still running traditional architectures.

🤷‍♀️The Scary Part: Energy consumption is exploding. Data centers now consume 1.5% of global electricity, growing 12% annually (4x faster than total electricity consumption). This infrastructure boom has real physical limits.Image
Read 13 tweets
Mar 2
Salesforce has crossed a stunning $40 Billion in ARR

It's passed SAP and now only MSFT + Oracle are bigger in the enterprise

And it's gone all-in on AI, with 5,000 AI AgentForce deals in just 1 quarter!

But ... AI hasn't led to more growth ... yet

5 Interesting Learnings:
#1. Only 21% of Salesforce’s Revenue Today is from … Sales

This has been true for many years, but it often comes as a surprise to those that don’t know the company as well as they know its CRM. Image
#2.  The Big Acquisitions Are Doing Well.  Mulesoft, Slack and Tableau Still Growing Faster Than The Average

Salesforce’s big ecomm and marketing bets on ExactTarget ($2.5B) and Demandware ($2.8B) may have seen growth slow to 9%, but its huge bet on Slack ($27B), seemingly crazy expensive bet on Tableau ($17B) and sizeable bet on Mulesoft ($6B) all seem to still be paying off.  Kudos!Image
Read 13 tweets
Feb 16
Holy cr*p Shopify.

At an $11.2 Billion run rate, it’s growing at a stunning 31%.  And it’s accelerating.

In fact, it’s growing the fastest it has in 3 years.

It’s just stunning to see this sort of growth at this scale. 

5 Interesting Learnings:
#1. Offline Revenue Up +33%, B2B Growth up 140%

While many think of Shopify as mainly an SMB online solution, its biggest growth now is in its largest customers (who run far more payments through Shopify), in its offline/ in-store business, and in B2B commerce.  Relatively speaking, SMB online is softer.Image
#2. Just 23% of Revenue From SaaS / Software, Down From 26%

This isn’t new, but always helpful to see this over time.  Shopify is effectively an ecommerce fintech that is powered by a SaaS solution. Image
Read 12 tweets
Feb 2
So there's one S-tier vertical SaaS leader almost everyone should know more about:

🏘️Procore

$1.2B ARR, SaaS for Construction Management
19% Growth
12% FCF

It almost died during GFC

But today dominates in U.S.

5 Interesting Learnings:
#1. All Growth Today in $100k+ Customers

Procore serves stakeholders of all sizes — but the net new revenue growth is in $100k+ customers. $100k+ customers are growing 18% overall. Image
#2.  84% of Revenue From U.S.

Going global can take longer and can be harder in vertical SaaS. It's a big push today, and a different motion. They are still a newer brand outside North America. Even 23+ years in! Image
Read 11 tweets
Oct 28, 2023
So Freshworks hasn't been immune to macro issues, but its bigger customers continue to grow and scale at an impressive rate

It's at ~$600,000,00 ARR today, growing 20%. But the bigger customers are growing much faster.

5 Interesting Learnings:
#1.  Bigger Customers Keep Growing, But SMBs Have Slowed

A common theme across tech today.  Freshworks has 51,700 customers at around $2k ARR, with a quick sales cycle of just 25 days.  But in contrast to their bigger customers, the macro environment — or perhaps market saturation — has led to slowing growth in their SMB segment in 2023.
Image
#2.  Leveling Up PLG to Accelerate SMB Customers, Including More Attention to Onboarding

It can seem hard to invest heavily in small customers, but if you don’t especially invest in their onboarding, that’s a big shame.  Because there are few things worse than closing a customer that never actually uses your product.  So much wasted energy getting them there.

Freshworks is doubling down here
Image
Read 11 tweets
Sep 24, 2023
Klaviyo and Instacart reopened the IPO markets, from a 20 year low

Two great leaders, worth almost $10B now and public, and both priced at high end

But they IPO’d without any “bounce”

A little easy money and greed does help restart markets

We didn’t see that Image
Klaviyo and Instacart in the end didn’t leave any money on the table

They maximized what they could raise, with the minimum dilution

But no bounce probably leaves the next wave of folks that are strong, but not as strong as Klaviyo or Instacart, in a slightly tougher position
IPO investors are a weird, thin niche of the market

After all, you can always just buy the next day, next week or next quarter if you want

We probably learned this week the demand is there in this niche market (buying at the IPO), but it’s not all that deep
Read 6 tweets

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