SaaStr

JANUARY 24, 2022

Take a read if you are still running finance yourself, or just have an part-time outsourced resource. But it was on the margin — the ACVs were low, and the CAC was high. Was it misunderstanding bookings vs. ARR vs. GAAP revenue, was that the issue? — Jason, ed. They didn’t make any sense.

Finance 323

Finance Outsourcing Services Systems Review Technical Review 323

OpenView Labs

APRIL 7, 2021

It’s hard to conceive of what to do without metrics like CAC payback, LTV:CAC, average ACV, or the magic number. New ARR vs. cash burned: This is a simplified heuristic that’s meant to provide similar insight as ROIIC and can flag whether you need to dive deeper. More PLG resources. Leave a comment here.

Metrics 52

Metrics Scale SaaS Marketplace as a Service 52

Sales Hacker

APRIL 10, 2018

The SMB segment—going upstream vs. downstream. Whilst others require a dedicated approach such as Germany vs. Spain. Think of the differences of calling on a pro-user vs. an enterprise. When we map the number of deals committed against a listed price (ACV), you will notice deals starting to segment around discount levels.

SMB 72

SMB Strategy Outsourced Development Marketing 72

Chart Mogul

SEPTEMBER 10, 2018

Annualized run rate (ARR): Your MRR multiplied by 12 — a forecast of your annual revenue, based on MRR. To get a more actionable view of your revenue, you can break it down into its component parts — what we call MRR movements: When should you use ARR vs MRR? Resources and Further Reading. DOWNLOADABLES.

Metrics 68

Metrics Revenue SaaS Forecasting 68

FastSpring

APRIL 26, 2022

And in part three, we’ll conclude with a set of definitions you can use when talking about churn with others — and some additional resources. Part I: SaaS Churn Benchmarks Part II: 5 Proven Strategies for Reducing SaaS Churn Part III: Churn Definitions and Additional Resources. The smaller the ACV, the easier it is to churn.

Benchmarks 123

Benchmarks Churn Payments SaaS Payments 123

OpenView Labs

MARCH 30, 2020

Before you know it, you can easily be submersed in wave upon wave of metrics and corresponding acronyms—customer acquisition cost (CAC), annual recurring revenue (ARR), annual contract value (ACV) and lifetime value (LTV), just to name a few. ARR, and the annual growth of it, is another classic. Annual Growth Rate.

Benchmarks 54

Benchmarks Technical Review Churn Scale 54

SaaStr

FEBRUARY 6, 2024

” What’s ‘good vs. bad’ NRR? One way people answer this question is as a percentage of ARR as shown in Nick’s chart above. On the low end, is typically to see companies under $25K ACV have a couple of hundred accounts per person, typically quite automated. What’s Good Net Revenue Retention?

Customer Success 249

Customer Success Scale Sales Hiring Benchmarks 249

SaaStr

FEBRUARY 11, 2021

It used to really bug me because I am a firm believer in the strategy of Zero Voluntary Attrition and trying to hire fewer, more committed resources over a higher volume of mercenaries that turn over more often. Where should we spend our resources, our money? Let’s say you hire your VP, Sales when you are at $1m in ARR.

Sales Hiring 363

Sales Hiring Scale Sales Recruiting Sales 363

Sales Hacker

FEBRUARY 2, 2024

One thing we’ve learned in helping our founders and operators scale their businesses is that cash is one of their most precious resources. Driving self-serve ARR (PLG). Marketing should be accountable for signups, trial starts, seats, monetized seats, and self-serve ARR. ➝ Read about their ARR milestone. Seed funding.

Metrics 91

Metrics Revenue Scale Marketing 91

Sales Hacker

MAY 9, 2019

Decide Base Pay vs. Variable Pay (Commissions). Step 4: Decide Base Pay vs. Variable (Commissions). If you have 4 salespeople, = $1M ARR/salesperson. You then divide by the ACV per deal ($25k) = 40 deals won per year, or a little over 3 deals per month. Bookings vs. Cash collections. Establish Role Levels.

Compensation 102

Compensation Sales Hiring Development Team Review Sales Recruiting 102

OpenView Labs

SEPTEMBER 24, 2020

Most SaaS companies don’t hire a dedicated pricing strategist until they reach $50M ARR. Related read: The Ultimate SaaS Pricing Resources Guide. And as part of over-communicating, Kevin said to “consider a dashboard with your pricing KPIs (actual vs. target, trends) just like demand/growth funnel, sales and CX dashboards.”

Pricing 91

Pricing Scale Sales Hiring Systems Review 91

Chart Mogul

SEPTEMBER 15, 2023

Source From $10M to $100M+ ARR: Five CFO Learnings by Mark Khavkin, Pantheon I joined Pantheon, the leading SaaS website operations (WebOps) platform, in early 2017 as the company demonstrated its product-market fit (PMF). ARR business (40% revenue CAGR since IPO) with a $21.5B A $2000 ACV?

Scale 52

Scale Underperforming Technical Team Sales Hiring SaaS 52

SaaStr

AUGUST 28, 2020

When thinking about sales ops vs revenue ops, what are the 4 key points to consider for founders? How does lead management and onboarding alter the question of sales ops vs revenue ops? As a business scales does there not come a time where it unbundles and scales out of sales vs revenue ops? Where do the breakpoints occur? *

Scale 160

Scale Sales Hiring Sales Technical Advisors 160

Sales Hacker

FEBRUARY 7, 2018

Traditional Sales Growth vs SaaS Sales Growth. Growth rate depicted from traditional B2B sales teams vs. SaaS Sales teams. One of the key shortcuts is to use automated forms of outbound to identify leads that want to have a meeting and use low-cost sales resources to run those meetings in an effort to close.

Scale 86

Scale Growth Hacking Scaling Sales Hiring 86

SaaStr

NOVEMBER 21, 2020

How does Rob think about the bundled vs unbundled thesis within SaaS? How does Rob think about usage vs seat-based pricing in SaaS? You look at the forward-looking ARR multiples on the stock price, and they were a lot lower back then. When is it right for SaaS companies to turn down potential customers?

SaaS Payments 263

SaaS Payments Scale Payment Services Payment Solutions 263

Sales Hacker

APRIL 21, 2022

This was all in an effort to increase our average contract value (ACV). After years of hard work, we were able to significantly increase our ACV (5x+). Companies need to structure their pricing and packages in a way that appeals to enterprise buyers and drives up ACV. Patience vs. Urgency. Pricing and Packaging.

Marketing 85

Marketing Sales Hiring SaaS SMB 85

SaaStr

MARCH 1, 2024

TJ Nahigian, co-founder and Managing Partner of Base10 Partners, and Luci Fonseca, Partner, deep dive into the current GenAI landscape, incumbents vs. startups, and the six questions founders should ask themselves to drive value from GenAI. But business stalled out at around $10M ARR. ARPU, ACV, and LTV are increasing.

Generative AI 248

Generative AI Outsourcing Services AI Software Review 248