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Cloud software buyers are getting frugal, leading to slower growth at former highfliers

Mar 19, 2024, 9:06 AM EDT1 sourcesAI-analyzed

AI summary

What happened, with direct paths to the underlying reporting

- Snowflake's Net Revenue Retention (NRR) decreased from 158% to 131%. - Industrywide, median NRR dropped to 111% in the fourth quarter. - Companies like Twilio and ZoomInfo also experienced declines in NRR. - End-sell pressure predicted to continue due to contracting demand and challenges. - Market showing signs of cost optimization with reduced growth rates for some companies. Price Impact Rating: Bearish Impact Horizon Rating: Short-term Type: Industry News

  • Snowflake's Net Revenue Retention (NRR) decreased from 158% to 131%.
  • Industrywide, median NRR dropped to 111% in the fourth quarter.
  • Companies like Twilio and ZoomInfo also experienced declines in NRR.
  • End-sell pressure predicted to continue due to contracting demand and challenges.
  • Market showing signs of cost optimization with reduced growth rates for some companies.

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