Atlassian, Twilio and Five9, software-as-a-service (SaaS) companies, posted results last quarter that exceeded market expectations.

On May 1, Atlassian shares rose as much as 25 percent. Twilio climbed as much as 20 percent, and Five9 gained more than 16 percent. All three cited AI as a factor driving revenue growth.

All three posted strong revenue growth, appearing to brush aside worries about a so-called “SaaSpocalypse”, in which demand for SaaS could shrink because companies can build SaaS software themselves using AI.

Atlassian posted revenue growth of 32 percent from a year earlier, Twilio 20 percent and Five9 9 percent. Atlassian’s annual subscription revenue from AI-based service products topped $1 billion. Spending by Twilio’s existing customers also increased.

Kate Leaman (케이트 리먼), chief market analyst at AvaTrade (아바트레이드), said, “These results do not completely eliminate the SaaSpocalypse narrative, but they have created a significant crack.” She added, “This is not movement happening in a structurally declining area.”

Twilio CEO Khozema Shipchandler (코제마 십챈들러) said that because Twilio is closer to an infrastructure company, AI is a catalyst for growth rather than a threat. He said Twilio operates in areas that are difficult to replace with vibe coding.

But Business Insider reported that the results do not mean SaaSpocalypse concerns have disappeared. Leaman said, “SaaSpocalypse concerns are not about the entire SaaS sector disappearing, but about a brutal polarization between winners and losers.” She added, “These results showed the winners, but the losers still exist.”