SaaStr

APRIL 18, 2021

The reasons are many, but I think they can almost all be summed up in one key factor: SaaS compounds. It means it’s really, really hard to get revenues going. You close a customer for $120 in annualized revenue, you only get to recognize $10 of that a month. Tons of work, tiny revenues to start.

SaaS 317

SaaS Travel Churn Revenue 317

SaaStr

AUGUST 7, 2023

ARR stands for Annualized Recurring Revenue, although its real-world definition has evolved over time. As you’ll learn further down in this article, ARR now means any type of software-related revenue with 100%+ Net Revenue Retention (NRR), even if it’s not truly recurring. And it’s possible!

Metrics 196

Metrics SaaS Sales Hiring Finance 196

Stax

FEBRUARY 26, 2024

We can see this trend in action in the realm of payment processing with the advent of recurring payments, also known as automatic payments. So, let’s dive into the realm of recurring payments and how they can benefit your business. Learn More What are Recurring Billing and Payments? How Do Recurring Payments Work?

Payment Services 88

Payment Services Payment Features Merchant Services Payment Methods 88

Stax

MARCH 6, 2024

For businesses offering subscriptions, memberships, retainers, and other recurring services, recurring billing is a powerful solution to streamline processes and ultimately enhance revenue generation. Users are used to recurring charges, and businesses are primed to take advantage. Learn More What is Recurring Billing?

Merchant Services 88

Merchant Services Payment Services Payment Methods Payment Features 88

Tom Tunguz

JANUARY 26, 2021

The valuation multiples on annual recurring revenue are the highest across startup categories. Unlike the public markets, which typically use enterprise-value-to-forward-revenue multiples, the venture industry standardized on market-cap-to-forward-ARR. One of the key terms is ARR, which is annual recurring revenue.

SMB 278

SMB Trends Startup Subscription 278

Stax

FEBRUARY 21, 2024

So, of course when it came to revenue-driving activities, Ford knew that success in marketing—and business—wasn’t about how much your marketing spend is, but how efficiently you spend it. Enter the SaaS Magic Number, which measures the return on sales and marketing spend in generating new subscription revenue.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

Stax

JANUARY 28, 2024

The most potent benefit of the subscription-based business model is that companies are guaranteed a fixed revenue stream—if they can retain their customers or subscribers. Subscription billing and recurring billing are the backbone of any subscription business model. Recurring billing is a perfect fit for subscription businesses.

Payment Features 88

Payment Features Payment Methods Payment Solutions SaaS Payments 88

Tom Tunguz

OCTOBER 18, 2020

Most high-growth software investors value public companies on enterprise value to forward revenue multiple. But investors in private companies use a different metric, enterprise value to forward annual recurring revenue (ARR).The The public markets project revenue for the next 12 months.

Software Review 363

Software Review Finance Enterprise Acquisition 363

SaaStr

SEPTEMBER 8, 2022

We wanted to give a special shout-out to some of our newest sponsors for SaaStr Annual 2022. At the 8th ever SaaStr Annual, ~200 of the best and hottest companies on earth will go BIG as partners/sponsors. Join these incredible companies to experience all the value of SaaStr! Welcome to Payfac-as-a-service.

SaaS Payments 222

SaaS Payments Payment Services PayFac as a Service Payfac 222

Clouded Judgement

SEPTEMBER 12, 2023

The 62 companies that I’ll discuss here (which is not an exhaustive list, but is still comprehensive) all reported quarterly earnings sometime between July 27th – September 8th. Over my years as a VC, I’ve had the opportunity to meet with hundreds of entrepreneurs who are all building special companies.

Cloud 169

Cloud Software Benchmarks Retention 169

SaaStr

MAY 8, 2021

An annual contract gives you 365 days or so to fix that. I’ve long been a vocal proponent of annual contracts. And if your burn rate is low (ours was probably $100k-$150k at the time we started to close bigger annual deals), that’s like a whole extra month of runway just on that deal. Annual contracts require P.O.,

SaaS Payments 266

SaaS Payments Payment Services Scale Payments 266

SaaStr

SEPTEMBER 23, 2022

In this informative SaaStr Annual session, Bessemer Partners Sameer Dholakia, Mary D’Onofrio, and Elliott Robinson present the State of Cloud report, a look at the latest in SaaS trends, predictions, and cloud economics. You can see all the slides here. Prioritize customer retention and growth to accelerate revenue. .

Cloud 239

Cloud Trends Benchmarks Business Model 239

SaaStr

SEPTEMBER 19, 2021

If you want to hit the plan for Q1'22, You need to be hiring all the sales reps you'll need then … Now. Recurring revenue certainly has pros and cons. The biggest pro is it recurs With even 120% NRR, you basically double in 4+ years even with no new customers. Now that’s magic.

Sales Hiring 270

Sales Hiring Scale Headcount Acquisition 270

SaaStr

AUGUST 25, 2022

We wanted to give a special shout-out to some of our newest sponsors for SaaStr Annual 2022. At the 8th ever SaaStr Annual, ~200 of the best and hottest companies on earth will go BIG as partners/sponsors. Join these incredible companies to experience all the value of SaaStr! appeared first on SaaStr.

Cybersecurity 202

Cybersecurity Scale compliance Subscription 202

SaaStr

MAY 14, 2021

So it’s hard to dig even deeper inside yourself to get that last 10-15% of additional, much-harder-to-achieve revenue out of the ether. Because in recurring revenue, growing 10-15-20%+ more this year than even your stretch plan will pay huge dividends 3-4 years down the round. So I want to help. Don’t hesitate.

Sales Hiring 276

Sales Hiring Scale Engineering Customer Success 276

Stax

FEBRUARY 28, 2024

This includes subscription management, revenue recognition, dunning management, integrations with other business systems, fraud prevention, and more. This includes subscription management, revenue recognition, dunning management , integrations with other business systems, fraud prevention, and more.

Payments 88

Payments SaaS Payments Payment Services Merchant Services 88

User Pilot

MARCH 25, 2024

It uses revenue and operating costs to determine the company’s value. Revenue-based valuations are more suitable for SaaS startups because it doesn’t take into account upfront investment which affects SDE or EBITDA negatively. The multiple depends on numerous factors, like sustainability and transferability of revenue and growth.

SaaS 96

SaaS Customer Lifetime Value Acquisition Metrics 96

Clouded Judgement

APRIL 12, 2023

The 63 companies that I’ll discuss here (which is not an exhaustive list, but is still comprehensive) all reported quarterly earnings sometime between January 25th – March 30th. Over my years as a VC, I’ve had the opportunity to meet with hundreds of entrepreneurs who are all building special companies.

Cloud 161

Cloud Software Benchmarks Retention 161

SaaStr

JANUARY 15, 2021

25% of revenue from professional services may sound high, but it’s a fairly standard ratio in true enterprise software. And isn’t services revenue a friction-full waste of time anyway? I mean, it’s not recurring. You’re going to be doing some, a lot, or all of this for them. SAP-level clunky?

Revenue 308

Revenue Pricing Enterprise SaaS 308

User Pilot

FEBRUARY 28, 2024

There are various metrics to track the customer path, such as: Awareness stage metrics Acquisition stage metrics Activation stage metrics Adoption stage metrics Retention stage metrics Revenue stage metrics Referral stage metrics To create a successful customer path, follow the steps below: Conduct user path analysis to identify the happy path.

Customer Lifetime Value 95

Customer Lifetime Value SaaS Software Review Acquisition 95

Clouded Judgement

JUNE 20, 2023

The 63 companies that I’ll discuss here (which is not an exhaustive list, but is still comprehensive) all reported quarterly earnings sometime between April 2th – June 8th. Over my years as a VC, I’ve had the opportunity to meet with hundreds of entrepreneurs who are all building special companies.

Cloud 161

Cloud Software Benchmarks Scale 161

Kellblog

OCTOBER 13, 2022

Is it MRR (monthly recurring revenue)? If the bar’s in a club with a $2000 annual membership and a quarterly food and beverage (F&B) minimum of $221, I’d say yes. I’d probably even call it $2,884 of ARR, not MRR, to reflect the annual nature of the contract [3]. What Does Recur Mean?

Metrics 133

Metrics SaaS Payments SaaS Payment Features 133

Chart Mogul

JULY 2, 2021

When I hear ARR: (note ARR = "Annual Recurring Revenue") pic.twitter.com/etalzXy87g — Chetan Puttagunta (@chetanp) June 19, 2020. Annual Recurring Revenue — David Ulevitch ???? What is Annual Recurring Revenue? Hence, Annualized Run Rate (ARR) = MRR * 12.

Subscription 133

Subscription Payment Features Metrics Churn 133

User Pilot

OCTOBER 4, 2023

A simple yet effective answer to all your growth-related questions. Net monthly recurring revenue (MRR) growth enables you to calculate the change in your company’s recurring revenue on a month-to-month basis. As we will see in this article, there are several key factors that affect monthly revenue.

Metrics 93

Metrics Customer Lifetime Value Churn Retention 93

Clouded Judgement

DECEMBER 20, 2022

The 67 companies that I’ll discuss here (which is not an exhaustive list, but is still comprehensive) all reported quarterly earnings sometime between October 24th – December 12th. Over my years as a VC, I’ve had the opportunity to meet with hundreds of entrepreneurs who are all building special companies.

Cloud 130

Cloud Software Review Software Benchmarks 130

Tom Tunguz

FEBRUARY 2, 2020

It measures the value of a cohort of customers over time including expansion, cross-sell, and churn (loss of revenue). The second column is the revenue of this cohort in their first month. The last column is the ending revenue of that cohort. The last column is the ending revenue of that cohort. Starting Revenue.

Retention 198

Retention Benchmarks Revenue Churn 198

SaaStr

AUGUST 9, 2022

— Jason 2022 SaaStr Annual Sep 13-15 Lemkin (@jasonlk) August 6, 2022. And as more time goes by, they haven’t all worked out. The above billion+ exits, the CEOs were all quite different. But all were honest. But maybe I don’t really understand other things with recurring revenue nearly as well.

Investment 270

Investment Sales Recruiting CTO Startup 270

SaaStr

APRIL 22, 2022

What are the key product and organizational learnings from taking a company to $500 million in annual recurring revenue in just six years? . By being open to new product avenues, Sekar helped lead Samsara into new revenue streams. Run product feedback loops across all areas. Key takeaways.

Innovation 244

Innovation Wireless Scale Marketing 244

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: Prakash Raina. Top Takeaways.

Scale 204

Scale Finance Sales Hiring Scaling 204

SaaStr

JANUARY 12, 2021

The CEO basically is the VP of Sales and Revenue and Customer Success, with maybe a junior resource or two helping. or a bit beyond — absolutely all of these hires will be accretive if they’re great. 3m to fund Your First Great Revenue Team. Precious time scaling your recurring revenue business.

Sales Hiring 265

Sales Hiring Scale Marketing Sales 265

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. There’s been a pivot from growth at all costs to driving profitability. The past twelve months have been relatively turbulent for Cloud founders. Today, this ratio is closer to 2:1.

Cloud 250

Cloud Payments Software Review Payment Solutions 250

SaaStr

OCTOBER 18, 2019

A few seasons back, we wrote a post on hitting how in SaaS, you have to be putting the resources in place by Q3 to hit the plan for the next year. We update this post a bit annually as we head into next year’s planning procress. Recurring revenue certainly has pros and cons. The biggest pro is it recurs.

Sales Hiring 184

Sales Hiring Scale Headcount Revenue 184

SaaStr

JANUARY 6, 2021

Aaron Levie was kind enough to come to our first SaaStr Annual in 2015, just a week after their IPO. And when we wrote in 2014 that Box would surely cross $1B in ARR , many at the time didn’t quite get SaaS yet — or the power of recurring revenue. This is a common theme from almost all SaaS leaders at scale.

Scale 285

Scale compliance Enterprise Scaling 285

Subscription Flow

JANUARY 22, 2024

Business growth and revenue generation depend on how these accounting operations are performed. There are many software that can automate these accounting and finance operations for you, however, in this article, our focus is going to be QuickBooks recurring payments. How to Set Up Recurring Payments in QuickBooks?

Payment Features 59

Payment Features Payments Payment Services Payment Solutions 59

Tom Tunguz

JUNE 5, 2022

Thank you to all who participated and those who attended last week’s Office Hours to review them. 45% expect slower ARR growth this year and on average are reducing their ARR (annual recurring revenue plan) by 31%. Top 10 Insights from the 2022 Startup Sentiment Survey.

Startup 215

Startup Scale Headcount Compensation 215

Stax

FEBRUARY 20, 2024

As CTO of Clearent by Xplor, he helped grow its transaction processing from $2 billion to over $20 billion annually. I look forward to my journey at Stax, simplifying complex problems with great people as we delight our customers with solutions that deliver that fastest path to revenue with embedded payments.

CTO 88

CTO Stax Payments Merchant Services 88

Payrix

APRIL 24, 2024

We hear this from all of our partners. The subset of their software customer base that is utilizing an Embedded Payments solution has lower attrition rates on an annual basis than the subset of their software base that is not processing payments through their platform,” shares Andy. How do payments impact software attrition rates?

Payments 147

Payments Embedded Payments Merchant Services Payment Solutions 147