Shopify up 22% this quarter, compared to 16% last quarter
don’t call it a recession pic.twitter.com/8zfmmrZzsC
— Jason B Kind✨ Lemkin (@jasonlk) 28 October 2022
It was an interesting week in terms of reading the tea leaves on what’s happening in SaaS, Cloud, Economy and more. The pressure is certainly up, however, unemployment remains at record lows and consumer spending remains strong.
This week we learned two things from leaders in their categories:
First, eCommerce is back. Shopify reported 22% growth this quarter, up from 16% last quarter. Few others besides Zoom grew faster than Shopify during the lockdown, and both crashed hard as the world reopened. In the world of ecom, everyone was wondering – when will we be back to normal? Looks like we have, and we are over the Covid hangover in eCommerce. I’ve also seen it in the leaders in ecom that I’ve invested in, like Gorgias.
But it wasn’t all roses this week among industry leaders. Cloud infra’s side has been good, but growth has been slow.
Second, AWS, Azure and Google Cloud all grew well, and are still growing like a weed – but the growth rate slowed. AWS and Microsoft Azure all reported working more customers to check spending and manage their bills more carefully. The investigation into SaaS and Cloud seems to be the topic of the day.
So the good news is that the bellwethers in SaaS are still growing at strong rates. eCommerice is back on track, and overall Cloud remains on a tear. But the pressure has mounted, as have customer expectations. Maybe as it should be.
Published 28 October 2022