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Sensor Tower · Abraham Yousef · September 2023
MMM: SaaS App Post-Pandemic Performance, Apple iPhone Sales and Services Revenue Analysis
Zoom has faced challenges in growing its user base after the pandemic, while Microsoft Teams has experienced steady growth. Teams' success may be due to its inclusion in the Office suite. Okta has used its security platform to drive its advertising strategy and user growth. Apple's main revenue sources, iPhone sales and services, are analyzed by using Sensor Tower data to assess their performance.
Key Takeaways:
Per ST data, mobile app MAUs for Zoom have fallen an average of 22% YoY since 4Q21 compared to +5% YoY for Microsoft Teams. While Teams offers similar features and functionality as Zoom, the platform benefits heavily from being available as a bundled offering with the broader Microsoft Office suite
Further exemplifying the reliance of Office suite users on Teams, likely driven by its convenient bundling, ST data shows that users of the Microsoft Excel app spent 18% more time on Teams in Aug’23 than the average Teams user while Excel app users on Zoom spent 6% less time on Zoom than the average Zoom user
Okta’s positioning as an integral security platform has likely helped it outperform its SaaS peers in user growth: Per ST data, Okta Verify mobile app MAUs increased an average of 52% YoY from 1Q20-3Q23 QTD vs +23% for Workday and +14% for Asana
Pathmatics by ST data shows that Okta significantly outspent both Workday and Asana on LinkedIn’s ad network from May’23-Aug’23 each by +40%. Okta’s top two ads (by overall impressions on LinkedIn) both mentioned the word “security” and each amassed +10mn impressions
ST app downloads of the Apple Store app (typically used by consumers to pre-order or order new Apple products) have historically surged upon the release of new iPhones. In 2019 and 2020 (upon the release of the iPhone 11 and 12, respectively), downloads of the Apple Store app soared 400% WoW. For the releases of the iPhone 13, 14, and 15 in 2021, 2022, and 2023, respectively, Apple Store app downloads soared ~750% WoW
Another material portion of Apple’s overall top-line revenue is its reported services revenue (~20% of total revenue in FY22). ST IAP rev has been a great predictor of growth in Apple’s reported services revenue: In 2Q23, Apple’s reported service revenue increased 8% YoY, directionally inline with ST’s overall IAP revenue for the Apple App store (+6% YoY)
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