FastSpring

MAY 25, 2023

FastSpring previously presented on SaaS fees pricing and packaging to combat stagflation in 2022, but this article is based on an updated presentation delivered in March 2023 by David Vogelpohl. This article offers tips for optimizing pricing and packaging of your SaaS products in a less-than-stellar economy: What is stagflation?

SaaS Payments 147

SaaS Payments Pricing Payments Merchant Services 147

SaaStr

MAY 27, 2024

Ok the title here is a bit dramatic, but certainly seed investing is in an odd place in 2024. Harry and Jason did a deep dive on this and so much more here: Intro (00:00:00) Seed investing is broken due to limited founders capable of triple-digit growth. The best investments grow from $1 million to $10 million in 5 quarters or less.

CTO Hire 176

CTO Hire Development Team Review Software Review Technical Review 176

FastSpring

SEPTEMBER 16, 2022

But what about pricing? When FastSpring’s Chief Product Officer Kurt Smith worked with growth-stage to Fortune 100 companies at Accel-KKR, he consistently saw pricing as one of the most essential growth levers they employed to meet their next revenue goal. Why You Shouldn’t Trust How Your Competitor’s Price.

Pricing 132

Pricing Payment Solutions Payment Services SaaS Payments 132

User Pilot

MAY 1, 2024

Are you overwhelmed by too many customer metrics and don’t know which ones to track for your SaaS? You’ll also see how to use product analytics tools to track your customer metrics in one place and save time. TL;DR Customer metrics are data points used to track, measure, and analyze various aspects of the customer experience.

Metrics 84

Metrics Customer Lifetime Value SaaS Scale 84

SaaStr

MARCH 24, 2021

Generally, companies are split into different valuation types: Value Investing: Based on the company’s profits. Growth Investing: Based on revenue growth. The Five Metrics to Help Increase Your Value. # Sales efficiency reveals how much gross profit you generate when you invest in sales and marketing efforts.

Metrics 230

Metrics Banking Benchmarks Investment 230

Buffer Resources

FEBRUARY 28, 2024

And you don’t get “business” status without understanding pricing. So, together with creator sponsorships expert Justin Moore , who helps creators negotiate partnerships through Creator Wizard , we put together this resource on how to figure out your pricing as a creator.

Pricing 100

Pricing Social Media Consulting Branding 100

User Pilot

MARCH 12, 2024

Tracking the right company activity metrics can help you measure and optimize your company’s performance, driving product growth. In this article, we will examine 14 of the most important activity metrics, how they function, and how you can monitor them closely. Book a demo to learn more.

Metrics 89

Metrics Scale Customer Lifetime Value Business 89

SaaStr

AUGUST 7, 2023

Learn about the most important SaaS metrics for founders in 2023 with the CEOs of the most metric-oriented company, monday.com, and the founder of SaaStr. For a quick recap on SaaS metrics: What is ARR in SaaS? Then the Boom happened, and everyone could justify insane investments, and it warped everything.

Metrics 185

Metrics SaaS Sales Hiring Finance 185

SaaStr

APRIL 17, 2024

They’re still transitioning from onprem / appliciance model to cloud, which makes some of the metrics a touch confusing. For me, Net New Customer Count has become the metric I obsess the most about at scale. But it’s decided to keep investing heavily in growth. Since then, we’ve had just one — Klaviyo.

Scale 216

Scale Pricing Scaling Cloud 216

SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 196

Pricing Scale Retention AI 196

Clouded Judgement

JULY 14, 2023

” I looked at 3 key metrics: LTM Revenue, Revenue Growth and LTM FCF Margins. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. There may be a mad dash to go public before this happens.

Cloud 130

Cloud Metrics Scale Software 130

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Ensures You Attract the Right Customers When Should You Increase Your Pricing?

Pricing 111

Pricing SaaS Scale Churn 111

User Pilot

MAY 21, 2024

Additionally, the annual churn rate is a critical metric that quantifies the percentage of customers lost over a year, offering insights into long-term customer satisfaction and loyalty. It’s a key metric for assessing customer satisfaction and retention. Understanding why customers churn is crucial for retention strategies.

Churn 52

Churn Retention Software Review Metrics 52

Clouded Judgement

MARCH 29, 2024

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. I created this subset to show companies where FCF is a relevant valuation metric. This is for information purposes and should not be construed as an investment recommendation.

Cloud 278

Cloud Forecasting Subscription Payment Features 278

Tom Tunguz

AUGUST 26, 2019

To put the company’s stellar trajectory in context, I’ve plotted its metrics relative to two other incredible monitoring companies: NewRelic (NEWR) and AppDynamics (APPD). Here’s why: For every dollar of sales and marketing investment, DataDog generates $1.68 DataDog is playing across price points.

Metrics 189

Metrics Benchmarks Scale User Experience 189

Clouded Judgement

MARCH 1, 2024

” I heard that a lot in 2021, and unfortunately not many call options hit… It’s hard to invest at 100x ARR and exit at 10x and make a return VCs aim for. Update on Q4 Earnings One metric I love tracking in net new ARR added in a quarter. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 311

Cloud AI Investment Metrics 311

Clouded Judgement

MAY 17, 2024

in March) Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 152

Cloud Subscription Payment Features Metrics 152

SaaStr

APRIL 19, 2024

He’s invested in startups as a VC since 2013 and has 10x his fund. Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. As soon as you see a cluster in England, Chile, and Brazil, invest in and support it.

Engineering 233

Engineering Business Model Pricing Scaling 233

Clouded Judgement

APRIL 19, 2024

Subscribe now Rubrik IPO Update This week Rubrik launched their IPO with an initial pricing range of $28 - $31 / share. The table below lays out a few stats at different share prices. I’ll update this table if / when they update the pricing range. Altimeter is an investment adviser registered with the U.S.

Cloud 141

Cloud Scale Subscription Payment Features 141

Clouded Judgement

MAY 24, 2024

They don’t guide to total revenue Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 152

Cloud Software Scale Headcount 152

ChurnZero

JUNE 9, 2023

8 metrics to position Customer Success as a profit center with finance While sentiment-based metrics like Net Promoter Score ® (NPS) and customer satisfaction are important, they don’t frame CS work from a financial perspective. To that end, here are the metrics you can use to get started. Did pricing go up too far?

Finance 98

Finance Metrics Customer Success Headcount 98

SaaStr

NOVEMBER 17, 2023

So one thing that has exploded in SaaS in the past decade is the role of Private Equity buying both public SaaS companies (to take them private, “fix” some metrics, and IPO or sell them again), and generally later-stage private SaaS companies. PE wants to invest in leaders, if not necessarily always #1 in a category.

AWS 234

AWS SaaS Pricing Acquisition 234

Baremetrics

SEPTEMBER 26, 2021

There might not be an industry more addicted to its metrics than SaaS, and there is good reason for it. But how many SaaS financial metrics are you really tracking? Baremetrics gives you all the key metrics for your business, including MRR, ARR, LTV, total customers, and more. What are metrics? What are metrics?

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

User Pilot

MARCH 29, 2023

Is the cost of Amplitude pricing worth the investment for you? In this article, we’ll dive into Amplitude’s pricing structure, plans, pros, and cons. Amplitude has a freemium pricing model with one free and two premium plans: Growth and Enterprise. Amplitude pricing plans. and starts at $995/month.

Pricing 81

Pricing Software Review Scale Customer Support 81

Tom Tunguz

MARCH 18, 2019

Let’s first look at one of the key SaaS metrics: the dollar attention. Sales efficiency is a measure of the marginal gross profit generated by a dollar invested in sales and marketing. In terms of price point, PagerDuty is right around the $10,000 revenue per customer per year. The average customer is worth about $10,000.

Metrics 194

Metrics Benchmarks Software Review Engineering 194

SaaStr

DECEMBER 29, 2023

In part two we head into IPO waters, how to incorporate AI into your products, the best way to drive employee performance, pricing models, and much more. Q: As you scale, how metrics-oriented should the company be? ARR asks Jason how he sees the best companies steering into metrics and KPIs to drive performance at a leadership level.

Scale 219

Scale Sales Hiring Customer Success AI 219

Clouded Judgement

FEBRUARY 9, 2024

Going in to this earnings season I expected a big driver of stock price performance to be how 2024 full year estimates change pre / post earnings. Since the macro feels more “stabilized” it felt fair to assume “are numbers going up or down” to be the question most correlated with stock price performance.

Cloud 195

Cloud Pricing Startup Revenue 195

OPEXEngine

JUNE 2, 2021

Smart pricing enabled process management software provider Cherwell to get the most from its subscribers while new businesses languished. ” Key metrics. . ” Key metrics. ” His calculations helped him make the case for maintaining full-value pricing during the downturn. ” Process efficiency. .’

Metrics 52

Metrics Pricing Airlines Sales Hiring 52

OpenView Labs

APRIL 8, 2021

The response since the usage-based pricing playbook has far exceeded my expectations. My TechCrunch byline went semi-viral, Bessemer named usage-based pricing part of the “ new normal ” for SaaS go-to-market strategy, and Alex Wilhelm said it’s “ one theme that’s come up time and again ” in public company earnings calls.

Pricing 97

Pricing Scale Subscription Payment Features 97

Sixteen Ventures

AUGUST 14, 2022

The people in charge of your company – the Executives, Board, and Investors – want to improve a metric called NRR (Net Revenue Retention or NDR, Net Dollar Retention, if you prefer) for one very simple reason: it plays a direct role in the value of the company. Thus the premium placed on NRR as a valuation metric.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

User Pilot

OCTOBER 24, 2023

Keeping an eye on such growth metrics, also known as growth analytics , is crucial for business success. By tracking growth metrics , you can uncover potential problem areas, as well as possible avenues for revenue growth, and much more. In this article, we will discuss the 10 most crucial growth metrics you should be tracking.

Metrics 76

Metrics Customer Lifetime Value Churn Acquisition 76

SaaSOptics

APRIL 14, 2022

SaaS pricing is typically done on a subscription basis where customers pay a recurring monthly or annual fee to use a company’s software. In recent years, usage-based pricing has become popular amongst growing SaaS companies and their customers—but is it the right choice for your business? Types of Pricing Models.

Payments 98

Payments Pricing SaaS Payments Payment Services 98

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This has all resulted in the median stock price declining 5% YTD.

Cloud 177

Cloud Software Azure AWS 177

Clouded Judgement

MAY 3, 2024

Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. I created this subset to show companies where FCF is a relevant valuation metric.

Cost optimization & reporting 183

Cost optimization & reporting Cloud Software Azure 183

User Pilot

AUGUST 31, 2023

As more customers are acquired, the company’s revenue stream expands, enabling it to invest in product development, innovation, and scaling operations. Notion’s pricing plan. No single metric can 100% tell you how your acquisition efforts are coming along. The key metrics to track include CAC, LTV, and ARPU.

Acquisition 85

Acquisition SaaS Payments Payment Methods Metrics 85

Clouded Judgement

APRIL 26, 2024

The full quote is below: “We expect capital expenditures to increase materially on a sequential basis driven by cloud and AI infrastructure investments. We continue to bring capacity online as we scale our AI investments with growing demand. I created this subset to show companies where FCF is a relevant valuation metric.

Azure 177

Azure Cloud Software AI 177

SaaStr

MARCH 27, 2024

To me, this is just the impressive metric of all. ACV Basically Flat at $11,365 This is likely a “macro” impact as well in part — as well as the fact that HubSpot continues to invest in its smaller starter customers. Despite raising prices and selling more products, HubSpot ACV is basically flat at $11,365.

Scale 230

Scale Cloud Scaling Pricing 230