Tom Tunguz

JANUARY 1, 2017

Let’s look at some of the key metrics and then compare AppDynamics to NewRelic, a close competitor which went public in late 2014. First, Subscription generated 80% of the revenue in 2014. Based in San Francisco, AppDynamics employs about 1200 people and has raised approximately $315M to date. of revenue).

Benchmarks 100

Benchmarks Metrics Software Review SaaS 100

Tom Tunguz

JUNE 20, 2019

Just a quick reminder on these metrics. In 2014, the median touched 7.7x And investors understand these businesses at a deeper level than they have in the past because companies disclose key metrics like net dollar retention. As of mid-June, the public markets value software companies at all-time highs. two years later.

SaaS 280

SaaS Enterprise Software Metrics 280

Chart Mogul

NOVEMBER 19, 2018

Learn how to identify trends in behavior across the entire customer lifetime with cohorts Before we get started, let’s address the elephant in the room: Cohort analyses aren’t exactly a SaaS metric. A cohort analysis is a visual chart for plotting and comparing the progression of specific metrics for each cohort over time.

Metrics 45

Metrics SaaS Churn Retention 45

SaaStr

MARCH 31, 2021

2014: $500k rev. But since the effective NRR is still 145%, ARR-style metrics still work. And then after a decade … it started to come together. Revenue grew nicely at first from $1m to $3.5m from 2015 to 2016 … and then exploded: UIPath History. 2005: Started as a tech outsourcing company. seed round. 2015: $1m rev.

Outsourcing Services 359

Outsourcing Services Outsourced Development Payment Features Cloud 359

ProfitWell

JULY 23, 2020

Here are some popular DTC brands that may ring a bell: Casper: Online mattress company founded in 2014. I’ve compiled a list of certain DTC metrics that should be on your radar at all times. 9 most important direct-to-consumer metrics. Tracking metrics will help you build momentum and unlock growth. Customer LTV.

Payment Methods 56

Payment Methods Metrics SaaS Payments Customer Lifetime Value 56

Tom Tunguz

JANUARY 14, 2015

In fact, below I’ve copied Xero’s P&L from its first year since founding all the way through 2014 - a data set I never thought I would be able to publish on any company for confidentiality reasons. Xero Income Statement 2007 2008 2009 2010 211 2012 2013 2014. Growth 109% 265% 206% 123% 107% 88%. Gross Profit -0.8 -2.0

Benchmarks 100

Benchmarks Metrics SMB Outsourced Development 100

Chart Mogul

SEPTEMBER 4, 2018

Today we're launching an email course enabling anyone in SaaS to get to a baseline level of knowledge on metrics, no matter their level of experience. Right from that first SaaS Metrics Cheat Sheet , our vision was — and remains to this day — that metrics and data are central to sustainable, measured growth. Course outline.

Metrics 45

Metrics SaaS Churn Revenue 45

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 219

Payment Methods Payment Solutions Payment Services Banking 219

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. Gross margin 85%?

Venture Capital 218

Venture Capital Technical Review SaaS Scale 218

Tom Tunguz

JANUARY 14, 2016

Starting in 2014, and perhaps even a bit before, startups have been able to raise capital at better terms than at any time since 2000. In 2016, the question that will immediately follow, “What is your annual growth rate?” ” will be “What are your unit economics?” More money raised for less dilution.

Startup 100

Startup Metrics Transportation Marketplace as a Service 100

Tom Tunguz

JUNE 8, 2015

sales efficiency for every year on record but 2014. This ability to upsell and cross sell customers has benefited the company tremendously. ServiceNow has recorded a better than 1.0 amazingly, the company was able to achieve an estimated sales efficiency of 1.8 at $93M in revenue.

Benchmarks 113

Benchmarks Metrics SaaS Investment 113

SaaStr

JUNE 30, 2023

You need to parse through the vanity metrics and figure out what will endure. Braze didn’t find a true product-market fit until around 2014-2015. They were building for a market that didn’t exist so they could sell to job titles that also didn’t exist. If you’re building a generational company, you need to think long-term.

Scale 187

Scale Mobile Venture Capital Scaling 187

Tom Tunguz

JULY 29, 2015

The combination of high gross margins in software which in 2014 were 85%, and the zero gross margins in professional services average out to 69%, which is right on the median for public SaaS companies. Netsuite operates its professional services division at 0% gross margin - basically at cost - which is in the middle of the pack.

Benchmarks 113

Benchmarks Outsourced Development Metrics Scale 113

Tom Tunguz

NOVEMBER 16, 2014

The company reported $63M in trailing twelve months’ of revenue in their 2014 fiscal year which is right at the median. The incredible consistency of the gross margin might indicate the company actually manages pricing to this metric. Impressively, New Relic increased revenue 213% y/y. but recently that figure fell to 0.98

Benchmarks 100

Benchmarks Underperforming Technical Team Metrics Sales Hiring 100

SaaStr

MAY 14, 2021

I hope you have a plan for MQLs (or whatever lead metric you use) this year. That’s why even Parker Conrad of Zenefits was on Salesforce Live, even with that amazing 2014. Here are 5 things you can do that will tilt your growth rate at least a bit higher: 1. Increase the MQL (Marketing Qualified Lead) plan by 20%. They need it.

Sales Hiring 269

Sales Hiring Scale Engineering Customer Success 269

Tom Tunguz

DECEMBER 12, 2018

At Google, I learned page load time is highly correlated to engagement metrics including bounce rate and time on site. Hugo : I moved to a static site generator in 2014. The net result from that effort is a 90% reduction in page load time from 5 seconds to about 500 milliseconds. I’ve been focused on it ever since.

Cloud 170

Cloud Customer Support Metrics Engagement 170

Tom Tunguz

OCTOBER 21, 2017

Over that 20 year period, annual SaaS investment has increased 20x, peaking in 2014 at $7B. I’m using SaaS seed rounds as a proxy metric. Since then, many major categories of software have been saasified. Venture capitalists have financed many of those businesses. Those venture dollars have financed a panoply of competition.

SaaS 189

SaaS Venture Capital Finance Machine Learning 189

Tom Tunguz

AUGUST 20, 2017

In 2014, the average software company traded at 7.7x is a good summary metric for long-term analysis of next generation software companies. We’ve seen quite a bit of volatility in the valuations of publicly traded software companies over the last 5 years. forward revenues - the sum of projected revenues over the next 12 months.

Marketing 178

Marketing SaaS Software Revenue 178

Tom Tunguz

AUGUST 26, 2014

I've estimated $113M in revenue for 2014 by extrapolating their first six months of revenue this year and applying the 2013 growth rate to it. Only WIX became a public company faster, achieving the mark in 7 years. Impressively, HubSpot has been able to record much faster revenue growth than other SMB SaaS companies.

Benchmarks 113

Benchmarks SMB Metrics SaaS 113

Tom Tunguz

NOVEMBER 8, 2015

But compared to 2014, 2015 was a meager year for startups looking to go public or be acquired. In 2014, $11B of disclosed M&A occurred. However, in 2015 the median acquisition was worth $410M, compared to $193M in 2014, indicating that buyers are not buying as frequently, but when they are, they spend more. or about 7.7%.

Startup 100

Startup Software Data Acquisition 100

Tom Tunguz

FEBRUARY 28, 2017

The median forward revenue multiple for SaaS business reached its peak in February 2014, fell to its nadir two years later, and has since recovered, hovering at around five times forward revenue – where it has remained with little variance over the last six months. In 2014, forward revenue multiples ranged from 1× to more than 20x.

SaaS 100

SaaS Acquisition Trends Retention 100

Tom Tunguz

SEPTEMBER 29, 2014

MobileIron went public on Jun 12, 2014 with $100M in revenue and more than 6,000 customers. The company delivers its product both as perpetual license software and as-a-Service. We will explore the differences in these delivery models and the implications for the business.

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

Tom Tunguz

APRIL 26, 2015

The Information reported last week that in 2014, only 11% of tech IPOs in 2014 were profitable when they became publicly traded companies, an all time low stretching back to 1980, when the figure was 88%. Some like LinkedIn do this in spectacular fashion, charting more than $569M in 2014 cash from operations.

Payment Services 100

Payment Services Startup Payments Payment Solutions 100

Neil Patel

JANUARY 27, 2021

Social Media Metrics (and Their Impact on Content Marketing). In 2014, social media was becoming the place to post your content. And I’m not just talking about clicks, likes, and favorites, often referred to as the vanity metrics. The average blog post was 808 words in 2014, but was 1142 words in 2017. Not anymore.

Content Marketing 143

Content Marketing Marketing Social Media Artificial Intelligence 143

Tom Tunguz

JUNE 9, 2015

The upsell rate was 36%, 31% and 30% for the years ended December 31, 2014, 2013 and 2012, respectively. While it’s a great metric, using upsell rate alone to judge the health of the business can lead to false conclusions. Consider adding renewal rate to your SaaS startup’s key metrics.

Churn 100

Churn SaaS Retention Startup 100

SaaSHolic

MARCH 20, 2023

Logo na sequência, começaram as demandas da Plural e senti na pele o que ouvi de clientes que atendi como CS de Inbound Marketing em 2014: “falta braço pra escrever”. Logo na sequência, começaram as demandas da Plural e senti na pele o que ouvi de clientes que atendi como CS de Inbound Marketing em 2014: “falta braço pra escrever”.

SaaS 52

SaaS Sales Management Metrics 52

SaaStr

OCTOBER 11, 2023

Since starting the company in 2014, there wasn’t a lot of money you could raise in a startup. All the metrics we’re using — LTV to CAC, CAC return rate — don’t take cash into account. But they refused to fly blind. Big Brain was an internal tool to track revenue, marketing expenses, and usage of the product. Before, they burned $.16

Scale 164

Scale Sales Hiring Scaling Banking 164

Neil Patel

JUNE 18, 2021

This handy metric tells you exactly how effective you are as a social seller while highlighting how you can improve. Launched in 2014, LinkedIn’s Social Selling Index (SSI) measures how effective you are at social selling on the platform. We’ll discuss what each of these metrics means in detail next. It’s a fair question.

Social Media 124

Social Media Benchmarks Metrics Branding 124

Tom Tunguz

AUGUST 10, 2014

The chart above compares the competition in the Play store in early 2013 and in mid-2014. In mid-2014, apps’ rank volatility is far more uniformly distributed, meaning mobile apps are moving up and down all the time, implying strong competition and a vibrant market. Second, the iOS store has also become more competitive.

Mobile 100

Mobile Trends Startup Acquisition 100

Tom Tunguz

FEBRUARY 24, 2016

Companies in the set who raised in 2014 recorded $50k in MRR at the time of the A. But 2016 will likely herald some changes in the market, so many of these metrics will evolve this year. 2014 and 2015 were two of the largest VC investment years in the last 20.

Benchmarks 100

Benchmarks SaaS Pricing Investment 100

Tom Tunguz

APRIL 3, 2014

To answer that question, I’ve taken the same basket of public SaaS companies and computed a revenue-on-invested-capital (ROIC) across the four 4-year IPO cohorts from 1998-2014. The revenue-on-invested-capital is the revenue at IPO divided by the venture dollars raised pre-IPO, inflation adjusted and measured in 2014 dollars.

Startup 100

Startup Trends Investment Cloud 100

Tom Tunguz

NOVEMBER 29, 2016

All these metrics form part of the financial statements of SaaS companies. Early stage companies should research the implications for their businesses to determine if the regulation, called ASU 2014-09 has ramifications for their revenue recognition practices. Bookings, MRR, Revenue. I am not an accountant.

SaaS 100

SaaS Consulting Benchmarks Startup 100

Tom Tunguz

JUNE 2, 2015

In a recent podcast , Ron Gill, the CFO of Netsuite - a $7B+ market cap company with about $600M in 2014 revenue, which provides ERP software to mid-market companies - articulated the importance of the Lifetime Value / Cost of Customer Acquisition (LTV/CAC) ratio for his company.

Startup 113

Startup SaaS Churn Engineering 113

OpenView Labs

MAY 24, 2021

Like OpenView’s coverage of SaaS metrics and benchmarks? This new way of thinking about R&D spend also requires companies to rethink the relevance of classic SaaS metrics like CAC payback, which only consider Sales and Marketing costs as part of customer acquisition.). Hint: You have to look beyond the website or pricing page.

Scale 98

Scale Headcount Sales Hiring Benchmarks 98

OpenView Labs

MAY 27, 2020

Within eight years, HubSpot grew from zero to $100+ million revenue with an IPO in 2014. A lot of the benefits that Growth has brought to companies is distilling your funnel down to these very concise metrics and the ones that actually matter,” Kieran explained. This pod would then work closely together to impact a specific metric.

B2B 52

B2B Acquisition Metrics Engineering 52

Intercom, Inc.

AUGUST 8, 2019

From Twitter, I ended up going to Slack in 2014, about six months after it launched. Kaitlin: Turning our attention to your time at Slack, you joined in 2014, as mentioned. Kaitlin: I’m sure it’s changed over the years, certainly since 2014. So we look at those metrics as well. Growing a great culture.

Scale 168

Scale Scaling Engineering Branding 168

ChurnZero

JANUARY 20, 2021

Mattias Putman and Ewout Meyns launched PieSync in 2014 with a goal in mind: keep customers satisfied. Clearbit, a B2B tool that personalizes customer interactions, initially focused on top-line revenue as a key metric. That number jumps to 60-70% when you consider selling to your existing customers, according to Market Metrics.

Customer Success 98

Customer Success Scale SaaS B2B 98