Tom Tunguz

JUNE 28, 2017

One typical Friday morning in 2004, I walked into a government building and headed to work. When the technology limits growth and revenue. Refactoring is like any other product and engineering initiative: it must be prioritized relative to the future revenue contribution to the business. That’s my heuristic.

Startup 163

Startup Government Innovation Engineering 163

Tom Tunguz

APRIL 24, 2017

Founded in 2004, Fleetmatics employs about 1150 employees. Based in Massachussetts, the company generated $320M in revenue in 2016. Geotab is a bootstrapped Canadian company that employs 300 employees and generated $110M in 2016 revenue. An unusual SaaS company, Fleetmatics generated profits: 6.5

Sales Hiring 186

Sales Hiring Strategy Venture Capital Marketing 186

Tom Tunguz

MAY 13, 2015

In its first year of selling, the company generated $800,000 in revenue. At this point in time, Ariba generated 56% of its revenue from professional services, which dramatically depressed because margins. in sales and marketing efforts in the years before generating more than $200 million in revenue. Then it ramped. $8

Outsourced Development 108

Outsourced Development Software Review Technical Review compliance 108

Tom Tunguz

OCTOBER 21, 2013

Below is a chart of the ratio between enterprise value to revenue for two segments of SaaS companies. From about 2004 to 2011, the average publicly traded SaaS company held an EV/Rev multiple of 3 to 5x. Twelve months ago, I saw most SaaS startups raising in the 5 to 10x this year’s revenue range.

SaaS 100

SaaS Trends Startup Revenue 100

SaaStr

MAY 1, 2020

Are you a revenue driver or a cost center? Marketing leaders must focus their teams on the areas that will drive revenue while they cut costs – the biggest impact for the business. In my early twenties I founded three companies between 1995 to 2004 which all had successful exits, including an acquisition by Microsoft and an IPO.

B2C 173

B2C Investment B2B Pricing 173

Tom Tunguz

JANUARY 18, 2015

82% of the companies to achieve $50M in revenue in under 8 years have been founded in the last decade. Meanwhile, all of the companies requiring longer than 8 years were founded before 2004. This chart plots the median revenue of the basket of publicly traded companies by founding date. Newer SaaS companies grow faster.

SaaS 108

SaaS Engineering Trends Enterprise 108

Tom Tunguz

JULY 28, 2016

The second largest, Jasper, is an internet of things software company founded in 2004, which Cisco acquired for $1.2B. In 2015, our internal analysis showed private SaaS companies commanded twice the valuation-to-multiple revenue of the public markets. It’s the 7th largest this year. Jasper ranks eleventh.

Payment Solutions 100

Payment Solutions Payments SaaS Acquisition 100

Tom Tunguz

JUNE 8, 2015

The business was founded in 2004, but hit its stride 2009 and went public in 2012. ServiceNow grew from$19M in revenue to $178M in 4 years, sustaining a 75% CAGR during that period. At IPO, ServiceNow recorded a $95,000 average revenue per customer, placing in the top third of SaaS companies in terms of average revenue per customer.

Benchmarks 108

Benchmarks Metrics SaaS Investment 108

Tom Tunguz

DECEMBER 7, 2015

Today, more than 82% of revenues are subscription dollars. At roughly 2800 customers as of November 2015 and $583M in trailing twelve months’ revenue, Ultimate Software generates about $210k in average revenue per customer, which implies reveune skews toward the enterprise part of the market.

Software 100

Software Marketing Forecasting Enterprise 100

Kellblog

JULY 25, 2020

Here’s the first one, which shows the progression of the EV/NTM revenue multiple [2] for a set of 50+ high-growth SaaS companies over the past 15 or so years [3]. While the green line (equity-value-weighted [4]) is most dramatic, the one I gravitate to is the blue line: the median EV/NTM revenue multiple. See here for more. [5]

Technical Review 96

Technical Review Software Review Pricing Metrics 96

Sales Hacker

APRIL 16, 2018

On this episode of the Sales Hacker podcast, we talk with Jess Hun t , Head of Global Marketing, Sales & Strategy for Axiom about creating a revenue model. Why your CFO shouldn’t own the revenue model. Real world advice on how to successfully grow your company’s revenue. What You’ll Learn. Now on with the show. About Axiom.

VP of Engineering 67

VP of Engineering Revenue Scale Sales Recruiting 67

Tom Tunguz

NOVEMBER 26, 2012

For many of these startups, revenue hasn’t been able to keep pace with rising serving costs. In 2004, for every 1 consumer investment, VCs invested in 10 enterprise companies. Since the bottom in 2003-2004, consumer deals have increased their share of venture dollars growing by 250% to about 25%. Today that ratio is 1:3.

Trends 100

Trends Investment Healthcare Enterprise 100

ChurnZero

JUNE 2, 2021

Q: How do you calculate net revenue retention for a usage-based model? I still think that net revenue retention works really well. If you say that 100 customers in November gave us this much money, and in December they gave us that much money, it feels like net revenue retention. They amortize the revenue 1/12 th every month.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

Chargify

AUGUST 6, 2019

Brian Halligan and Dharmesh Shash met in 2004 when they were both graduate students at MIT. Today, HubSpot is not only a rapidly-growing enterprise that generates nine-figure annual revenue (more than $500 million in 2018), but they are also trusted thought leaders in the marketing industry with a cult-like following. 2007:$255,000.

Subscription 40

Subscription Payment Features Revenue Software Review 40

Andreessen Horowitz

DECEMBER 13, 2023

Unity, founded in 2004, took nearly 5 years of bootstrapping to launch the engine, cultivate a cult following of Mac hobbyist developers, raise venture funding and ascend the curve of relevancy such that studios with real budgets were willing to bet their projects on Unity. This would be as if Epic licensed its entire tech platform (i.e.

Engineering 145

Engineering Payments Technical Review AI 145

SaaStock

FEBRUARY 14, 2019

Aaron Ross, Co-CEO, Predictable Revenue. Today he is the man behind Predictable Revenue, the “Outbound Success Company.” The company’s best-selling book, Predictable Revenue , details the hugely successful outbound process and sales created specifically for Salesforce. Talk: SaaS Crystal Ball: Revenue Performance Metrics.

Technical Review 207

Technical Review Scale Entrepreneurship Sales Hiring 207

SaaStr

APRIL 16, 2023

Fast forward to today, and Slack is coming up on $2 Billion in ARR , with the majority of its revenue being bigger enterprise deals … with a sales driven motion. It’s about scale and revenue. We started development in early 2004. From PLG innovator at $30m ARR t o a top SLG+PLG leader at $1B in ARR.

Scale 330

Scale Sales Hiring PayPal Development Team Review 330

Tom Tunguz

AUGUST 20, 2014

Google had grown from $220k in revenue in 19aw99, to $19M in 2000, to $86M in 2001, to $347M in 2002, to $961M in 2003, and would record $3.2B in 2004, the year of their IPO. But that feeling was more than just a product of the rocket ship growth of the ads business. Digging past the business revealed a wonderful culture.

Education 100

Education Trends Startup Technology 100

SaaStock

MARCH 20, 2019

ProfitWell provides industry standard subscription financial metrics that uncover pockets of hidden revenue through unmatched subscription intelligence. By the end of 2018, Shopify managed to bank over $1 Billion in revenue, reaching quite the milestone and rightfully earning the crown of top SaaS company. Founded: 2004.

SaaS Payments 271

SaaS Payments Merchant Services Payment Solutions Payments 271

Upscope

AUGUST 16, 2021

With over 2 million active podcasts in 2021, and US podcast ad revenue to surpass $2 billion in 2023, the podcasting scene has been on a steady rise since it began gaining traction back in 2004. Once known by the term ‘audioblogging’ , the world of podcasting has come a long way since its inception in the late 1980’s.

Interviewing 52

Interviewing Branding Business Model Engineering 52

Tom Tunguz

JULY 6, 2014

Founded in 2004, GoPro is about 10 years old and during the past few years has witnessed spectacular growth. In its sixth year in business, the company generated $65M in revenue and in its ninth year, just short of $1B. The revenue figures and the annual growth rates of the business are depicted in the chart above.

Startup 122

Startup Sales Hiring Benchmarks Advertising 122

Tom Tunguz

AUGUST 26, 2014

We will explore revenue growth, average revenue per customer, sales efficiency, payback periods, net income, gross margin and engineering spending. HubSpot has achieved amazing revenue growth in their first 7 years as a company growing by more than 12x from $5.7M in 2009 revenue to 2013 revenue of $71M - an 88% CAGR.

Benchmarks 108

Benchmarks SMB Metrics SaaS 108

OPEXEngine

NOVEMBER 22, 2022

Online accounting software provider Xero, for example, was founded in 2006 and now trades publicly at a 22x Enterprise Value to TTM Revenue multiple. Contrast this success with that of Intuit, which launched the desktop app QuickBooks in 1998 and its online version in 2004 (before Xero launched).

Business Model 52

Business Model SaaS Business Scale 52

Upscope

AUGUST 16, 2021

With over 2 million active podcasts in 2021, and US podcast ad revenue to surpass $2 billion in 2023, the podcasting scene has been on a steady rise since it began gaining traction back in 2004.

Interviewing 52

Interviewing Branding Business Model Engineering 52

Upscope

AUGUST 4, 2021

First coined by the Information Technology Services Marketing Association (ITSMA, what a mouthful) in 2004, Account Based Marketing (ABM) has become a critically important tool used by B2B companies worldwide. Founded in 2003, and with an annual revenue upwards of $1.5 With revenues of $8.2

Marketing 52

Marketing Cloud B2B Engagement 52

Upscope

AUGUST 4, 2021

First coined by the Information Technology Services Marketing Association (ITSMA, what a mouthful) in 2004, Account Based Marketing (ABM) has become a critically important tool used by B2B companies worldwide. Founded in 2003, and with an annual revenue upwards of $1.5 With revenues of $8.2

Marketing 52

Marketing Cloud B2B Engagement 52

Neil Patel

MARCH 10, 2021

With this creative ad, HP saw a 26 percent increase in revenue from the previous 12-week average. One ad that managed to do this perfectly was a 2004 Pepsi ad. Over the past few years, we’ve seen some incredible marketing happen with the marriage of music and marketing. Why do music and paid campaigns work so well together?

Marketing 138

Marketing Entertainment Advertising Branding 138

OPEXEngine

JUNE 2, 2021

Cherwell was founded in 2004 as an IT process improvement software company and later expanded into other process areas within companies, including HR, facilities, and finance. . “They see the value of the product and so we focused on that much more heavily, which offset some of the softness of selling licenses to new customers.”

Metrics 52

Metrics Pricing Airlines Sales Hiring 52

Neil Patel

JANUARY 25, 2021

Local search visibility helps drive traffic, customers, and revenue. Businesses with high Yelp ratings and lots of reviews grow their revenue faster. Google Trends allows you to search trends in search terms in real-time or during a specific time frame, as far back as 2004 and as recent as 36 hours before your search.

Business 132

Business Technical Review Trends Compensation 132

Kellblog

JANUARY 3, 2022

During my six years there we grew the company from $0 to $80M in revenues, so I have trouble labeling that box — as I initially did — “failure” [7]. Third place was for our acquiror, ASK, to get acquired by CA for less than 1x revenues. Box 1: Bad Idea, Good Execution. Was our execution bad?

Sales Hiring 127

Sales Hiring Scale Consulting Leadership 127

ProfitWell

NOVEMBER 22, 2019

Your pricing page is where you convert leads into revenue. Mailchimp has $0 in outside investment, 700 employees, 12 million subscribers, and $400 million in revenue. It was founded in 2004 and has $580 million in revenue. Its pricing matrix is structured as straightforward monthly recurring revenue, or MRR.

Pricing 56

Pricing B2C Acquisition compliance 56

Casey Accidental

NOVEMBER 28, 2023

The revenue from this will help drive more investment in the consumer product side of Eventbrite, which hopefully drives more consumers looking to Eventbrite to find things to do and buying more tickets from our creators. billion exit, Grubhub made a lot of mistakes.

Payments 62

Payments Scale Payment Methods Underperforming Technical Team 62

Practical Advice on SaaS marketing

MARCH 26, 2010

Though "the Rouge" continued to operate as an assembly plant until 2004 when one last convertible Mustang GT rolled off the line in May of that year, Ford had decades earlier moved to a more decentralized manufacturing process. Most SaaS ISVs already spend nearly 50% of their revenues on customer acquisition.

Cloud 100

Cloud Marketing Software Review Application Development 100

Outseta

OCTOBER 12, 2020

We knew this going in and openly talked about how it would take years for us to truly be able to deliver on our value proposition and start to grow revenue in a meaningful way. Dimitris Co-founded Buildium back in 2004. “It It took us two years to deliver a sellable product, and four years in now we’re just starting to scale.

Venture Capital 144

Venture Capital Entrepreneurship Scaling SaaS 144

SaaStock

MARCH 20, 2019

ProfitWell provides industry standard subscription financial metrics that uncover pockets of hidden revenue through unmatched subscription intelligence. By the end of 2018, Shopify managed to bank over $1 Billion in revenue, reaching quite the milestone there. Founded: 2004. Founded: 2008. Based in: Boston, MA. ProfitWell.

SaaS Payments 100

SaaS Payments Merchant Services Payment Solutions Payments 100

OpenView Labs

JUNE 24, 2019

In 2004, Logikcull was a highly profitable services company that streamlined legal discovery by processing and packaging data from customer hard drives. Like many SaaS companies, we fell in love with its alluring and compounding predictable revenue. If We Didn’t Pivot from Service to SaaS, Someone Else Would.

Pricing 43

Pricing Subscription Payment Features Healthcare 43

How To Buy Saas

JANUARY 24, 2021

Gmail – We have been using Gmail since 2004. Public cloud revenue is forecast to grow 6.3% SAAS is considered to be the best business model because of its recurring revenue growth. With just web browsers, our purpose are solved. Netflix – Used by us for movies and web series. Final Thought On SAAS.

Software Review 52

Software Review Software Technical Review SaaS 52