Clouded Judgement

JANUARY 13, 2023

As a reminder - from 2010 - 2020 the average 10Y rate was ~2.3%. That was more broadly a period of ZIRP, and it’s interesting that today the 10Y isn’t hugely different from where it was in the period of 2010 - 2020 Morgan Stanley CIO Survey Everyone is eagerly awaiting 2023 forecasts to be “de-risked.”

Cloud 130

Cloud Forecasting Subscription Payment Features 130

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

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

Baremetrics

FEBRUARY 6, 2022

Managing the customer journey means understanding context and measuring the right metrics. Here are the CX metrics that you need to be monitoring and measuring if you want your customers to have the experience that your brand is fully capable of. Build a Customer Effort Score Always Measure the Right CX Metrics. Image source 1.

Metrics 106

Metrics Social Media Scale Churn 106

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

Baremetrics

AUGUST 6, 2021

mostly referred to as Stripe) was founded in 2010. Stripe is a payment processing company but is also used to create reports. Close to 2 million websites use Stripe reports and the company holds a 18.54% market share in the payments processing category. Stripe is a payment processor with some financial reporting.

Payment Services 98

Payment Services Payments SaaS Payments Payment Methods 98

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). . It’s hard to imagine a world where analysis didn’t understand recurring, subscription based revenue for technology products.

Venture Capital 222

Venture Capital Technical Review SaaS Scale 222

Chart Mogul

MARCH 9, 2020

Established in 2010, Buffer hardly needs an introduction. We spoke to Buffer’s CEO Joel Gascoigne about his experience building Buffer and the role and place subscription data plays for the company. For the first 2-3 years of Buffer’s existence, Joel and his team did not need a specialized solution for subscription analytics.

Payment Solutions 113

Payment Solutions Payment Features Payments Social Media 113

Tom Tunguz

OCTOBER 12, 2014

In 2009 and 2010, the company recognized more revenue from services than subscription. Over time, subscription revenue will continue to increase compared to services revenue. In contrast, WorkDay typically signs 3-5 subscription year agreements, so the subscription revenue is a substantial annuity of long duration.

Benchmarks 111

Benchmarks Deferred Revenue Venture Capital Outsourced Development 111

SaaStock

FEBRUARY 14, 2019

In 2010, he joined DGF Investimentos, one of the top VC firms in Brazil. In 2010, he became one of the Co-Founders of Warehouse Investimentos, a prominent Brazilian VC company. In 2010, he founded Influitive, which helps B2B companies employ brand advocates for faster growth and development. His focus there was deal-sourcing.

Technical Review 207

Technical Review Scale Entrepreneurship Sales Hiring 207

Tom Tunguz

SEPTEMBER 21, 2014

Tableau sells software the old-fashioned way, with perpetual licenses not subscriptions. To offset the mostly one-time payment from customers, Tableau employs a land-and-expand strategy. Since at least 2010, Tableau has been run profitably. Today, we’ll examine Tableau, the market leader for data visualization software.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

Chart Mogul

MARCH 9, 2020

Established in 2010, Buffer hardly needs an introduction. We spoke to Buffer’s CEO Joel Gascoigne about his experience building Buffer and the role and place subscription data plays for the company. For the first 2-3 years of Buffer’s existence, Joel and his team did not need a specialized solution for subscription analytics.

Payment Solutions 52

Payment Solutions Payment Features Payments Outsourcing Services 52

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. Instead you should focus on Natural Rate of Growth (NRG) to determine the percentage of recurring organic revenue. 6 ChargeBee.

Payment Solutions 98

Payment Solutions SaaS Payments Payments Scale 98

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

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. Transcript. Hi, everybody.

SaaS Payments 237

SaaS Payments Metrics Payment Methods Scale 237

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. Specializing in market and subscription payments, many eCommerce companies favor this third-party processor because it is quick, easy, and cost-effective. Braintree: Conclusion.

Merchant Services 59

Merchant Services Payment Services Payment Methods SaaS Payments 59

SaaStr

SEPTEMBER 12, 2019

Ashley Smith, Venture Partner at OpenView provides insight on what investors are looking for in product metrics and growth indicators so you can capitalize on your product’s story for funding. Many of our users begin their journey with Slack on our free subscription plan. Want to see more content like this? But it worked.

Investment 100

Investment Underperforming Technical Team Sales Hiring Software Review 100

OPEXEngine

NOVEMBER 22, 2022

Despite Intuit’s timing lead, Xero grew faster than Intuit’s Small Business Segment (products and subscriptions), outperforming the large competitor with an eight-year Compounded Annual Growth Rate (CAGR) of 52% versus 3% for Intuit. This is a typical result for an SMM SaaS business.

Business Model 52

Business Model SaaS Business Scale 52

SaaStock

MARCH 20, 2019

ProfitWell provides industry standard subscription financial metrics that uncover pockets of hidden revenue through unmatched subscription intelligence. ProfitWell is used by over five thousand subscription companies every day, including Meetup, HubSpot, and Teamwork.com. Founded: 2010. Based in: Boston, MA.

SaaS Payments 271

SaaS Payments Merchant Services Payment Solutions Payments 271

Sales Hacker

SEPTEMBER 11, 2020

While there are various metrics and KPIs they will be tracking, there’s one underlying theme — growth. “ If you sell an HR platform with a subscription that starts at 50 seats, you should scratch any seed-stage startups off your list. Founded in 2010. Raised seed in 2010. Founded in 2010. Raised Series D in 2016.

Outsourcing Services 77

Outsourcing Services Scale Startup Outsourced Development 77

Intercom, Inc.

APRIL 22, 2019

With the advent of the subscription economy, support is increasingly responsible for fostering that relationship over time (which can lead to more long-term revenue). The first steps to transforming your support team into a revenue team are to rethink your metrics and incentivize teams to ask “Why?” It has to be CEO-down.

Scale 156

Scale Scaling AI Search Underperforming Technical Team 156

Neil Patel

DECEMBER 30, 2022

Following the advice you got about video optimization back in 2010 won’t get you very far today. So, what’s a more valuable metric to look at? Promote subscriptions or notifications for your channel. Video SEO is one of those things that constantly evolves, making it tricky to understand. Add videos to playlists.

Social Media 89

Social Media Engineering Engagement Travel 89

SaaStr

NOVEMBER 28, 2019

Felix : And then kind of as we raised our series B round where we said, okay, let’s try to build a really good and successful company, that’s when we shifted to a hundred percent subscription. It can order subscription. But again, at the time SaaS wasn’t, subscription wasn’t the norm at all.

Sales Hiring 177

Sales Hiring Scale Sales Recruiting Government 177

SaaStock

MARCH 20, 2019

ProfitWell provides industry standard subscription financial metrics that uncover pockets of hidden revenue through unmatched subscription intelligence. ProfitWell is used by over five thousand subscription companies every day, including Meetup, HubSpot, and Teamwork.com. Founded: 2010. Based in: Boston, MA.

SaaS Payments 100

SaaS Payments Merchant Services Payment Solutions Payments 100

SmartKarrot

MAY 14, 2020

Customers are demanding more from the business in terms of services they can avail and with the month to month subscription plans, it has become much easier for them to switch vendors if their expectations are not met. Between 2000 to 2010: CRM, Web Channels, Mobile App . 2010: SaaS, 2013: Customer Success .

Customer Success 10

Customer Success Technical Review Software Review Business Model 10

Outseta

MAY 8, 2020

Exactly 10 years ago today—May 10, 2010—I slinked through office doors that opened to my first day of work at a “real job.” But techy people love technology and end up way over-serving themselves, resulting in a mountain of subscription charges, fractionally used tools, and others that simply drive little to no business value.

Part-Time VPE 102

Part-Time VPE Fractional VPE Sales Hiring Underperforming Technical Team 102

ProfitWell

JULY 15, 2019

Bundled service providers like AOL have phased out and cloud-based subscription services are enjoying their time in the sun. We’ve got words like subscription, ad supported, license, and ASP, that are well understood. One of the constraints most freemium models above impose on user is a value metric limit.

Pricing 41

Pricing Business Model Cloud Venture Capital 41

Hull

JANUARY 22, 2019

In 2010, Sean Ellis coined the term "Growth Hacking" Again, it's the same process being applied over more elements of the customer journey. Common ares of ownership we often see include: Payment operations - integration billing, subscription, accounting, and sales opportunity data. Same process, different medium.

SaaS Payments 77

SaaS Payments Technical Advisors Engineering Payment Solutions 77

SaaStr

OCTOBER 24, 2019

Jos White : We were fortunate enough to lead a Series A investment into Tradeshift back in 2010, I think. Because, market share is really number one metric. Christian Lanng : So we started with something very, very narrow, which was invoicing. You pay a subscription. So, I think the burn side, right?

Payments 103

Payments Payment Features SaaS Payments Underperforming Technical Team 103

SaaSOptics

AUGUST 16, 2018

We were born and raised and bred serving the needs of early stage emerging and growth SaaS and subscription based businesses. Exclusively, we have a modern financial platform for early stage and growth subscription businesses and really focusing on three major pain areas of these businesses. I’d like to introduce Brian Parks.

SaaS 40

SaaS Scale Sales Hiring Venture Capital 40

SaaSOptics

AUGUST 16, 2018

We were born and raised and bred serving the needs of early stage emerging and growth SaaS and subscription based businesses. Exclusively, we have a modern financial platform for early stage and growth subscription businesses and really focusing on three major pain areas of these businesses. I’d like to introduce Brian Parks.

SaaS 40

SaaS Scale Sales Hiring Venture Capital 40

SaaSOptics

AUGUST 16, 2018

We were born and raised and bred serving the needs of early stage emerging and growth SaaS and subscription based businesses. Exclusively, we have a modern financial platform for early stage and growth subscription businesses and really focusing on three major pain areas of these businesses. I’d like to introduce Brian Parks.

SaaS 40

SaaS Scale Sales Hiring Venture Capital 40

SaaStr

AUGUST 7, 2020

We distill that, we look at all the metrics by business unit, by geography, by product line, and then we unlock the investment we’re going to have for the next quarter, go and do it over and over again. Rob Bernshyten: I think you have to combine backwards looking metrics. I can think about it [crosstalk 00:28:26].

Payment Solutions 149

Payment Solutions Pricing Payments Payment Services 149

Intercom, Inc.

FEBRUARY 6, 2020

When Eren Bali founded Udemy in 2010, he had a vision for what the marketplace would be: a place where anyone could teach and learn anything. So those are regular metrics that we are looking at all the time. Turning a sales objection into a unique differentiator. The most amazing part about our business is we are direct-to-consumer.

Marketplace as a Service 243

Marketplace as a Service Scale Sales Recruiting Business 243

Neil Patel

NOVEMBER 4, 2020

This provides useful metrics in how you compare in search engine land. Google included site speed as one of the 200 signals in its search ranking algorithm back in 2010. At the click of a button, you can access important metrics about a webpage like its Page Authority, Domain Authority, Link Profile, Keyword Highlights, etc.

Social Media 145

Social Media Software Review Mobile Metrics 145

Intercom, Inc.

MAY 10, 2018

First zero in on a strategy for achieving your desired outcome , and then pick high quality metrics to validate your tests. When I think about growth and Dropbox, Drew Houston’s classic talk from the 2010 Startup Lessons Learned Conference immediately comes to mind. Adam Risman: Andrew, welcome to Inside Intercom.

Acquisition 224

Acquisition Marketplace as a Service Retention Startup 224