Tom Tunguz

DECEMBER 17, 2018

The five most popular posts of 2018 were: The Strategic Shift in Revenue for SaaS Startups as They Scale - or popular by any other post by a factor of 10, this post discusses the importance of focusing on renewals as a business reaches $10M, $20M and beyond in ARR.

Acquisition 126

Acquisition Interviewing Cloud Pricing 126

SaaStr

MARCH 31, 2021

UiPath is one of the most amazing not-really-an-overnight success stories in Cloud, SaaS and software. It was founded way back in 2005 as an outsourcing company, then developed Windows software to automate scripts and more, and turned this into a powerhouse for automating complex functions integrating Cloud and on-prem. seed round.

Outsourcing Services 360

Outsourcing Services Outsourced Development Payment Features Cloud 360

SaaStr

JUNE 9, 2021

Professional Services remains 20% of revenues, even at $2B in ARR. Salesforce , for example, only gets 6% of its revenue from services. But it’s interesting to see that even at $2B in ARR, Veeva continues to “in-source” professional services: More on services revenue here. #2. 5 Interesting Learnings: #1.

Scale 281

Scale Cloud Enterprise Scaling 281

Tom Tunguz

DECEMBER 12, 2021

This chart shows the median and the 75th percentile of enterprise value/forward revenue multiple for the basket of public stocks which were public at that moment in time. Cloud companies' fast growth multiplied by an appreciation in multiples has pushed valuations higher since 2014. But let’s look at the most recent five years.

SaaS 357

SaaS Cloud Enterprise Software 357

SaaStr

OCTOBER 15, 2022

Let’s all be clear, 2021 was insane: * SPACs worth billions with no revenue * Multiples magically tripled * Fintechs with 10% GMs worth same as 80% GMs * #5 in market got same premium as #1 * Growth stage seen as free money * Seed VCs bought in $3B-10B rounds vs sell. Let’s look at 2018-202 0. That’s massive change.

Startup 233

Startup Cloud Growth Marketing SaaS 233

SaaStr

JUNE 24, 2021

SproutSocial is a great one to track NRR because they have a pretty even (by revenue) mix of customers small, medium and large. For Sprout Social, a $10k a year customer is a bigger customer, and the fastest growing segment, up 44%. SMB, Mid-Market and “Enterprise” are all about equal segments of revenue: #3.

Social Media 265

Social Media SMB Cloud Scale 265

SaaStr

JULY 14, 2022

This led to our first meet-ups in 2013 and 2014, the first SaaStr Annual in 2015 , the industry’s leading podcast in 2016, the first SaaS founder coworking space in 2017, and SaaStr Pro , the first learning management system for SaaS founders in 2018. Revenue leaders were able to network once again. Back together again!

Scale 268

Scale Sales Recruiting CTO Hire New CTO 268

SaaStr

JUNE 1, 2022

It’s not slowing down Salesforce, Snowflake, or almost any other SaaS or Cloud leader. Certainly, public SaaS revenue multiples are way down, and that’s impacted many things, including making VC fundraising substantially harder than in the go-go days of 2021. Blame “the economy” too much, and you’re doing yourself a disservice.

Sales Hiring 307

Sales Hiring Acquisition Cloud Enterprise 307

Sales Hacker

FEBRUARY 15, 2018

15, 2018 – Sales Hacker, the leading resource for sales innovation, acceleration, and the future of sales, is set to host The Revenue Summit , on March 1st, 2018 in San Francisco, California. Who Is The Revenue Summit For? Director, SMB Sales, Google Cloud. SAN FRANCISCO, CA – Feb. Ran Xiao – Dir.

Scale 67

Scale Customer Success Revenue Marketing 67

Sales Hacker

MARCH 22, 2018

Sales Hacker has once again brought another electrifying edition of The Revenue Summit! This recap is perfect for a skimmer—it covers the highlights from my top 5 sessions at Revenue Summit. Simply put, there are two ways to increase revenue—sell more, sell better. 2) Everything You Need to Know About Cold Calling in 2018.

Scale 68

Scale Revenue Forecasting SMB 68

SaaStr

JUNE 3, 2021

Revenue growth accelerated from 32% to 41% * And new customer growth accelerated to a crazy 45% YoY * All while keeping ACVs constant at ~10k. Zscaler , a quiet giant in Cloud security, also accelerated to 60% growth at $700m ARR! Cloud is just on fire. It accelerated. They did it the hard way, with SMBs. Seize the day.

Cloud 271

Cloud Scaling SaaS Revenue 271

SaaStr

MAY 11, 2022

They’ve now cruised to $2B in ARR, but the world for Cloud and SaaS stocks has changed a lot. And while its core Defense Business has slowed down substantially for now, its Commercial Business, while just 15% of revenues today, is accelerating. But I would have expected revenue to grow even more, when combined with 124% NRR. #4.

Government 247

Government Scaling Cloud Revenue 247

Intercom, Inc.

AUGUST 12, 2021

He’s been the Chief Revenue Officer and Chief Strategy Officer at Dialpad, the cloud communication platform, since the spring of 2018, but his fascination for conversations and natural language processing came even sooner. Push support to drive revenue. Dialpad is a cloud communication and collaboration platform.

Revenue 223

Revenue Scale AI Search Customer Support 223

Totango

JANUARY 22, 2018

Our world-class speaker lineup for 2018 Customer Success Summit will share the impressive business results that customer success best practices should deliver. Dante is the Manager of Partner & Customer Experience at Google Cloud. Customer Success Summit brings together the best and brightest minds in Customer Success. Dante Otero.

Customer Success 77

Customer Success Sales Recruiting Sales Hiring Scale 77

SaaStr

MAY 20, 2020

I did a version of this Old Me-Young Me post in 2018. Then: – Assume overall Cloud spend doubles in 5 years (maybe more) – Assume your Market Share grows 5x in 5 ys – Assume you figure out how to 3x your ACV. The Cloud is getting huge and everyone wants to be a part of the success stories, even the imperfect ones.

Sales Recruiting 263

Sales Recruiting Cloud Retention Revenue 263

SaaStr

JANUARY 2, 2020

If you can get to $10m ARR, with positive revenue retention, you can indeed get to $300m ARR. So riding this wave alone should 2x your revenue, maybe even 4x it. It’s why all the Cloud leaders today are marching to $1B+ in ARR or have blown past it, from Zendesk to Twilio to Hubspot and more. VCs may mock this.

Retention 244

Retention Cloud Churn Pricing 244

SaaStr

JANUARY 15, 2021

Only annual contracts, and plenty of professional services (25% of revenue). 99% of its customers are on annual contracts, and 25% of its revenue is from professional services. 25% of revenue from services may sound high, but it’s a fairly standard ratio in true enterprise software. About $250,000 revenue per employee.

Enterprise 241

Enterprise Scaling Investment Revenue 241

SaaStr

FEBRUARY 9, 2021

Its Top 10 Customers have historically paid about 20% of its total revenue, so its whales matter, paying ~$2m a year on average each. Significant Professional Services — 20%+ of their revenue. 29% of customers now buy more than 1 product from ON24, up from 15% in 2018. 23% of revenue from international.

Scale 221

Scale Enterprise Scaling Cloud 221

SaaStr

OCTOBER 31, 2019

Bessemer Venture Partners’ Alex Ferrara takes a look at trends and predictions for the cloud industry in 2019. One of the most popular sessions from SaaStr Annual, this presentation will provides an in-depth look at the cloud computing industry across Europe and globally. Want to see more content like this? A few more.

Cloud 100

Cloud Scale AWS Machine Learning 100

SaaStr

APRIL 4, 2019

Join us for a fireside chat between Google Cloud and Zenoss, a leader in software-defined IT operations, as we discuss the most common and emerging challenges facing SaaS companies today for both technical and non-technical backgrounds. Eyal Manor – VP, Engineering @ Google Cloud. Want to see more content like this session?

Cloud 165

Cloud Scale Trends Machine Learning 165

SaaStr

DECEMBER 10, 2019

These are also 3 out of 4 of Salesforce’s big “Clouds”: But … Salesforce has become very enterprise. It’s average revenue per customer is ~$10,000. HubSpot Reports Q4 and Full Year 2018 Results. Yes, it has SMB customers. And Hubspot is very SMB.

SMB 135

SMB Cloud Enterprise Revenue 135

SaaStr

JANUARY 26, 2020

Aaron Levie and Karen Appelton, his ex-head of partnerships came to the 2018 SaaStrAnnual.com to talk partnerships and one point on “free” deeply resonated with me. If you tighten the “choke” on free, then this quarter, your paid revenue will go up. Some of this is just growth in the Cloud.

Cloud 271

Cloud Revenue Branding Sales 271

Totango

JANUARY 22, 2018

Our world-class speaker lineup for 2018 Customer Success Summit will share the impressive business results that customer success best practices should deliver. Dante is the Manager of Partner & Customer Experience at Google Cloud. Customer Success Summit brings together the best and brightest minds in Customer Success. Dante Otero.

Customer Success 48

Customer Success Sales Recruiting Sales Hiring Scale 48

SaaStr

MAY 10, 2021

Fast forward to today, and we can add an important nuance to that: a second core product not only helps you grow faster at scale (a bigger TAM), but it drives up NRR and more revenue from your existing customers. You can see dramatic cohort growth since 2018: #2 Box. That’s the magic. More on that here.

Merchant Services 171

Merchant Services SaaS Payments SMB Payment Solutions 171

SaaStr

JUNE 5, 2020

It’s hard to imagine a world where analysis didn’t understand recurring, subscription based revenue for technology products. 2004-2010 marked the early days of SaaS where the model was still risky, and cloud providers were competing hard with their on-prem predecessors. . The SKYY First Trust Cloud Computing ETF has grown to $3.3

Venture Capital 213

Venture Capital Technical Review SaaS Scale 213

SaaStr

FEBRUARY 18, 2019

And much faster not just at $100m in ARR, but at $1b in ARR: That’s a wrap for Q4 2018 earnings! 77% y/y growth in Q4 revenue, $1B+ revenue guide for 2019, with a best in class growth rate at scale. The Cloud is just so much bigger than 5 years ago. The Cloud is just so much bigger than 5 years ago. Crazy stuff.

SaaS 100

SaaS Cloud Revenue Scaling 100

Kellblog

MAY 12, 2024

For example, he said, “Netflix’s overall challenge (in 2018) was that it could no longer count on contracting for existing good TV and studio films at reasonable prices.” But those four beliefs drove us from $0 to $1B in revenues. Can’t be done (and “they” were nearly right). Extranet BI?

Strategy 93

Strategy Government Machine Learning Artificial Intelligence 93

Neil Patel

JANUARY 1, 2021

Games as a Service acts as a continuous revenue service for developers, allowing them to break their reliance on the one-time purchase. GaaS games can often be streamed directly from the cloud to a user’s device, which allows them to be accessed from anywhere, anytime. That being said, their profits are tremendous.

Payments 122

Payments Payment Services Payment Methods Payment Solutions 122

SaaStr

DECEMBER 17, 2019

The learning from the top cloud leaders is that every SaaS company that gets to $100m ARR basically gets to $1b ARR. A Step-by-Step Guide to Revenue Growth with Mark Roberge. We are ending the year at all-time highs for SaaS and Cloud. State of the Cloud with Bessemer Venture Partners. pic.twitter.com/iDMbhFEq5f.

Scale 133

Scale SMB Cloud Acquisition 133

Incredo

JUNE 25, 2019

3 Dropbox is a cloud storage provider and helps store and share your files. Dropbox’s annual revenue for 2018 amounted to $1.392 billion (25%+ more than in 2017). #4 SurveyMonkey’s revenue amounted to $254.3 million in 2018. #5 For the first 3 years of operating in the market , Wistia didn’t have a free plan. #3

SaaS 236

SaaS Pricing Software Review Acquisition 236

OPEXEngine

JANUARY 17, 2020

To see how COGs and gross margins are changing, take a look at these charts showing SaaS companies that IPO’ed in 2008 versus 2018. Average COGs in 2008 was 40% of revenue at the time of IPO, and gross margins averaged 60%. Cloud operations / Platform Maintenance. Cloud Operations / Platform Support. Customer support.

Outsourcing Services 53

Outsourcing Services Trends Outsourced Development Technical Review 53

Baremetrics

DECEMBER 7, 2023

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.

Merchant Services 90

Merchant Services Startup DevOps as a Service SaaS 90

CloseSaaS

AUGUST 21, 2019

Twilio is a “cloud communications platform as a service” company based in San Francisco valued in billions. Founded in 2008, Twilio reached $100 million in annual revenue in 2014 and $600-plus million in 2018.

Cloud 52

Cloud Communication Revenue Strategy 52

OPEXEngine

DECEMBER 21, 2021

This chart shows the median and the 75th percentile of enterprise value/forward revenue multiple for the basket of public stocks which were public at that moment in time. Cloud companies’ fast growth multiplied by an appreciation in multiples has pushed valuations higher since 2014. But let’s look at the most recent five years.

SaaS 52

SaaS Cloud Enterprise Software 52

CloseSaaS

JULY 18, 2016

By 2018, the enterprise SaaS market is expected to increase five times over and be worth a whopping $50.8 billion in revenue, representing over a quarter of the entire worldwide enterprise application market. There’s no doubt about it: SaaS is the future of the software industry.

Software 52

Software Cloud SaaS Enterprise 52

OpenView Labs

JANUARY 29, 2020

Editor’s Note: This article was first published on August 9, 2018. Not satisfied with reaching $1 billion in annual revenue, Atlassian furthered its commitment to product led growth by jumping on the freemium bandwagon. Freemium vs. Free Trial: How To Pick the Right SaaS Revenue Model in 2018. Freemium benchmarks.

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82

OPEXEngine

DECEMBER 7, 2021

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.

Subscription 52

Subscription Payment Features Pricing SaaS 52