eCommerce is ⬆️ and Cloud is 🔻

This is the Cloudly Update. Helping you stay above the Clouds.

Today we bring you:

Shopify Says eCommerce is Back. But AWS Says Cloud Under More Scrutiny

Forrester see AWS under pressure

UserTesting to be acquired for $1.3 billion

AppFolio Q3 Snapshot

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Shopify Says eCommerce is Back. But AWS Says Cloud Under More Scrutiny (2 minutes read)

Shopify reported strong 22% growth in revenue at $1.4 billion, and one can say that e-commerce is back on track.

The Cloud infra side grew nicely, but growth rate was slow.

AWS revenue growth was on the lower side at 27% this quarter compared to Q2 and Q1, 33% and 37%, respectively.

AWS and Microsoft Azure reported more customers scrutinizing spending and working to manage their bills more carefully. Google Cloud accelerated growth at a $27B run rate. But with more Scrutiny does seem like the theme of the day in SaaS and Cloud.

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Forrester see AWS under pressure (2 minutes read)

Forrester predicts AWS will be under pressure in 2023 to match the security provisions of its main competitors in the cloud market - Google and Microsoft. This is predicated on the fact that Google recently beefed up its security portfolio by acquiring Mandiant, while Microsoft built its defender offerings, including a managed detection and response service.

AWS may complement its silicon-focused security approach by acquiring an MDR vendor, but any such move would not go unnoticed.

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UserTesting $1.3 billion acquisition by Thoma Bravo and Sunstone Partners (2 minutes read)

UserTesting will be acquired by private equity firms Thoma Bravo and Sunstone Partners for approximately $1.3 billion. It values the company at $7.5 per share, a 94% premium to the Wednesday closing price of its stock.

The acquisition will be completed in the first half of 2023. Afterward, Thoma Bravo and Sunstone Partners plan to merge UserTesting with UserZoom.

UserTesting reported a 28% increase in revenue at $49.4 million in Q3.

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AppFolio Q3 Snapshot (4 minutes read)

AppFolio recorded a 31% increase in revenue of $125.1 million, slightly ahead of market expectations of $119.9 million. But negative EPS was reported at $(0.12).

GAAP loss from operations in Q3 was $7.8 million, or 6% of revenue, compared to GAAP break-even in Q3 2021. Non-GAAP income from operations in Q3 was $4.7 million, compared to non-GAAP income from operations of $3.8 million, Y-o-Y.

Cash, cash equivalents, and investment securities were $184.5 million as of September 30, 2022.

Total units on the Property Manager platform increased to approximately 7.1 million from 6.0 million Y-o-Y.

They see revenue between $462 million to $466 million and non-GAAP operating margin as a percentage of revenue to be a loss of 1.5-2.5% for the fiscal year 2022.