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Thanks to Cumul.io, Hook, Jiminny, Leaseweb,and Zendesk for Sponsoring SaaStr Europa 2023!

SaaStr

Hook accurately predicts revenue growth from your customers. We use data science to identify your highest-value customers, how to keep them and maximize revenue. Ready to start boosting revenue? Offer new insights to your users and let them take action immediately, right within your own application!

Scale 204
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Nassim Taleb, a 90s Mobile Game, and Why Payment Gateways Alone Don’t Offer Revenue Growth

Chargebee

In 2007, mathematical statistician and former Wall Street trader Nassim Nicholas Taleb argued that inflexibility, even in the most meticulously built systems, ultimately makes them fragile. Or, as my gym trainer says – the more you bulk, the harder dancing gets. ” The objective […]

Mobile 75
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5 Interesting Learnings from Zscaler at $1B in ARR

SaaStr

only half its revenue. Sales + Marketing declined from 59% of revenue to 47%. Zscaler is still a sales-driven model, and those struggle to get sales and marketing expenses below 50% of revenue, unless there is a PLG or freemium element. Their long term goal is to get Sales & Marketing to 33%-37% of revenue. #4.

Scale 228
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5 Interesting Learnings from UserTesting at $160,000,000 in ARR

SaaStr

While hardly the only vendor doing automated product insights, UserTesting has been doing it for quite a while (founded way back in 2007) and doing it well, with over 2,100 customers including many tech leaders. Only 18% of revenue outside the U.S, Pro Services about 8% of revenues. UserTesting has.

Scale 215
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The Power of Going Long in SaaS

SaaStr

Today, just 2 years after that, Hubspot in a very similar space (just more SMB) and with very similar revenue, is worth $18B. First product doesn’t work, no revenue for 3 years. in first angel round in 2007. And revenue has grown to $1B+ ARR for all the winners. That’s 18x. Shopify: Founded 2006.

SaaS 197
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Clouded Judgement 9.29.23 - Rates Keep Going Up

Clouded Judgement

The disconnect in rates and multiples is even more stark when we look at growth adjusted multiples (taking revenue multiples and dividing them by forward growth rates). Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 183
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Instacart

Andreessen Horowitz

Over time, Instacart planned to build out an advertising revenue stream with CPG companies, offering them effective performance marketing with a primed, high-intent audience. They had impressive GMV growth and strong cohort revenue retention, but their unit economics were upside-down.