SaaStr

OCTOBER 11, 2023

Overall subscription solutions revenue is up just 21%, while payments and merchant solutions are up 35% — from a much, much larger base. #2. But the explosion of SMB commerce and the price increase to the SMB Shopify plans has meant Plus revenue growth hasn’t outpaced the overall growth of the company’s SMB base.

Payments 228

Payments Merchant Services Payment Solutions Revenue 228

FastSpring

SEPTEMBER 16, 2022

With over eight years of experience in SaaS, the large majority of which are within SaaS payments and billing, Tony is constantly immersed in growth driven projects and dialogues with SMB and Enterprise SaaS companies looking to scale. No matter what your business model, we meet you where you are. About FastSpring.

Pricing 132

Pricing Payment Solutions Payment Services SaaS Payments 132

SaaStr

AUGUST 30, 2021

Started 10 years ago as “Freshdesk” and a low-end / SMB helpdesk to rival Zendesk, Freshworks has since expanded its product footprint across IT management (Freshservice) and CRM (Freshsales) to a stunnning 49% growth rate at $350m in ARR. 62% of revenue from annual subscriptions. Headquartered in the U.S., NRR of 118%.

Scale 345

Scale SMB Scaling Subscription 345

FastSpring

JANUARY 27, 2022

Note: FastSpring offers advanced subscription management services that support free trials, monthly and annual paid plans, proration, discount management, and more. How Castos upsells subscription tiers. His podcast hosting company uses data analytics that looks at which users are most likely to grow out of their current subscriptions.

Merchant Services 132

Merchant Services Payment Services SaaS Payments Payment Solutions 132

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. One of the most interesting examples is Microsoft’s Office 365 SMB business. It’s the most successful SMB SaaS acquisition channel ever built. by Thomas Hansen.

Outsourcing Services 109

Outsourcing Services SMB Acquisition Scale 109

FastSpring

OCTOBER 18, 2018

In other words, we are now in an era of subscriptions, in which businesses are progressively moving towards subscription-based business models. With subscriptions poised to disrupt the traditional business model, it’s only natural for you to wonder if offering a subscription model can benefit your business.

Payment Features 61

Payment Features Payment Services Subscription Payment Methods 61

SaaStr

FEBRUARY 17, 2021

While their core web site “Creative Subscriptions” are growing at a still impressive 23% year-over-year, their Business Solutions segment with ecommerce and more are growing 60% year-over-year at $200m in ARR. Efficient at SMB marketing — an ~8 month CAC. Efficient at SMB marketing — an ~8 month CAC.

Payment Methods 266

Payment Methods Payment Solutions Payments SMB 266

Andreessen Horowitz

APRIL 23, 2024

Both of you sell into SMBs, which is a notoriously difficult segment. One of the holy grails of SMB software is, how are you going to acquire customers? Immad: I find it funny that everyone complains about the difficulty of SMB and consumer customer acquisition, but ironically, SMB and consumer companies are some of the most valuable.

Payments 96

Payments Forecasting Payment Services Payment Solutions 96

SaaStr

APRIL 19, 2023

One leader in SMB commerce is Lightspeed Commerce, founded way back in 2005. And their mix of software, payments and hardware revenue drives up the total deal size — but puts a lot of pressure on margins. Software subscriptions are only growing 9%, vs. 41% for payments / transaction revenue. #2.

Payment Solutions 227

Payment Solutions Point of Sale Payments SaaS Payments 227

SaaStr

MARCH 8, 2024

Should it be subscriptions, usage, solutions, or something entirely different? The most common pricing models are: Subscription — per seat or user, freemium, per product with add-ons Consumption — how much you’re using. If so, keep a simple subscription model. Snowflake is a symbol of usage-based pricing.

AI 187

AI Artificial Intelligence Pricing SaaS 187

SaaStr

MAY 8, 2021

Squarespace is at $700m ARR and has 3.7m “unique subscriptions” although it’s unclear how many unique customers that is. Wix is at $1B ARR, worth $15B and added 1 million new subscriptions in 2020. Both it and Wix are a bit murky on customer count vs “subscriptions”, but those are the data we have. More here. More here.

SMB 199

SMB SaaS Subscription Payment Features 199

SaaStr

NOVEMBER 2, 2022

The core product is very B2C, but the upgrade to paid has very SMB B2B metrics, and 80% of the revenue is subscription based. So it’s doing what Wall Street wants today. But is Duolingo SaaS? Well, it’s SaaS-ish. So at a minimum, it’s a good one to learn from, especially in this PLG and freemium world.

Scale 289

Scale B2C SMB B2B 289

SaaStr

APRIL 17, 2021

Monetizing ecommerce via subscriptions, but not payment processing. Rather, it charges for software subscriptions to take payments on its websites. It’s very helpful to see this called out for SMBs, and is pretty low for a public SaaS company. But perhaps not that uncommon for higher-churn SMB categories.

Payment Methods 325

Payment Methods Merchant Services Payments Payment Services 325

Tom Tunguz

APRIL 16, 2013

At first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. Successful SMB SaaS companies have reinvented their businesses eschewing the expensive enterprise sales model in favor of end-user centric marketing, support and product development.

SMB 100

SMB Scale Startup SaaS 100

Tom Tunguz

SEPTEMBER 17, 2012

SMB SaaS companies cannot afford to pay for distribution. At 2 to 4% conversion to paid rates and $5 to $10 monthly subscription fees, the breakeven CPC for these products on search is $0.40. The most successful SMB SaaS companies (Zendesk, Expensify, Square) build communities to drive distribution.

SMB 100

SMB SaaS Branding Subscription 100

SaaStr

NOVEMBER 28, 2022

was pretty simplified, mostly made up of annual or monthly subscriptions. From 2010 until 2015, the SaaS world was becoming more complex with the introduction of static bundles and recurring revenue as an addition to the annual/monthly subscription model. Era 2, SaaS 2.0: Era 3, SaaS 3.0: New service offerings.

Scale 192

Scale Finance Sales Hiring Scaling 192

Tom Tunguz

APRIL 25, 2012

On first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. SMB SaaS companies sell to a radically different market than enterprise software companies. On the other hand, SMB SaaS companies sell to firms with 10 employees and $400k in annual payroll.

SMB 100

SMB Scale SaaS compliance 100

SaaStr

NOVEMBER 19, 2020

Subscriptions can fuel payments and merchant revenue. As more and more SaaS apps add a payments element, that payments element can really scale over time. As more and more SaaS apps add a payments element, that payments element can really scale over time. You can be both SMB and enteprise consistently.

Payments 334

Payments Merchant Services Payment Solutions Scale 334

Tom Tunguz

JANUARY 26, 2021

Then, consumer subscription businesses began pitching using ARR. After all, there’s not much difference between an SMB paying monthly and a consumer paying monthly.

SMB 277

SMB Trends Startup Subscription 277

Neil Patel

DECEMBER 8, 2020

Clockify – Best Reporting Features Time Doctor – Best for Employee Monitoring Toggl Track – Best for Holding Everyone Accountable TSheets – Best for GPS Monitoring Tick – Best for SMB Time Management. A lot of companies use time tracking software to streamline payroll and invoicing. Monitoring.

Payment Solutions 140

Payment Solutions Software Payment Methods Payments 140

SaaStr

APRIL 8, 2020

Click here for ChartMogul’s free-forever launch plan that will give SaaS businesses access to the world’s first subscription data platform so they can analyze and improve key metrics like MRR, churn and LTV. Hiver’s Free Shared Inboxes for SMB. What are they all about? What are they all about?

Machine Learning 211

Machine Learning Artificial Intelligence SaaS Consulting 211

SaaStock

JANUARY 25, 2019

Its focus is on helping companies handle financial routine and streamlining processes related to accounting, banks, stock, and electronic invoicing, among others. Omie main goal is to bridge the efficiency gap in Brazilian SMB, helping customers to be more prosperous. The tool supports multi-currency billing and electronic invoicing.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

Clouded Judgement

APRIL 11, 2024

For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.

Cloud 177

Cloud Software Azure AWS 177

SaaStr

DECEMBER 14, 2020

Folks churn out of their Verizon plan, their Netflix subscription, etc. In a low-end subscription model for a tool, not a solution (e.g., Churn is a good term for your SMB and freemium customers. semi-commodity storage, semi-commodity hosting, etc. the dynamics are similar. Like Verizon.

Churn 362

Churn Sales Hiring Systems Review B2C 362

BrightBack

APRIL 6, 2020

The subscription industry is facing intense change as the landscape matures and companies race to stop customer churn related to the Covid-19 pandemic. The subscription industry is entering a retention-led phase of growth. The subscription industry is entering a retention-led phase of growth.

Subscription 59

Subscription Payment Features Retention Payment Methods 59

SaaStr

JULY 14, 2020

It may be the most successful SMB-focused app of our current generation. If they churn at the end of a yearly subscription, or 6 months into a monthly one, they’re still gone. Let’s take a look at Zoom. Zoom is even crazier now of course, but Zoom was growing > 100% at $500m in ARR, in an already well-established space.

Pricing 212

Pricing Payment Solutions Scale SaaS Payments 212

SaaStr

FEBRUARY 14, 2023

Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. For SMB-facing companies, over 110% should be your goal. It’s critical to show investors that you’re bucking the trend of many companies today that generate less demand and aren’t hitting numbers.

Metrics 201

Metrics Marketing SaaS SMB 201

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Sales Hacker

AUGUST 26, 2021

The industry ranges are around six to nine months for MM/Enterprise sales and three to five months for SMB sales businesses. Bookings vs. invoices. As a rep, a comp plan based on bookings is much more beneficial to you than one based on invoices. to choose invoices over bookings, but as a rep, bookings keep things much simpler.

Software Review 97

Software Review Compensation Payment Features Underperforming Technical Team 97

Intercom, Inc.

JANUARY 23, 2020

Just look at subscription analytics startup ChartMogul whose brand and product are now a household name in the SaaS community. Barely over five years old, the company has analyzed over 200 million subscriptions and over a billion customer transactions. But, still, it’s not impossible. Today they boast more than 20 integrations.

Underperforming Technical Team 183

Underperforming Technical Team Scale Payments Payment Services 183

Clouded Judgement

MARCH 22, 2024

For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. In New Relic’s case, moving from subscription to consumption based usage has increased net revenue 15%. The multiples just don’t support it.

Scale 288

Scale Outsourced Development SMB Cloud 288

Payrix

MAY 14, 2024

Before joining Worldpay for Platforms, he was CRO at Chargebee, a subscription revenue management platform that manages billing subscriptions and payments for companies throughout the world. I mean, we have a PayFac customer right now, that’s transitioning their whole payments model. We had that in Europe.

Payments 147

Payments Payment Services Payment Solutions SaaS Payments 147

Clouded Judgement

DECEMBER 21, 2023

For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

APRIL 14, 2023

Enterprise will likely have a different problem set vs. an SMB. Many customers in SE Asia are budget-based versus subscription-based. Mistake #3: Misunderstanding The Needs Of Your Geographic Market Founders are always looking to resolve a key burning issue or problem set. SE Asia, China, and other places.

Development Team Review 211

Development Team Review Technical Review Underperforming Technical Team SMB 211

SaaStr

APRIL 28, 2019

All the great SaaS companies IPO’ing now have strong revenue retention, whether SMB or enterprise focused. Revenue Retention / Net Negative Churn of 143%. A continued them of our 5 Interesting Learnings Series. Not burning that much cash. Yes, Slack has not been as efficient as Zoom. Again, having a viral app helps a lot here.

Scale 276

Scale Venture Capital SMB Enterprise 276

Chart Mogul

MAY 21, 2024

For example, combining subscription billing data from Stripe and Chargebee, and customer data from Intercom and your own database. These tags can then be used by your whole team in Subscription Analytics, CRM or in any other tools which rely on ChartMogul data. Mark less valuable customers as Self-Service.

Headcount 52

Headcount SMB Sales Team Automation Subscription 52