article thumbnail

5 Interesting Learnings from Canva at Almost $2 Billion in ARR

SaaStr

Canva: – Almost $2B ARR – Growing 40%+ – Profitable And … 4,000 employees That's about $500k in revenue per employee That's where software really makes money — Jason ✨Be Kind✨ Lemkin  ?? 4,000 Employees, So About $500,000 in Revenue Per Employee That’s very efficient.

AWS 263
article thumbnail

SaaS Multiples Are At a 3+ Year Low. Where It Goes From Here.

SaaStr

Ultimately — revenue multiples. Revenue multiples are how much VCs, investors, and ultimately, an IPO and public markets will value each dollar of revenue. Revenue multiples don’t affect customers, or even revenue itself. The Bear Case: Multiples are still elevated compared to the pre-2018 period.

SaaS 337
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

When did cloud computing start to become popular?

SaaStr

Around 2013 or so, the Cloud started to grow far faster than any of us had thought it would: Amazon Web Services revenue 2018 | Statista. That $200b+ of additional Cloud and SaaS spend fueled 50+ Cloud unicorns and massive growth in AWS, Azure, etc. The markets took a while to catch up. There were dips in 2016 and otherwise.

Cloud 128
article thumbnail

5 Interesting Learnings from Xero. As It Crosses $650m in ARR.

SaaStr

Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! Expanding into new markets is never cheap, and while Xero is very efficient overall, it’s cost to acquire a customer went up from $376 in 2018 to $397 in 2019. This is fairly low.

SMB 225
article thumbnail

How to Categorize Expenses in a SaaS Startup v2.0

Baremetrics

Benefits of using Expense Categories in SaaS The main expense categories for any SaaS company are: Cost of Revenue Research & Development Sales & Marketing General & Admin These four categories are the standard for describing costs and expenses of any SaaS company from Salesforce to Zoom to your startup.

article thumbnail

SaaS companies quickly replacing subscriptions with usage-based pricing

OPEXEngine

The pricing model, which leads to increases or decreases in revenue based on how much customers engage with a service, has been gaining on the more traditional subscription model as the main way SaaS companies make money. It has tended to be used most in infrastructure platforms, like AWS, Google Cloud, and Azure. Pricing model growth.

article thumbnail

Our New Transparent Pricing Dashboard: Where Your Money Goes When You Buy a Buffer Subscription

Buffer Resources

Our hosting costs include service providers like AWS, Cloudflare, MongoDb, Twitter, etc. percent of our total revenue and 83 percent of our fees. of our total revenue and 17 percent of our fees. Merchant Fees At Buffer, we rely on Stripe, Google, and Apple for our payment processing needs. Stripe payments make up 98.5