Tom Tunguz

MAY 10, 2020

We can plug in last year’s numbers in the table linked here to get an approximation for the value of the S&P 500 on Dec 31, 2019, of 3224, and this implies an S&P dividend growth rate of 5.8%. The S&P500 levels in April suggest that the market believes dividends will grow at 4.0%, down 30%. But a lot has happened since then.

Marketing 315

Marketing Investment Pricing Revenue 315

SaaStr

AUGUST 30, 2021

And that number has gone up from 78% in 2019 to 84% today. 62% annual is up from 54% in 2019, so a big push there. A steady march above $5k in ACV. While only 25% of Freshworks’ customers pay more than $5k a year, they represent 84% of total ARR. Freshworks hasn’t gone super-enterprise. And a few bonus learnings: #6.

Scale 336

Scale SMB Scaling Subscription 336

Tom Tunguz

OCTOBER 18, 2020

Starting in 2019 and continuing in 2020, the public markets value these companies with better multiples. Let’s excise this group of 50% growers from the rest and add Redpoint internal data for forward ARR multiples for later-stage companies, which are all growing above 50%. This is a critical shift.

Software Review 363

Software Review Finance Enterprise Acquisition 363

SaaStr

MARCH 31, 2021

2019: $336m rev. 89 $1m+ ACV customers — up from 21 in 2019. 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. 2014: $500k rev. seed round. 2015: $1m rev. 2016: $3.5m 2017: $30m rev. 2018: $155m rev. 2020: $607m rev.

Outsourcing Services 357

Outsourcing Services Outsourced Development Payment Features Cloud 357

Tom Tunguz

JULY 25, 2021

Early stage debt origination and round counts peaked in 2019, while later stage debt has increased quite nearly every year. However, equity dollars are replacing those debt dollars in the last 18 months in the early stage. Meanwhile, venture debt dollars have migrated to later stages.

Finance 338

Finance Startup Acquisition SaaS 338

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. Correction Year. These corrections reduced valuations by between 30% and 60%. These undulations are short-lived.

SaaS 350

SaaS Cloud Enterprise Software 350

SaaStr

MAY 1, 2023

2019: $336m rev 2020: $607m rev One of the fastest-growing SaaS companies ever — Jon Ma (@jonbma) March 27, 2021 Daniel Dines Co-Founder and Co-CEO – UiPath Daniel Dines is the co-founder and Co-CEO of UiPath, a leading provider of enterprise automation software. seed round 2015: $1m rev. 2016: $3.5m rev 2017: $30m rev.

Company Culture 239

Company Culture AI Innovation Enterprise 239

SaaStr

AUGUST 25, 2021

Twilio’s NRR since 2019. Pretty consistent. A question so many of us had in the earlier days of SaaS was … will we max out all our bigger customers? We all saw especially larger customers buying more and more each year, but most of us founders a generation or so ago in SaaS worried we’d max out our larger accounts.

Scaling 333

Scaling Investment Cloud Customer Success 333

Tom Tunguz

NOVEMBER 19, 2020

Through Q3 2020, late stage investors have invested as much as the entirety of 2019, and should things continue linearly we should expect the final tally to exceed $100B. And it would be 4x the size of 2010. The late stage venture market is on pace to set a record in 2020.

Venture Capital 352

Venture Capital Government Pricing Investment 352

Tom Tunguz

APRIL 7, 2021

The majority of that fall occured before Covid in 2019. How did sales efficiency evolve? Across public software companies, the average sales efficiency fell from 0.6 over the last 3 years. In contrast, sales efficiency improved throughout 2020. Examining the data by quartiles, the sales efficiency has remained largely unchanged.

Software 301

Software Travel Sales Metrics 301

Tom Tunguz

JANUARY 7, 2020

Investors deployed $117 billion in 2019 up from $106 billion in 2018. However, Q4 2019 saw meaningful dip from Q3, but it's too early to say whether it's an aberration, or the beginning of a longer-term trend. Softbank's turbulent 2019 was one of the key topics of the year. This market has grown 20% over the last five years.

Marketing 231

Marketing Finance Investment Trends 231

SaaStr

MARCH 11, 2022

And so, Cloud multiples have rationally fallen back to where they were in 2018 and 2019. The argument here is multiples have fallen too far, since the best SaaS and Cloud companies are growing so, so much faster than in 2018 and 2019. Multiples exploded when we all lived in the Cloud, quarantined in whole or in part in the Cloud.

Scale 253

Scale SaaS Cloud Pricing 253

Tom Tunguz

APRIL 29, 2019

Slack generated $105m in revenue in 2017, $221m in 2018 and $401m in 2019. Slack grew 110% and 82% in 2018 and 2019, compared to Zoom’s 149% and 118%. Slack’s combination of greater revenue and a smaller ACV translates into a much larger customer base: 88k customers in 2019 vs 51k for Zoom.

Benchmarks 261

Benchmarks Metrics Scale Revenue 261

SaaStr

DECEMBER 11, 2024

Durable 36% Compounded Growth In 2019, Doximity was doing $86m ARR. 116% NRR Overall, 124% From Top Customers Doximity can only add so many more physicians to its network, with 80% share. But it can sell more to those that want to reach them. It now sells 3 products, leading to 126% NRR from its top customers. #5.

Business Model 226

Business Model SaaS Revenue Marketing 226

SaaStr

JUNE 24, 2021

Sprout Social IPO’d somewhat quietly at the end of 2019 at about an $815m market cap — small for a SaaS IPO. If that growth from a $815m market cap in 2019 to $4.7B So one of the quieter SaaS success stories in Sprout Social, a leader in social media management. But they kept at it. Billion (!)

Social Media 264

Social Media SMB Cloud Scale 264

SaaStr

OCTOBER 30, 2024

Yet, its $36k+ ARR customers are now 28% of its base, up from 15% in 2019. $36K+ Deals Also Increased to 28% of the Base Shopify has seen something somewhat similar, as both have gone upmarket, growth in SMB and smaller customers have still kept up. At HubSpot, it has more and more smaller customers as part of its Starter plan.

SMB 247

SMB CTO Onboarding Scale 247

SaaStr

MAY 6, 2022

Draw a straight line and assume multiples gradually expand at the same rate as they were growing from 2017-2019. That revenue multiples should rise from where they were in 2019. SaaS companies are better and growing faster than ever before. So just ignore the Covid Boost and Hangover. This does make a lot of sense.

SaaS 319

SaaS Azure Cloud AWS 319

SaaStr

JULY 15, 2021

In comparison, approximately 3,000,000 sqft leased in all of 2020 and over 6,000,000 sqft leased in all of 2019.” ” So that’s not back to the 6m sq ft of 2019, it’s a lot more back than you might think. #3. . “In 2021, leasing activity totals 2,800,00 sqft so far this year. This is interesting to see. .

Scale 249

Scale Cloud Startup Trends 249

The Daily Egg

MARCH 22, 2019

In 2019, wherever you look, you will find its traces. The time when project management was considered a discipline that applies to just a few industries is gone.

Management 258

Management Trends User Experience Marketing 258

SaaStr

MAY 19, 2021

They focus on customers with 10 seats or more, which have grown from 53% of revenue in 2019 to 65% today. For Monday, this was around $30M ARR when they added a sales and CS team in addition to their self-service business. At $240m in ARR, there are now 365 employees in sales and success. And importantly, it worked.

Scale 359

Scale SMB Government Enterprise 359

Tom Tunguz

MARCH 28, 2020

As for marketing to people in front of computers all day, the webinar is the new meetup, conference, whitepaper, online ad, or any other campaign that one might have run in 2019. ZDNet reported demand for Azure is up 775%. These charts show our working patterns have morphed radically in just a few weeks.

Trends 308

Trends Azure Software Review Content Marketing 308

SaaStr

DECEMBER 9, 2020

The old sales playbooks of 2009 and even 2019 may not work as well in 2021. Given that, realize if your outbound sales team isn’t performing at all, maybe it’s not your app, or the competition, or the market, or that there are too many vendors in the space. It’s their approach.

Sales Hiring 356

Sales Hiring Outbound Sales Team AWS Engineering 356

Tom Tunguz

APRIL 28, 2024

X 2019 23.4% - 2020 61.1% It’s no surprise that in those years, the biggest acquisitions accounted for more than 53% of dollars on average. Year Share Good Year 2012 18.4% - 2013 25.9% - 2014 65.5% X 2015 20.1% - 2016 43.0% X 2021 43.8%

Acquisition 264

Acquisition Startup Venture Capital Software 264

The Daily Egg

DECEMBER 22, 2019

Editor’s Note: This will be our last post of 2019! We’ll be taking a brief posting hiatus until the second week of January. The post CRO Made Easy: How to Improve Your Content appeared first on The Daily Egg.

Engagement 50

Engagement Sales 50

Tom Tunguz

OCTOBER 12, 2022

R^2, meaning yield changes explain about half of the forward multiple’s movement since 2019. The Federal Reserve Bank raising rates has been a strong depressor of valuations. The rates on the 10 year bond correlate at -0.49 With the Fed seems intent on raising rates further, how low could forward multiples fall? 10 Year Rate.

Banking 273

Banking Enterprise Software Revenue 273

Tom Tunguz

MAY 10, 2020

We can plug in last year’s numbers in the table linked here to get an approximation for the value of the S&P 500 on Dec 31, 2019, of 3224, and this implies an S&P dividend growth rate of 5.8%. The S&P500 levels in April suggest that the market believes dividends will grow at 4.0%, down 30%. But a lot has happened since then.

Marketing 249

Marketing Investment Pricing Revenue 249

The Daily Egg

NOVEMBER 6, 2019

Editor’s Note: We want to focus on giving you actionable advice for what you can pay attention to, evaluate, and implement quickly to make sure you get the most out of Q4 and the remainder of 2019. Building on the video from our post on our session from the A/B Testing Summit, we wanted to […].

245

245

Tom Tunguz

SEPTEMBER 1, 2021

The company spent $47m in 2019 on sales and marketing, and $52m in 2020, an increase of $3m or 6%, while growing revenues 49%. Amplitude offers three key products: analytics for measuring user behavior, experiment for testing new user flows, and recommendation which optimizes content for different user segments. Revenue, $M. Gross Margin.

Metrics 239

Metrics Benchmarks PayPal Enterprise 239

Tom Tunguz

MARCH 28, 2021

in the same three year span, with a 3x jump between 2019 and 2020. Though it may seem that the growth was simply executing a constant gameplan, the underlying data suggests a significant shift in strategy. UIPath’s average annual contract value (ACV) grew from $17.9k

Payment Services 359

Payment Services Metrics Payment Solutions Payments 359

SaaStr

JUNE 1, 2022

Blame “the economy” too much, and you’re doing yourself a disservice. It’s not slowing down Salesforce, Snowflake, or almost any other SaaS or Cloud leader. Salesforce Growth: 2023 $31.8B (guidance) 2022 $26.5B 2021 $21.25B 2020 $17.1B 2014 $4.1B. Thank you Ohana! pic.twitter.com/CMhrBXgHSF. — Marc Benioff (@Benioff) May 31, 2022.

Sales Hiring 300

Sales Hiring Acquisition Cloud Enterprise 300