Clouded Judgement

DECEMBER 22, 2023

The median projected growth rate today is 14% The piece left out of the analysis is interest rates, which are obviously higher today than the period of 2010 to 2020. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Cloud 177

Cloud Subscription Payment Features Metrics 177

Tom Tunguz

APRIL 1, 2019

In the analysis, I created a metric, the return on invested capital (ROIC). In 2010, one venture dollar bought $1.24 If we look at the ROIC across IPOs across the last 12 years or so, we see that same initial dynamic of incredibly efficient companies in the 2010 and 2014 IPO cohorts. of revenue at IPO.

Startup 267

Startup Software Review SaaS Acquisition 267

Clouded Judgement

NOVEMBER 3, 2023

This growth adjusted premium also comes at a time when the 10Y is nearly double what it was from 2010 to 2020. So if you’re not valued like a growth stock you get valued more like a value stock - and the valuation metrics there look more like FCF or PE multiples. So what’s holding up software stocks valuations??

Software Review 161

Software Review Cloud Software Azure 161

Tom Tunguz

JANUARY 7, 2020

Since 2010, the number of round by quarter has followed a periodic growth, with consistent seasonality. Mean round sizes have increased from 5 million in 2010 to 17.5 I wondered if Softbank's changes in investment strategy had much to do with it, but as the chart shows, they were not a meaningful contributor. So, when does it change?

Marketing 225

Marketing Finance Investment Trends 225

Clouded Judgement

JUNE 16, 2023

Said another way, the median NTM revenue multiple is ~23% below it’s historical average, but forward growth expectations are the lowest ever (~40% below historical average), and the 10Y is ~40% higher than it’s historical average (from the period 2010-2020). Median NTM Growth Rate was ~25% Median 10Y was ~2.3%

Cloud 130

Cloud Software Revenue Subscription 130

Clouded Judgement

OCTOBER 21, 2022

And to get ahead of some questions, the long term average I’m using is from 2010-2020 (so excluding the crazy multiples of Covid). The average 10Y in the period of 2010 - 2020 was ~2.3%. I don’t think it goes back to ZIRP, but I think it looks closer to the average from 2010 - 2020 than what it does today.

Cloud 130

Cloud Software Review Subscription Payment Features 130

Clouded Judgement

FEBRUARY 24, 2023

So today, the median multiple is ~25% lower than where it’s longer term average (pre 2010 we don’t have much data on cloud software multiples as there weren’t many public cloud software companies). It makes sense the median multiple today is lower than the 2010-2020 average given the difference in rates.

Cloud 130

Cloud Subscription Payment Features Revenue 130

SaaStr

NOVEMBER 28, 2022

From 2010 until 2015, the SaaS world was becoming more complex with the introduction of static bundles and recurring revenue as an addition to the annual/monthly subscription model. Align on success metrics. Make sure your go-to-market teams and sales and finance teams align on success metrics. Era 2, SaaS 2.0: Era 3, SaaS 3.0:

Scale 185

Scale Finance Sales Hiring Scaling 185

SaaStr

MAY 29, 2019

About Claire Hughes Johnson… Sitting at number two on the list, Claire was the most steadily popular across all our metrics. His metrics were very popular across all categories and his experience as a tech executive, advisor and investor mirror this in his unique ability to succeed in many ventures simultaneously.

Payment Methods 213

Payment Methods Payment Solutions Payment Services Banking 213

SaaStr

JUNE 5, 2020

I argue that standard saas metrics make it possible for founders to scale using debt capital (production capital thats cheaper) instead of solely relying on venture capital (financial capital thats more expensive). . As SaaS Metrics Become Standardized, Banks Want In On The Action. Things started changing in 2011.

Venture Capital 214

Venture Capital Technical Review SaaS Scale 214

Tom Tunguz

JUNE 8, 2015

And in fact, ServiceNow has generated positive operating cash flow for every year but 2010. But that’s not to say the business isn’t very capital efficient. The company raised less than $90 million before IPO. Although not that well known, ServiceNow is a business to be studied.

Benchmarks 108

Benchmarks Metrics SaaS Investment 108

Tom Tunguz

JANUARY 14, 2015

Xero Income Statement 2007 2008 2009 2010 211 2012 2013 2014. Xero does exhibit an amazing sales efficiency metric of 1.05, meaning $1 invested today in sales and marketing yields $1.05 Growth 109% 265% 206% 123% 107% 88%. Gross Profit -0.8 -2.0 in gropss profit next year. The median SaaS company charts 0.81

Benchmarks 100

Benchmarks Metrics SMB Outsourced Development 100

OpenView Labs

MARCH 24, 2020

SaaS funders like OpenView Founder Scott Maxwell and Matrix Partners’ David Skok helped shape our current thinking on which metrics SaaS founders should track, as well as the drivers of those metrics. All of these metrics were different, but they had several things in common. These metrics: Kept growth front and center.

Metrics 43

Metrics Scale SaaS Sales Hiring 43

Tom Tunguz

OCTOBER 12, 2014

In 2009 and 2010, the company recognized more revenue from services than subscription. Unlike these other companies, WorkDay has employed a huge professional services team in addition in investing massively in their R&D to create a broad suite of products.

Benchmarks 108

Benchmarks Deferred Revenue Venture Capital Outsourced Development 108

Tom Tunguz

SEPTEMBER 21, 2014

Since at least 2010, Tableau has been run profitably. At the end of 2012, six months before the company would trade publicly, the business counted $39.3M

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

Tom Tunguz

FEBRUARY 24, 2016

But 2016 will likely herald some changes in the market, so many of these metrics will evolve this year. And to put things into context, seed investment has grown 5x since 2010, Series A investment has doubled and Series B+ has tripled. 2014 and 2015 were two of the largest VC investment years in the last 20.

Benchmarks 100

Benchmarks SaaS Pricing Investment 100

Tom Tunguz

FEBRUARY 10, 2015

So, I calculated this metric, which I’ll call the GP metric in this post, for all the publicly traded SaaS companies over their lifetimes. The chart above plots the median GP metric by years since founding. The GP metric trends from 100%+ to about 30% over about 15 years. I’ve added a horizontal line at 40%.

Data 121

Data Metrics Acquisition Churn 121

Tom Tunguz

APRIL 3, 2014

But afterwards, in both the 2006 and 2010 buckets, the median exceeded 1.15, indicating a remarkable increase in capital efficiency. The trend is more pronounced in the average metric which grew from 0.822 2.0 Splitting the 2010 IPO cohort in two, the medians look very different. Before 2002, the median ROIC never exceeded 0.9.

Startup 100

Startup Trends Investment Cloud 100

Baremetrics

AUGUST 6, 2021

mostly referred to as Stripe) was founded in 2010. In this article, we’ll compare Stripe metrics and Stripe reporting to what we offer at Baremetrics. What Metrics Are Calculated in Stripe? What Metrics Does Stripe Not Show? Stripe DOCS dashboard What Metrics Are Calculated in Stripe? Stripe, Inc.

Payment Services 98

Payment Services Payments SaaS Payments Payment Methods 98

SaaStr

APRIL 30, 2022

Check out this 2018 Europa session with Guillaume Princen, Head of France and Southern Europe @ Stripe, where he talks about the metrics you need to be focused on in your startup. If you don’t have the time to watch the whole session, here are the main metrics you should be mindful of. MRR, obviously. We talked about churn.

SaaS Payments 223

SaaS Payments Metrics Payment Methods Scale 223

Intercom, Inc.

OCTOBER 8, 2020

She was Trello ’s very first sales hire in 2010, built the company’s sales and account management teams, and was instrumental in scaling its business from 5 million to 25 million users within two years. In Kristen’s experience, having shared goals and metrics can go a long way to fostering a healthy relationship between sales and marketing.

Scale 205

Scale Sales Hiring Software Review Technical Review 205

Neil Patel

JULY 30, 2021

However, Google made the tool available to the public in 2010, which made it simpler for all website owners to access and use. It’s free to sign up, but paid packages start at just $29 per month, which gives you access to more detailed metrics and a larger number of branded links. All you had to do was input your long URL and Goo.gl

Social Media 134

Social Media Scale Mobile Branding 134

Frontegg

MAY 27, 2021

User-centric behavior data is a MUST: You are getting access to user-centric behavior metrics to scale up fast – your user journey can be optimized by the people who matter most – your clients. This metric is a strong future revenue indicator. Best For: Documentation, Development Metrics.

Payment Solutions 98

Payment Solutions SaaS Payments Payments Scale 98

Neil Patel

SEPTEMBER 17, 2020

It’s hard to believe Instagram started in 2010. Outline Your Goals and Metrics. In addition to understanding your goals, you also need to define your metrics clearly. It has turned into a marketing powerhouse. There are 1 billion monthly active Instagram users , and more than half of them use the platform every day.

Social Media 145

Social Media Branding Engagement Market Research 145

Chart Mogul

MARCH 9, 2020

Established in 2010, Buffer hardly needs an introduction. While Baremetrics was fulfilling the desire for public transparency, internally the team was using Looker almost exclusively to track and report revenue metrics. I realized we had a moving target for the most important metric in our company. What is Buffer.

Payment Solutions 113

Payment Solutions Payment Features Payments Social Media 113

Baremetrics

FEBRUARY 23, 2021

For those who are not yet familiar, Stripe is essentially an one-stop financial solution for eCommerce businesses that was founded in 2010. All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. Braintree: Pros and Cons Stripe vs. Braintree: Conclusion.

Merchant Services 59

Merchant Services Payment Services Payment Methods SaaS Payments 59

Neil Patel

SEPTEMBER 8, 2020

According to a BrightLocal survey , the top local search metrics for businesses were: Google rankings: The better your rankings, the more traffic you generate for your business. The thing about these metrics is they’re all pretty practical; local businesses need consistent cash flow. 7 Characteristics of a Great Local SEO Agency.

Technical Review 128

Technical Review Sales Hiring Software Review Mobile 128

OpenView Labs

MAY 1, 2019

He explained that growth teams “focus on the funnel in a holistic way […] because their mission is about the growth rate of a metric that tells a more complete picture of the business.”. Marketing teams typically focus on the top of the funnel metrics. He combines alignment on key metrics with low-stakes testing.

Sales Hiring 56

Sales Hiring Scale SaaS Payments Growth Hacking 56

OpenView Labs

JANUARY 19, 2022

Imagine what you’d search for in 2010 to find Slack. The most important metric to measure this step of the journey is the conversion of website visitors to free account sign-ups. OpenView compiles benchmarks on this metric annually , so check out the report if you want to see how your business stacks up. . Web design.

Scale 72

Scale Underperforming Technical Team Sales Hiring Marketing 72

Sales Hacker

SEPTEMBER 11, 2020

While there are various metrics and KPIs they will be tracking, there’s one underlying theme — growth. “ Founded in 2010. Raised seed in 2010. Founded in 2010. A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Just remember, Lyft isn’t the only success story.

Outsourcing Services 77

Outsourcing Services Scale Startup Outsourced Development 77

Natalia Luneva

DECEMBER 3, 2020

A lot of features that we needed to build by ourselves back in 2010-2015 are now standard features in a lot of help desk knowledgebase programs. Key customer support metrics SaaS companies need to track . It is because you lacked putting that out there where someone can find it and answer the question themselves.

Customer Support 91

Customer Support Technical Advisors Outsourcing Services SaaS 91

Neil Patel

JUNE 30, 2021

Google announced that user experience metrics would be used to rank sites, beginning in 2021. Page load speed has been a ranking factor for desktop searches since 2010, and Google announced it was also a ranking factor for mobile searches back in 2018. You’ve never had to wait for the New York Times to load, have you?

User Experience 136

User Experience Systems Review Mobile Branding 136

Baremetrics

OCTOBER 20, 2021

I faced exactly that decision in late 2010, when I was laid off. Baremetrics can keep tabs on all of your business metrics, such as MRR, ARR, ARPU and more. If you’re facing a decision, whether to continue being an employee or starting your own new business, that’s a tough one. I should know.

Business 102

Business Compensation Consulting Outsourced Development 102

Neil Patel

MARCH 24, 2021

Back in 2010, we wrote a thorough beginner’s guide to Google Webmaster Tools. Core website vitals are a set of metrics that impact your search ranking. Google Search Console is a suite of tools from Google that helps you track your site’s performance, find issues, and help your site rank higher in Google. Core Website Vitals.

Mobile 124

Mobile Software Review Web Development Web Developers 124

Intercom, Inc.

JULY 11, 2019

Since 2010, he’s helped the company grow to more than 40,000 customers and helped scale the support team to more than 500 employees to assist those users. Kaitlin: As you’re moving through these different stages, the metrics you need to be tracking at each stage change as well. You don’t have that many metrics.

Scale 188

Scale Scaling Sales Hiring Underperforming Technical Team 188

Intercom, Inc.

JANUARY 12, 2022

My job was to look at what was happening in the world economy – it was like 2010 at the time, and so everything was kind of falling apart – and then look at data about it and try to come up with recommendations about what policymakers should do. Podcast metrics, I think, are probably a good example of the complications with data.

Data 151

Data Airlines AWS Underperforming Technical Team 151

Kellblog

JANUARY 3, 2022

Is it because I like metrics , measurement, and incremental improvement? 6] I am not speaking of MarkLogic in its contemporary form (about which I know fairly little), but as it was in the 2004-2010 period when I ran it. Is it because I’m a perfectionist? Yes, I do. 5] Happily, I’ve also done plenty of time in Box 2! [6]

Sales Hiring 126

Sales Hiring Scale Consulting Leadership 126