SaaStr

DECEMBER 21, 2023

In practice, you take the valuation of a business and divide it by some metrics to get a multiple. Most commonly, the metric for software is forward revenue — Next 12 Months (NTM). Other metrics you can use to value companies are free cash flow or net income, but not all have that, so the multiple would be negative.

SaaS 257

SaaS Software Metrics Revenue 257

OpenView Labs

NOVEMBER 30, 2021

In 2021 the ‘ Rule of 40’ died, according to our latest 2021 Financial & Operating Benchmarks report that launched last week. . For publicly traded companies that are growing 50% or faster, median valuation multiples have increased by an incredible 649% between 2015 and August 201. Today growth appears to be all that matters.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

SaaStr

SEPTEMBER 17, 2020

“Our journey with JFrog started back in November 2015 when I first met CEO and co-founder Shlomi Ben Haim and the JFrog team,” said Jai Das, who is the president and managing director at Sapphire Ventures , which participated in the $50 million Series C investment. “One That’s the benchmark we are looking for.”.

New CTO 207

New CTO CTO Benchmarks Consulting 207

Chart Mogul

NOVEMBER 3, 2023

The public SaaS market more than doubled in five years, from 2015 to 2020. In many ways, 2022 (Q2-ish) marked the end of … The public SaaS market more than doubled in five years, from 2015 to 2020. What are the panels favorite metrics tied to efficiency? That’s where benchmarks can help.

AI Search 52

AI Search Benchmarks Venture Capital AI 52

OPEXEngine

JUNE 2, 2022

In the US alone, VC investment in SaaS hit $90 billion in 2021, the highest on record, with over 263 US SaaS VC deals greater than $100 million – 3x the total the previous year and 7x the total in 2015, according to Silicon Valley Bank. OPEXEngine just published the latest financial and operational benchmarks to our platform.

Benchmarks 64

Benchmarks SaaS Banking Trends 64

OPEXEngine

JUNE 25, 2020

However, the ripple effects from the rest of the economy have slowed growth for most companies and makes cash flow an even more important metric to stress test whether a company can manage thru the current changing environment. Median net cash from operations had been reduced 5X times since 2015 for smaller SaaS companies.

Benchmarks 52

Benchmarks SaaS Airlines Travel 52

OPEXEngine

JUNE 23, 2021

This metric is one of the many ways to look at the capital efficiency and profitability of a SaaS business. The basic way to calculate this metric is to divide CAC by Average Revenue per Customer Account or ARPA. I would say that both are good metrics; each gives you slightly different information.

Benchmarks 52

Benchmarks Acquisition SMB Software Review 52

Tom Tunguz

DECEMBER 6, 2016

To answer that question, we can analyze the data set of all software companies acquired over the last six years and benchmark them by enterprise value-to-revenue multiples. 2013 was a banner year, followed by a steep drop in 2015 and a slight recovery in 2016 at 11.5x. EV/Revenue multiple is a composite metric.

Acquisition 100

Acquisition Startup SaaS Benchmarks 100

OpenView Labs

FEBRUARY 3, 2022

As part of our last three annual finance and operating benchmarks surveys, we’ve asked nearly 2,000 startup founders and leaders of B2B SaaS businesses this simple question: “What’s keeping you up at night?”. It’s one of my favorite questions, even though it’s really not a financial or operating metric at all. .

Sales Hiring 82

Sales Hiring Sales Recruiting Scale Startup 82

The Angel VC

NOVEMBER 29, 2013

Depending on the stage that you’re in you’ll want to focus on different metrics. The key message of the chart is that in the beginning you can focus on a small set of metrics, but as time goes by and you’re making progress you need to add additional KPIs to your cockpit. Firstly there just aren’t many metrics to keep an eye on yet.

Scale 190

Scale Startup SaaS Customer Lifetime Value 190

OPEXEngine

FEBRUARY 1, 2022

According to Gartner , the SaaS industry has grown from $35 billion in 2015 to $145 billion in 2021. You want to define and obsess over your unit economics and critical SaaS metrics. Analytics builds a deep understanding of the efficiency in the business and where you can do better by benchmarking against the best in class.

SaaS Payments 52

SaaS Payments Payment Services Payment Solutions SaaS 52

Brian Balfour

FEBRUARY 7, 2017

The biggest retention questions at SoundCloud Around late 2014 to early 2015, the SoundCloud team identified retention as an area of improvement, especially on the mobile side. It actually wasn't too bad at SoundCloud, by industry benchmarks, Andy told me. But, retention can always be better. “If

Mobile 62

Mobile Retention Benchmarks Underperforming Technical Team 62

ProfitWell

NOVEMBER 1, 2019

It’s a mess—not just because every team has different incentives, but also because none of these metrics focuses on retaining customers. “It David Cancel, founder and CEO of Drift, shared a simple solution in his talk at SaaSFest 2015 : design your internal metrics for every department to incentivize customer retention.

Retention 56

Retention Strategy Underperforming Technical Team SaaS 56

BetterCloud

SEPTEMBER 30, 2021

This is nearly a 7x increase in SaaS app usage since 2017, and almost a 14x increase since 2015. Up from an average of 80 apps last year, this year organizations use 110 apps, for a 38% increase. The biggest SaaS management challenge? Lack of visibility. More SaaS brings more challenges.

Scale 59

Scale Trends SaaS Operational efficiency. 59

OpenView Labs

JANUARY 29, 2020

Freemium benchmarks. Key Metrics to Track for Converting Freemium to Paid. Here are the metrics you absolutely need to be tracking to get freemium right. Pick the wrong value metric for your freemium plan and you’ve found yourself headed straight for disaster. Learn how to avoid catastrophe here.

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82

SmartKarrot

JANUARY 15, 2021

In 2015, venture capitalists began to popularize the Rule of 40 as a health check for SaaS companies. The metric allows for an adjustment between short term profitability and growth investments. Who should follow The Rule of 40 benchmark? Benchmarks of Rule of 40. However, it is one metric in the multiple ones.

SaaS 10

SaaS Benchmarks User Experience Metrics 10

Tom Tunguz

NOVEMBER 9, 2015

In 2015, the company will generate $320M in revenue. These metrics simply unheard of. In 2015, Atlassian will generate more than $65M in free cash flow. If we project the company to grow at 45% in 2016, a similar growth rate to 2015, then revenues will total about $460M. range of 2.5 Atlassian operates at 83.4%

Benchmarks 117

Benchmarks Metrics Venture Capital SaaS 117

Buffer Resources

JANUARY 25, 2024

There were a variety of workflows and rituals that we chose to make transparent, such as our metrics and finances, internal and external communication, and our efforts toward self-improvement (another of our values). In 2015, we made our first significant iteration of the salary formula.

Systems Review 131

Systems Review Compensation Benchmarks Scale 131

Buffer Resources

JANUARY 25, 2024

There were a variety of workflows and rituals that we chose to make transparent, such as our metrics and finances, internal and external communication, and our efforts toward self-improvement (another of our values). In 2015, we made our first significant iteration of the salary formula.

Systems Review 130

Systems Review Compensation Benchmarks Scale 130

Chart Mogul

MARCH 6, 2018

Spotify's recent F-1 filing is packed full of metrics and insights into both consumer subscriptions and the streaming music industry. This somewhat risky direct listing is likely to be a benchmark for other future public listings in 2018, with the likes of Airbnb predicted to follow suit if all goes to plan. in 2015 to €5.32

Payments 75

Payments Metrics EKS (Elastic Kubernetes Service) SaaS Payments 75

Chart Mogul

FEBRUARY 11, 2020

Therefore, it’s critical to monitor onboarding metrics that signal whether a user is succeeding or sinking. Looking at industry benchmarks are interesting, but the only real test is tracking your company’s progress over time. While conversions are an essential metric, they don’t tell us much about the details of the onboarding process.

Onboarding 132

Onboarding SaaS Technical Review Churn 132

Chart Mogul

FEBRUARY 11, 2020

Therefore, it’s critical to monitor onboarding metrics that signal whether a user is succeeding or sinking. Looking at industry benchmarks are interesting, but the only real test is tracking your company’s progress over time. While conversions are an essential metric, they don’t tell us much about the details of the onboarding process.

Onboarding 52

Onboarding SaaS Technical Review Churn 52

Neil Patel

APRIL 9, 2021

That’s a 10% increase over 2015. Google provides insights (more on that in a bit) and engagement metrics for each post, but it’s also a good idea to set up UTM parameters for links as well. Google also enables you to benchmark your user-generated content (specifically your photo gallery) against your competitors. It’s simple.

Software Review 145

Software Review Business Sales Mobile 145

Sales Hacker

OCTOBER 7, 2021

are just as critical as understanding the fundamental SaaS metrics such as LTV/CAC, payback, etc. She has published over 100 industry-leading research papers on the strategies, benchmarks, and best practices of high-growth sales and marketing organizations. Understanding how various decisions impact the company’s margin (e.g.

Scale 130

Scale Sales Recruiting Sales Hiring VP of Engineering 130

SaaStr

MAY 21, 2019

In fact, 2015 was the prior record, 2018 was over twice that. Byron: And 2015 was a pretty good year. We think back, many of you were probably here for SaaStr Annual in 2015. Kristina : So, in summary, there are four tactics that we’ve called out, or metrics, to building a resilient company.

Cloud 166

Cloud Scale Finance Retention 166