Is the SaaSpocalypse Over?

Q: Atlassian and Twilio hit $7B and $5.6B run rates respectively, accelerating growth and challenging t

Atlassian and Twilio hit $7B and $5.6B run rates respectively, accelerating growth and challenging the SaaSpocalypse narrative.

Q: SaaStr is paying Salesforce 83% more year-over-year due to AI agent seats while having dropped Notio

SaaStr is paying Salesforce 83% more year-over-year due to AI agent seats while having dropped Notion entirely, illustrating the uneven impact of AI on SaaS spend.

Q: Thoma Bravo wrote down $5.1B on Medallia, signaling that legacy B2B software without strong AI adapt

Thoma Bravo wrote down $5.1B on Medallia, signaling that legacy B2B software without strong AI adaptation faces severe valuation risk.

SaaStr·Saturday, May 2, 2026·1 min read

SaaS AI/ML Business

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AI Summary

Atlassian and Twilio reported strong quarterly results with run rates of $7B and $5.6B respectively, challenging the narrative of a SaaSpocalypse in B2B software. The newsletter also explores how AI agents are disrupting traditional seat-based SaaS pricing models, with SaaStr reporting paying Salesforce 83% more year-over-year while completely dropping Notion. Thoma Bravo wrote down $5.1B on Medallia, underscoring the uneven impact of AI on legacy software investments.

Key Facts

✓Atlassian and Twilio hit $7B and $5.6B run rates respectively, accelerating growth and challenging the SaaSpocalypse narrative.

✓SaaStr is paying Salesforce 83% more year-over-year due to AI agent seats while having dropped Notion entirely, illustrating the uneven impact of AI on SaaS spend.

✓Thoma Bravo wrote down $5.1B on Medallia, signaling that legacy B2B software without strong AI adaptation faces severe valuation risk.

Author Takes

BearishSaaStr

SaaS moats in the age of AI

Many B2B software companies still have moats, but moats alone are no longer sufficient for long-term survival as AI agents can replicate features rapidly and customer expectations are evolving faster than incumbents can adapt.

BullishSaaStr

SaaSpocalypse narrative

Atlassian and Twilio's accelerating growth challenges the prevailing narrative of SaaS decline, suggesting the SaaSpocalypse may be overstated for companies successfully integrating AI.

Contrarian Angle

AI Agents Increasing SaaS Spend for Some, Eliminating It for Others

SaaStr reports paying Salesforce 83% more year-over-year due to AI agent seat expansion, while completely eliminating spend on Notion — showing AI creates winner-take-most dynamics within a company's software stack.

Conventional wisdom says AI will reduce overall SaaS spend; instead it is concentrating spend on platforms that support agents while eliminating tools that don't adapt.

null replacing Notion

SaaStr stopped using Notion entirely, attributed to the AI agent seat problem making the tool redundant in their stack.

Engineers switching from Notion to null

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AI Summary

Key Facts

Author Takes

Contrarian Angle

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