Reports of the death of SaaS may have been greatly exaggerated.<\/p>\n
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Shares of software-as-a-service companies Atlassian, Twilio, and Five9 soared on Friday morning after reporting earnings beats on Thursday.<\/p>\n
Each of the companies cited AI as a reason for accelerating revenue \u2014 the very same technology that has pummelled their share prices this year over fears that companies could use AI to build the software they sell.<\/a><\/p>\n Atlassian’s share price was up as much as 25% in premarket trading on Friday morning, Twilio rose as much as 20%, and Five9 gained 16% and continued to rise at market open. Atlassian and Twilio pared some of those gains an hour after market open, while Five9 was up more than 20%.<\/p>\n Revenue at Atlassian, which provides project collaboration software, was up 32% year over year. Twilio, which provides cloud-based communications tools, reported revenues up 20% compared to last year, while contact center company Five9 saw revenues grow by 9%.<\/p>\n While the results were strong, it doesn’t mean the so-called SaaSpocalypse<\/a> is over, Kate Leaman, chief market analyst at AvaTrade, told Business Insider.<\/p>\n “Last night’s results from Atlassian, Twilio, and Five9 won’t kill the SaaSpocalypse narrative entirely, but they do put a significant dent in it,” Leaman said.<\/p>\n The company’s results and soaring share prices are “not the behavior of a sector in structural decline,” she added.<\/p>\n Twilio CEO Khozema Shipchandler told Business Insider’s Rosalie Chan<\/a> that he sees AI as a catalyst for business because Twilio is more of an infrastructure company, and that people can’t vibe code much of what it does.<\/p>\n It’s similar messaging from the leaders of other software companies whose share prices have been battered by SaaSpocalypse fears.<\/p>\n Dan Rogers, the CEO of work management company Asana, previously told Business Insider that its software can help businesses manage AI agents<\/a>, driving up demand for its software. Asana’s share price is down 51% since the start of the year.<\/p>\n ‘The losers are still out there’<\/p>\n Investors in Atlassian, Twilio, and Five9 appear to have bought the AI-boosterism argument.<\/p>\n “All three pointed to AI adoption as the reason enterprise customers are signing larger and longer commitments,” Leaman said.<\/p>\n “Atlassian’s AI-powered service products crossed $1 billion in annualized revenue. Twilio’s existing customers are spending more, not less. That is a meaningful shift from the doom-and-gloom thesis that AI would cannibalize SaaS spending,” she added.<\/p>\n While those three companies have shrugged off some of the SaaSpocalypse fears for the moment, they are just a small slice of the software market.<\/p>\n