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Even With Just “Pretty Good Growth”, You Can Build a Unicorn After $10m ARR

SaaStr

Today, the very best SaaS companies are scaling faster than ever. Mailchimp in 2001. These numbers are obviously at scale. One of the very firm SaaStr-isms what that while $0-$1m ARR is Impossible, and getting from $1m-$10m ARR is Unlikely … that getting from $10m to $100m ARR is Inevitable. UiPath did it.

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5 Interesting Learnings From Five9 at $550,000,000 in ARR

SaaStr

It’s old, founded in 2001. And in many cases, pre-Covid, they’d been working on decades-old server-based phone systems. Pre-Cloud systems, really. So Five9, Talkdesk, RingCentral, Dialpad and more boomed during Covid. Five9 is particularly interesting. It wasn’t a rocketship.

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Going Long: The 20-year Journey of Being a CEO + Founder with BlackLine

SaaStr

However, as the company has scaled, and that exceedingly high level of customer service was no longer sustainable, she hired someone who had a skill set that is completely different from hers, and who could actually scale the high level of customer service that customers came to expect. The Importance of Having Reliable Mentors.

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The Power of Going Long in SaaS

SaaStr

Blackline : Founded 2001, boostrapped. Today, just 2 years after that, Hubspot in a very similar space (just more SMB) and with very similar revenue, is worth $18B. That’s 18x. Shopify: Founded 2006. Original CEO steps down, Tobi has to take over. 2015 IPO at $1.27B. Today, $128B market cap. 100x from IPO. Unable to raise any money.

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From 0 to $500 Million ARR in 6 years: Learnings from Innovating in Underserved Markets with Samsara CPO Kiren Sekar (Pod 549 + Video)

SaaStr

By 2001, when laptops started to surf the web, about 1 million devices existed. These learnings offer practical, high-level advice for scaling a company while achieving both product and revenue growth. . Before starting Samsara, Sekar worked with the same founding team at Meraki, which focused on wireless device connectivity.

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What Percentage of Revenue Should SaaS Startups Spend on Payroll?

Tom Tunguz

In 2001, Salesforce spent $35.6M as both of these companies scaled and approached IPO, the operating expense ratio (OER) or operating expense divided by revenue, asymptotes to 0.8. in payroll at scale. in payroll at scale. If the greater the OER, the greater the reliance of the business on employees to scale revenue.

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A SaaS History Lesson – The First SaaS Company's Exceptional Journey

Tom Tunguz

But soon after the crash of 2001, the startup’s market cap totaled only $8M. Then Concur quickly grew to about $41M over the next five years, before the transition to selling SaaS in 2001. In the Cloud Era, the economies of scale powered the company to achieve all time gross margin highs in 2010 of about 72%.

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