Qualtrics above expectations 💪

And also: The best VC's for an IPO exit 🎓, Bullish on Microsoft Azure ☁️, SAP Q3 results ✅

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

Today we bring you:

Qualtrics earnings beat

Best SaaS VC for IPO exit

Investors bullish on Microsoft cloud business

SAP Q3 results

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Qualtrics announced Q3 solid results with a 39% increase in revenue growth at $377.5M and non-GAAP earnings of $26.4 million or $0.04 per share.

  • Recorded operating loss of $(239.9) million, compared to $(277.5) million one year ago.

  • Non-GAAP operating income was at $22.6 million v/s $13.3 million.

  • GAAP operating margin was (64) % v/s (102) % and non-GAAP operating margin was 6% v/s 5% one year ago.

  • Net loss was $(233.5) million, or $(0.40) per share, compared to $(286.0) million, or $(0.56) per share in Q3 2021.

  • Total cash and cash equivalents were at $731.7 million.

The company issued upside guidance for Q4 and see EPS of $0.02-$0.03, excluding non-recurring items. It expects total revenue between $380 and $382 million and a non-GAAP operating margin between 5.5% and 6.5% in Q4.

Qualtrics updated its guidance for its full year ending December 31, 2022. And expecting total revenue between $1,450 and $1,452 million and subscription revenue between $1,219 and $1,221 million. Expecting Non-GAAP operating margin of 4%.

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Finding the most successful VC firm by looking at 71 SaaS IPOs of the last three years and their major investors. The list includes 46 major investors.

  • Accel (11 IPOs), Sequoia (9 IPOs), ICONIQ (7 IPOs), Insight (5 IPOs), and Tiger (7 IPOs) are on top of the SaaS IPO list.

  • Thirteen venture firms have 3 or 4 IPOs, including Bessemer, August, and Battery.

  • 28 of the 46 investors have 1 or 2 IPOs.

  • Surprisingly, Softbank only has 1 IPO.

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Analysts are closely watching Microsoft's cloud business and strongly believe Cloud is going to play a vital role in their long-term growth story.

Microsoft Cloud revenue came in at $25 billion in the most recent quarter, representing nearly half of the company's total revenue and up 28% year-over-year.

Microsoft is ahead of the pack with its high-tech cloud platform, making them among the investors' top picks. Microsoft will release its FY'Q1 earnings report on the 25th of October.

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SAP cloud revenue was up 38% and was up 25% at constant currencies in Q3. The current cloud backlog was 38% up and 26% up at constant currencies. SAP S/4HANA's current cloud backlog is up 108% and up 90% at constant currencies. IFRS cloud gross profit is up 44%, non-IFRS cloud gross profit is up 42%, and up 30% at constant currencies. IFRS operating profit is down 1%, and non-IFRS operating profit is down 8% at constant currencies.

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