Protected Revenue

With covid affecting many corporations. The first thing I did in late Feb and early Mar, was to cut any corporation that would have large negative impacts to revenue. I kept all the SaaS corporations and a few others corporation that have great balance sheets.

After doing some negotiating on my business lease and insurance payments, I started to think that SaaS revenue can also have renegotiated and/or deferred payments. The SaaS corporations don’t really want to negatively impact a business that is going through a tough time since they depends on their solvency for future revenue.

I am mostly concerned with corporations such as AYX that are not experiencing tailwinds. They guided lower but this time they may not be sandbagging. Since AYX is pretty pricey per seat I wouldn’t be surprised if we start seeing more deferred revenue (which may not get paid) and cheaper contract renewals.

Do you guys see any other corporations that may be affected if suddenly more businesses started to renegotiate software costs?