💰 US Venture Capital Trends

Update 2023-04-28

What’s in today’s Business Edge update?

Amazon earnings skyrocket, US venture capital trends bounce back, and cloud giants Microsoft and Google surge in Q1! Catch the latest on these tech heavyweights.

In other news, Amazon AWS reports revenue growth, Dropbox trims workforce, Replit raises a cool $100M, and Snap stock takes a dive. Don't miss out on Apple's App Store stats, ServiceNow's revenue milestone, and more exciting developments!

Let’s get started!

🌍 Impactful news

Top five news we spotted during the last 48 hours that can significantly impact the tech market, sorted according to impact level.

Amazon Earnings Soar on Surging Sales and Cost Reductions

Amazon has reported a 9% increase in Q1 sales, reaching $127.4 billion and exceeding Wall Street expectations. The company's profit for the period was $3.2 billion, nearly 50% higher than anticipated.

More:

• Amazon's cloud-computing and advertising businesses performed strongly

• AWS sales growth was 15.8%, slightly above expectations

• The advertising business grew by 21%

• Amazon reduced its global headcount by 10%, laying off around 9,000 corporate employees

_{Tags: #BigTech #FinancialReport #Cloud}

Read more about it at —> (read time: 4 minutes)

Insight: We classify this news as having a Company Impact as it primarily affects Amazon and its various business segments. The surge in sales, cost reduction measures, and growth in key businesses like AWS and advertising demonstrate Amazon's resilience and strategic adaptation in challenging times.

Microsoft and Google Gain Market Share as Q1 Cloud Spending Surges

Q1 2023 saw a global increase in enterprise spending on cloud infrastructure services, exceeding $63 billion, up by over $10 billion compared to Q1 2022. According to Synergy Research Group, the year-on-year growth rate was 19%.

More:

• Microsoft and Google had stronger YoY growth, with market shares of 23% and 10% respectively

• Amazon maintained its market share within the 32-34% range

• The big three (Microsoft, Google, Amazon) accounted for 65% of the worldwide market

• Tier two providers with high YoY growth rates include Oracle, Snowflake, MongoDB, Huawei, and three main Chinese telcos

_{Tags: #Cloud #Microsoft #Google}

Read more about it at —> (read time: 4 minutes)

Insight: We classify this news as having an Industry-wide Impact, as it affects the entire cloud infrastructure services industry and showcases the growth and competitive dynamics between the major players. Microsoft and Google's increased market shares are particularly interesting for tech investors and cloud service workers.

US Venture Capital Trends Show Signs of Recovery in Q1 2023

The US venture capital (VC) market experienced a slowdown in Q1 2023, but there are indications that it may soon regain its footing. Seed valuations are on the rise, and the decline in deal-making appears to be leveling off.

More:

• VC-backed companies raised $37 billion across an estimated 2,856 deals in Q1

• Late-stage deals fell for the seventh consecutive quarter, and angel and seed-stage deals hit a 10-quarter low

• Late-stage VC deals over $50 million declined significantly, with only 55 such deals closed in Q1

• Mega-deals (over $100 million) returned to 2020 levels, with 18 early-stage, 19 late-stage, and 13 venture growth deals in Q1

• Seed-stage funding median deal size increased to $3 million in Q1, up from $2.6 million in 2022

_{Tags: #Venture capital #Startups}

Read more about it at —> (read time: 5 minutes)

Insight: We classify this news as having a Market Impact, as it primarily affects a specific market segment (venture capital) within the tech industry. The trends presented in the article, such as changes in deal-making and valuations, have implications for startups and investors within this market.

Intel Reports Record Quarterly Loss Amid Falling Sales and Revenue

Intel has reported a significant 133% annual reduction in earnings per share for Q1, with revenue dropping nearly 36% YoY to $11.7 billion. Despite the massive net loss of $2.8 billion, the results still managed to exceed Wall Street expectations. Intel's CEO, Pat Gelsinger, maintains the company is on track to compete with TSMC in chip manufacturing by 2026.

More:

• Loss per share: 4 cents, adjusted, versus 15 cents per share expected

• Revenue: $11.7 billion, adjusted, versus $11.04 billion expected

• Q2 forecast: Loss of 4 cents per share on $12 billion revenue

• Largest quarterly loss in Intel's history

• A fifth consecutive quarter of falling sales

_{Tags: #Intel #Financial report #Semiconductor}

Read more about it at —> (read time: 5 minutes)

Insight: We classify this news as having a Company Impact. Intel's largest quarterly loss and falling sales directly affect the company and its financial performance. This decline could affect company strategy and alter the competitive landscape for Intel and its market segment.

⚡️Quick news

Other news we have found of importance, but in a very short format.

Amazon AWS Q1 Revenue Grows 16%, Margin Narrows

Amazon Web Services (AWS) revenue increased by 16% in Q1, totaling $21.35 billion and accounting for almost 17% of Amazon's overall revenue. The operating margin for AWS was 24%, the narrowest since 2017.

_{Tags: #Amazon #AWS #Cloud}

Read more about it at —> (read time: 2 minutes)

Amazon Cuts Jobs in Cloud Computing, HR Departments Amid Cost-Cutting Measure

Amazon lays off employees in cloud computing and HR departments, with the largest layoff in company history impacting 9,000 employees across various units, as it focuses on top priorities.

_{Tags: #Amazon #AWS #FinancialReport}

Read more about it at —> (read time: 2 minutes)

Dropbox Cuts 16% of Workforce Amid Slowing Growth and AI Era

Dropbox lays off 500 employees, citing slowing growth and the rise of AI in computing. The company plans to invest in new areas to adapt to the changing landscape.

_{Tags: #BigTech #Cloud #AI}

Read more about it at —> (read time: 3 minutes)

Amazon Discontinues Halo Devices and Shuts Down Division

Amazon closes its health-focused Halo division, discontinuing all Halo hardware and laying off team members due to a crowded market and uncertain economy.

_{Tags: #BigTech #Health #AI}

Read more about it at —> (read time: 4 minutes)

Replit Raises $100M to Develop GitHub Copilot Rival Ghostwriter

IDE startup Replit secures nearly $100 million in funding to develop Ghostwriter, an AI-powered code-generating tool, expanding cloud services, and enhancing the core product experience.

_{Tags: #AI #Startups #VentureCapital}

Read more about it at —> (read time: 4 minutes)

Apple Reveals European App Store MAUs: iOS Leads with 101M

Apple discloses European App Store MAUs: iOS has 101M, iPadOS 23M, macOS 6M, tvOS 1M, and watchOS, Books, and Podcasts under 1M each, due to European Digital Services Act compliance.

_{Tags: #Apple #Regulation #BigTech}

Read more about it at —> (read time: 1 minute)

ServiceNow Breaks $2B Quarterly Revenue Milestone, Raises Annual Forecast

ServiceNow exceeds $2 billion in Q1 revenue for the first time, raising its full-year guidance for subscription sales and showcasing growth in the software industry.

_{Tags: #BigTech #FinancialReport #SaaS}

Read more about it at —> (read time: 4 minutes)

Pinecone Rakes in $100M as Generative AI Spurs Demand for Vector Database Solutions

Pinecone Systems raises $100 million on a $750 million valuation, fueled by the growing demand for its vector database in generative AI applications.

_{Tags: #AI #BigTech #VentureCapital}

Read more about it at —> (read time: 4 minutes)

Snap Stock Plummets 24% Amid Q1 Revenue Decline and Ad Slump

Snap misses Wall Street's revenue estimates and reports a 7% decline from last year, resulting in a 20% drop in stock value after-hours.

_{Tags: #BigTech #FinancialReport #Privacy}

Read more about it at —> (read time: 4 minutes)