SaaStr

FEBRUARY 9, 2024

Given this, you must understand the role that each facet of the business plays in promoting that product, from marketing and sales to customer service. Some say sales if you don’t have a product that lends itself to being self-service. Everything from hiring on the GTM side to layering in a sales-led motion into PLG.

Scale 251

Scale Sales Hiring Sales Marketing 251

Payrix

APRIL 24, 2024

Check out the Payrix podcast library (or click the links below) to listen to Ian and Andy explore resourcing considerations, payments attachment and merchant activation, and the impact of payments value-added services, and how each layer into an overarching Embedded Payments strategy. Did you miss Parts 1-3?

Payments 147

Payments Embedded Payments Merchant Services Payment Solutions 147

Tom Tunguz

FEBRUARY 20, 2024

In addition, AI is enabling them to reduce their service costs by 50%, which is similar to the productivity gains ServiceNow reported. By the end of Q2, we roughly halved the cost of our T&E servicing. By the end of Q2, we roughly halved the cost of our T&E servicing. Since then, Palo Alto has acquired 16 companies.

AI 205

AI Outsourced Development Cybersecurity Customer Lifetime Value 205

Payrix

MARCH 20, 2024

However, the level of control also comes with an added level of risk and responsibility in terms of financial and compliance liabilities. For software companies with the resources to manage selling, marketing, servicing, risk and compliance, the effort can be very rewarding.

Payments 147

Payments Embedded Payments Payment Services Payment Solutions 147

SaaStr

APRIL 9, 2024

Population growth Productivity growth Debt growth We know that we won’t see population growth until the medium-to-long term. With long-term success comes some approach towards governance, which includes data and AI governance. With debt growth, at least for the foreseeable future, that’s not a real catalyst. Lastly, you need use cases.

AI 215

AI Outsourcing Services Outsourced Development Government 215

Tom Tunguz

APRIL 25, 2024

“Currently, near-term AI demand is a bit higher than our available capacity…In Azure, we expect Q4 revenue growth to be 30% to 31% in constant currency” Even more impressive, if illusive to measure, is the cross-selling ability of AI across Microsoft customers. “We now have 1.8 of revenue in a year. 815% Total $4.5b

Azure 124

Azure AI Search Marketing AI 124

USIO

APRIL 22, 2024

This revenue-sharing model not only promotes fairness but also encourages innovation and long-term sustainability within the Usio Partner network. This distinction not only enhances reliability and performance but also eliminates the common practice of passing blame to other companies in the event of technical issues or service disruptions.

Payment Services 130

Payment Services SaaS Payments Payment Solutions Payments 130

Blulogix

MARCH 22, 2024

By BluLogix Team Mastering the Art of Complex B2B Recurring and Subscription Billing: Strategizing Customer Penetration for Enhanced Growth For B2B subscriptions, customer retention is a pivotal factor underpinning the long-term success and sustainability of businesses. Pathways to Maximize Service Penetration: 1.

B2B 96

B2B Subscription Payment Features Consulting 96

Clouded Judgement

DECEMBER 22, 2023

Subscribe now Revisiting the “Is Software Expensive” Question The current median revenue multiple for the software universe is 6.4x, which is ~17% below the long term average multiple of 7.8x. During the period where the long term average multiple was 7.8x, the median projected growth rate was 27%. Top 5 Median: 16.1x

Cloud 177

Cloud Subscription Payment Features Metrics 177

SaaStr

MARCH 1, 2022

Q: Dear SaaStr: Can We Add Termination Charges for SaaS services? The thing is, unless (i) you are in slow growth mode, (ii) don’t care about NPS/customer happiness, and (iii) are not focused on long-term renewals … it’s not worth it: Your NPS/CSAT will plummet to Less Than Zero if you do this a lot. Some older companies do this.

SaaS 253

SaaS Churn Revenue Pricing 253

SaaStr

MARCH 27, 2023

Very few or no services at all. Services generally have a lower gross margin. So if you bundle both SaaS and services, you’re actually hurting the gross margin profile of the company. So if they actually offer services, these come at a huge premium. This is important for two reasons. How do they achieve this?

SaaS Payments 197

SaaS Payments Technical Review Software Review Venture Capital 197

User Pilot

APRIL 24, 2024

TL;DR SaaS renewals includes the process of renewing a subscription to an online-hosted software service. Effective renewal strategies enhance customer retention , drive revenue , and build a loyal base for long-term SaaS success. SaaS renewals refer to the process of a subscription renewal to a software service that is hosted online.

SaaS Payments 78

SaaS Payments Retention Payment Services Payment Solutions 78

SaaStr

JUNE 17, 2023

By doing so, they’ve maintained steady revenue streams while also enhancing product offerings and customer service capabilities. Reinvesting profits back into your business can lead to improved services or products which will attract more customers thus generating more revenue in return.”

Venture Capital 205

Venture Capital Scale Technical Review Software Review 205

SaaStr

MARCH 30, 2023

PSG is a growth equity firm that partners with software and technology-enabled service companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. The platform also has an extensive database that covers over 16,000 different SaaS tools and supports the services side of the business.

Outsourced Development 197

Outsourced Development Acquisition Pricing B2B 197

Stax

MARCH 14, 2024

Business to business or B2B, is a term that specifies with whom business is conducted. Business to business organizations provide services or goods to other companies, unlike business to consumer (B2C), which is when businesses transact with consumers (individuals). Online and contactless adoption multiplied, and digital payments rose.

Payment Services 88

Payment Services Merchant Services Payment Methods Payments 88

Subscription Flow

APRIL 23, 2024

A robust recurring billing software can make all the difference for your subscription business but win 2024 we are taking no gambles. Invest in the right billing and subscription-management software to automate your workflows after carefully assessing three of the best options in the market. Doing this ensures the data-driven reduction of churn.

Payment Solutions 93

Payment Solutions Payments Payment Services SaaS Payments 93

Tom Tunguz

OCTOBER 10, 2021

These aren’t universal numbers because the “standard” terms are still coalescing in the market. Also, if the crypto company sells software/services to other crypto companies and receives payment in tokens, the token revenue generated from that relationship resides in the treasury. Most deals are bespoke.

Payment Solutions 317

Payment Solutions Payments Payment Services Investment 317

SaaStr

MARCH 13, 2024

If so, you will be wrestling with something open-source while making a plan of action to make it long-term. Are you re-vampimg your entire product roadmap, or sprinkling AI in along the way? Keeping up with the Speed of Generative AI At Legal OS, they’re building an AI-powered legal assistant for revenue-driving functions.

Generative AI 202

Generative AI AI Cloud Startup 202

Clouded Judgement

APRIL 12, 2024

This tells me the market is expecting one of two things - a true re-acceleration in top line that will show up in the short term, or inflation to reverse course and start falling again in the short term. Even a DCF is riddled with long term assumptions. Subscribe now March Inflation (CPI) Update CPI: March CPI YoY was +3.5%

Cloud 141

Cloud Subscription Payment Features Revenue 141

SaaStr

JULY 20, 2022

Today, it crosses dentistry, optometry, veterinary, physical therapy, specialty medical services, audiology, plumbing, electrical, HVAC and other home services. 56% Gross Margins overall, Negative on Hardware and Services. Stripe deal has a 3 year term. But I thought I’d take a deeper look at one example, Weave.

SaaS Payments 230

SaaS Payments Scale Payment Methods Payments 230

Tom Tunguz

FEBRUARY 2, 2023

One surprising nuance from the Google call: Revenue growth in GCP was again greater than Google Cloud, reflecting strength in both infrastructure and platform services. Long-term the growth potential remains. So far in the first month of the year, AWS year-over-year revenue growth is in the mid-teens. Amazon: Net sales increased $21.4

GCP(Google Cloud Platform) 305

GCP(Google Cloud Platform) Cloud AWS Sales Hiring 305

SaaStr

APRIL 3, 2023

So the other night as the quarter was ending, a leading SaaS company sent us 4 threatening emails in the span of less than two hours to upgrade to annual and pay for 46 seats for a 48-month term or they will shut off our service. The thing is — we have 9 folks on the team. And aren’t even using half the seats we pay for.

Sales 173

Sales Pricing Churn SaaS 173

Clouded Judgement

MARCH 29, 2024

Even a DCF is riddled with long term assumptions. .” The below chart shows the percentage of companies beating / missing consensus estimates (with the line chart showing the median beat). As you can see, we’re still at slightly depressed values for both. One positive has been the aggregate net new ARR growth in the quarter.

Cloud 278

Cloud Forecasting Subscription Payment Features 278

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. Almost everyone — 98% of consumers —has a streaming service subscription. 98% of consumers have a streaming service subscription.

Merchant Services 88

Merchant Services Payment Services Payment Methods Payment Features 88

Tom Tunguz

JANUARY 17, 2021

I analyzed Crunchbase data and looked for the startup categories that grew fastest in terms of funding rounds year-over-year, provided there were at least 10 rounds in that category. Developer APIs includes a litany of different developer tools and services. Quantum computing topped the list with a doubling of rounds.

Startup 362

Startup Software Engineering Finance Engineering 362

Clouded Judgement

OCTOBER 13, 2023

So while it’s good to see broth expectations pick up for 2024, the current expectations would still be below the long term annual growth average. In the short term, however, there does seem to still be pressure on budgets. So long term there’s lots of optimism for budget growth, and short term people are still cautious.

Cloud 169

Cloud Artificial Intelligence Subscription Payment Features 169

Clouded Judgement

SEPTEMBER 1, 2023

” Every week I post a number of charts and tables, but the most popular chart shows the software universe’s median revenue multiple, the long term average, and the 10Y (below). ” After all, the current median software multiple is ~6x, while the long term average is 7.8x. The long term average for that cohort is 9.3x.

Software Review 183

Software Review Cloud Software Revenue 183

Tom Tunguz

NOVEMBER 6, 2021

The contracts are identical twelve month contracts except for the payment terms. Contract B relaxes payment terms to monthly payment, 12 monthly installments for the next year. Imagine an AE closes two contracts for $100k ARR. Contract A requires annual prepayment - all the cash will be paid tomorrow. Contract A pays for itself today.

Sales Hiring 343

Sales Hiring Scale Payments Payment Solutions 343

SaaStr

SEPTEMBER 1, 2022

We help teams deliver fast and empathetic customer service, right from the tool they are already familiar with – Gmail. We help teams deliver fast and empathetic customer service, right from the tool they are already familiar with – Gmail. Schellman is a leading provider of attestation and compliance services.

compliance 222

compliance Forecasting AI Onboarding 222

Totango

APRIL 9, 2024

This signifies that fostering an exceptional partnership between CS and sales teams — vital for long-term revenue growth, begins with understanding which customers can derive the highest value from your products and services over time. Is 2024 the year of customer success or sales?

Scale 106

Scale Sales Compensation Customer Success 106

SaaStr

JANUARY 30, 2021

Only 5% of its revenues from professional services. The number is in some ways artificially low, in that like Salesforce, ServiceNow has built up a large ecosystem of partners to handle deployments, configuration, and other lower-margin professional services. It’s interesting to see contract terms presented this way.

Enterprise 342

Enterprise Revenue Scaling Retention 342

SaaStr

JULY 8, 2023

Cash acquisitions can almost be free in the short and medium term for cash-rich big companies. Companies that are even just marginally profitable often at least generate enough cash to comfortably service this debt. Each acquirer is very different here, in terms of where they are on the profitability scale.

Startup 172

Startup Scale Acquisition Retention 172

SaaStr

MAY 25, 2022

Expensify CEO David Barrett talks about what it takes for businesses to thrive, spotlighting the need to move from a traditional economic model to Conan Economics, a term inspired by Conan the Barbarian. Nobody wants to refer a service that may not be able to deliver. Nobody wants to refer a service that may not be able to deliver.

Scale 239

Scale Marketplace as a Service Business Model Advertising 239

SaaStr

JANUARY 31, 2023

The stickier and more convenient your product is to use along with the ecosystem, the more likely you will be to set up long-term retention. Seeding long-term competitive moats and future areas of focus. SaaStr Workshop Wednesdays are LIVE every Wednesday. Sign up for free. How it Works: So how do strategic funds work?

Investment 199

Investment Startup Branding Acquisition 199

Tom Tunguz

MAY 4, 2022

The term sheets signed in November and December closed in Q1, which may buoy these figures. Web3 is a term that will disappear like web2 and mobile investing before it. It encapsulates software, infrastructure, and consumer services- unlike the other buckets which are more narrow. Startup valuations. Seed has become the new A.

Data 245

Data Healthcare Marketing Construction 245

Stax

FEBRUARY 28, 2024

What hinders the 90% is the high costs of delivering better products and experiences that warrant long-term customer loyalty. Software-as-a-service (SaaS) businesses need to constantly evolve their offerings to stay fresh and relevant. However, only 10% of them currently employ these models.

Payments 88

Payments SaaS Payments Payment Services Merchant Services 88