SaaStr

AUGUST 18, 2022

So there were a lot of SPACs in the peak of the 2020/2021 Boom … and then they stopped when the boom end. Finally a SaaS company (at least sort of) with almost 50% of its revenue from subscriptions. But after year of working at it, Getty Images now gets almost half of its revenue from subscriptions. #2. of revenue. #4.

Payment Features 58

Payment Features Subscription Revenue Scaling 58

Chart Mogul

SEPTEMBER 17, 2020

Monthly recurring revenue is one of the least exciting topics to take on in 2020. Twitter hive, at @ChartMogul we’ve set out to write the MRR guide for 2020 — something that goes beyond the “How to calculate MRR” that you’re so tired of. — Ilia Markov (@nochainmarkov) August 27, 2020. It is simple (to calculate).

Payments 145

Payments Revenue Payment Features SaaS Payments 145

SaaStr

SEPTEMBER 22, 2021

IPO behind them, we can take a look behind its metrics. The company exploded from 3,000 restaurant locations in 2016 to 40,000 in 2020. Mediocre margins in payments. Fintech is hot, and adding payments to a SaaS solution has turbocharged Shopify, Bill, Wix … and Toast. Now with a $30B (!) And a few bonus notes: #6.

Payment Methods 325

Payment Methods Payment Solutions Payments Cloud 325

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). . It’s hard to imagine a world where analysis didn’t understand recurring, subscription based revenue for technology products.

Venture Capital 292

Venture Capital Technical Review SaaS Scale 292

Baremetrics

NOVEMBER 4, 2020

Fast forward to today when most software companies use a Subscription as a service (SaaS business model , and things aren’t as simple. You have to deal with recurring payments, multiple pricing plans, annual vs monthly payments, add-ons, variable payments and the list goes on. SaaS analytics tools fill that gap.

Payment Solutions 105

Payment Solutions Merchant Services Systems Review SaaS Payments 105

SaaStr

NOVEMBER 26, 2024

He personally emailed every customer who canceled their Zoom subscription to understand their issues. He emphasizes happiness – both for employees and customers – as a key metric of success. However, he remained convinced that existing solutions weren’t meeting user needs effectively.

VP of Engineering 261

VP of Engineering Company Culture Software Engineering Engineering 261

Chart Mogul

MARCH 30, 2020

So you're building an awesome subscription business — great! Billing is the lifeline of your subscription business. Subscription management platform (optional). A subscription management platform can effectively drive a lot of the pricing model of your product – before we even get to the payment transaction.

Payment Solutions 90

Payment Solutions Merchant Services Payment Features SaaS Payments 90

Baremetrics

OCTOBER 21, 2021

Challenge: UXPin needed a tool to consolidate their subscription data and track metrics. Right away, its toolkit replaced their in-house solution and made it easy to track metrics and segment customers. UXPin offers four subscription levels to suit the design needs of companies ranging from startups to large enterprises.

Payment Services 98

Payment Services SaaS Payments Payments Metrics 98

Clouded Judgement

SEPTEMBER 13, 2024

One metric I like to examine is how much companies adjust their full-year guidance. In the past (2015 - 2020), companies would typically beat a quarter by 3-4% and raise guidance for the next quarter by about 2%. I created this subset to show companies where FCF is a relevant valuation metric. the guidance) changes.

Cloud 252

Cloud Forecasting Metrics Payment Features 252

SaaSOptics

JANUARY 9, 2020

One person to manage expense reports, commissions, billing and invoicing, cap tables, revenue recognition, deferred revenue and more. Here are our Top 5 FinTech solutions to have in 2020: 1. Subscription Management ( SaaSOptics ) . Offering complete subscription management for your B2B SaaS business.

Payment Features 77

Payment Features Deferred Revenue Scale Finance 77

Chart Mogul

OCTOBER 17, 2024

But as we grew, especially with the introduction of manual invoicing, it became nearly impossible to keep track of our performance.” Even then, the team often felt unsure if they were calculating metrics correctly. Every time investors or senior stakeholders requested performance data, it took days or even weeks to provide answers.

Payment Solutions 52

Payment Solutions Payment Methods Payment Features Payments 52

Clouded Judgement

SEPTEMBER 29, 2023

As a reminder - the average software multiple from 2010-2020 was ~7.8x, and the average 10Y over that same period was ~2.3%. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. The current median multiple is ~5.7x.

Cloud 190

Cloud Government Banking Software Review 190

Clouded Judgement

DECEMBER 29, 2023

If we rewind the clock back a few years and look at the year end top 10 for 2020, 2021, 2022 and now 2023, there are 4 companies that find themselves on every year end list: Snowflake, Cloudflare, Datadog, and Zscaler. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 196

Cloud Software Review Payment Features Subscription 196

ProfitWell

MARCH 24, 2020

The subscription model is booming. Almost everything is sold as a subscription, from socks to razor blades, and of course software. Without further ado, let's look at nine subscription-based companies absolutely nailing it in 2020. What is a subscription company? So why the subscription business model?

Subscription 72

Subscription Payment Features Payment Methods Payments 72

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS Metric #1 – Annual Recurring Revenue (ARR).

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

SaaSOptics

FEBRUARY 3, 2022

Monthly Recurring Revenue (MRR) is one of many ways to measure your predictable revenue stream. Its primary purpose is to permit performance reporting across dissimilar subscription terms (e.g. The contract starts on May 1, 2020 and ends on April 30, 2021. How much Monthly Recurring Revenue was added and when?

Subscription 86

Subscription Payment Features Business Systems Review 86

Sales Hacker

FEBRUARY 7, 2025

Value Alignment: Pricing starts to align with the value customers perceive, often measured in metrics such as usage, number of seats, or specific features. Between 2014 and 2020, Zoom rapidly expanded its product portfolio, adding features like Zoom Rooms, Zoom Phone, and multiple add-on packages.

Pricing 106

Pricing Scale SaaS Technical Review 106

Baremetrics

MARCH 30, 2021

Here's a list of six payment processing platforms for 2021. Baremetrics provides you with valuable insights that power your business, such as retention rate , recurring revenue , churn rate, and other metrics. 1 Different B2B Payment Processing Tools 1. Learn more: 7 Best SaaS Billing Systems 2020 2. QuickBooks 3.

Payment Services 80

Payment Services SaaS Payments Merchant Services Payments 80

Chart Mogul

MARCH 4, 2020

Extracting value from revenue data is a vital element in running a successful subscription business. Today, we’re excited to share the next step in the evolution of ChartMogul by launching the world’s first Subscription Data Platform. Introducing the ChartMogul Subscription Data Platform. What is a subscription data platform?

Payments 72

Payments Payment Features Subscription Payment Solutions 72

Clouded Judgement

OCTOBER 20, 2023

For context on a 10Y at 5% - from 2010 to 2020 the 10Y averaged roughly ~2.5%. Said another way, the 10Y today is double what it averaged from 2010 to 2020. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Cloud 167

Cloud Azure AWS Software Review 167

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 184

Cloud Software Azure AWS 184

Clouded Judgement

DECEMBER 22, 2023

The median projected growth rate today is 14% The piece left out of the analysis is interest rates, which are obviously higher today than the period of 2010 to 2020. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Cloud 184

Cloud Payment Features Subscription Metrics 184

Chart Mogul

JULY 2, 2021

When I hear ARR: (note ARR = "Annual Recurring Revenue") pic.twitter.com/etalzXy87g — Chetan Puttagunta (@chetanp) June 19, 2020. Annual Recurring Revenue — David Ulevitch ???? What is Annual Recurring Revenue? No, the A in ARR does not stand for ‘anticipated.’ davidu) April 28, 2021.

Payment Features 133

Payment Features Subscription Metrics Churn 133

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This was consistent in 2020 and 2021. net retention and CAC payback).

Cloud 176

Cloud Software Benchmarks Retention 176

Clouded Judgement

MAY 3, 2024

This is lower than Q1 2020 (right at the onset of Covid) when everyone seemed to guide lower given the unknowns of Covid. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Revenue multiples are a shorthand valuation framework.

Cost optimization & reporting 190

Cost optimization & reporting Cloud Software AWS 190

Point Nine Land

JUNE 18, 2023

Simply looking at revenue growth or a usage metric over time doesn’t tell you much about your ability to retain users and turn them into happy long-term customers. If you’re acquiring a lot of new customers quickly, metrics like “usage from repeat users” or “payments from repeat customers” may go up nicely, even if your retention rate sucks.

SaaS Payments 128

SaaS Payments Payment Services SaaS Payments 128

Clouded Judgement

OCTOBER 3, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 167

Cloud Software Benchmarks Retention 167

Clouded Judgement

JANUARY 19, 2024

” If we look historically at the period from 2015-2020 (ignoring 2021 IPOs) the rough medians were ~$200m ARR (minimum was $100m ARR), 50% YoY growth, and >120% net retention. However, it’s not free, and public market investors will typically place a lot more scrutiny on this metric than private investors do.

Cloud 184

Cloud Scale Compensation Metrics 184

OPEXEngine

MAY 3, 2022

This SaaS metric is defined as the sum of Deferred Revenue and Backlog. Deferred Revenue for SaaS companies is the contractual obligation to deliver the SaaS product for the period invoiced. Public companies report this metric in their filings, but the use of the RPO as a key performance indicator is sporadic.

Deferred Revenue 59

Deferred Revenue Metrics SaaS Payments Payment Features 59

SaaSOptics

FEBRUARY 13, 2022

According to Gartner, the SaaS industry is projected to grow to a staggering $121B in 2021, a 15% increase from 2020. Based on a 2019 survey, Gartner forecasts that eighty-four percent of new software will be delivered as SaaS , and this percentage is expected to increase as existing providers transition to a subscription-based model.

Payment Features 105

Payment Features Outsourced Development SaaS Software Review 105

Chart Mogul

FEBRUARY 11, 2020

The lasting effect of customer onboarding will surface as either rising monthly recurring revenue or rising churn. Therefore, it’s critical to monitor onboarding metrics that signal whether a user is succeeding or sinking. 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

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 184

Cloud Software Benchmarks Retention 184

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 167

Cloud Software Benchmarks Scale 167

Chart Mogul

MARCH 30, 2020

So you're building an awesome subscription business — great! Billing is the lifeline of your subscription business. Subscription management platform (optional). A subscription management platform can effectively drive a lot of the pricing model of your product – before we even get to the payment transaction.

Payment Solutions 52

Payment Solutions Merchant Services Payment Features SaaS Payments 52

BrightBack

OCTOBER 14, 2020

This year has been a wild ride for everyone, and at Brightback, we’ve had a front seat to the immense change the subscription industry has experienced. These unusual environmental factors has revealed true winners and losers in the subscription space. They started out by testing a portion of traffic before expanding to all platforms.

Retention 52

Retention Subscription Payment Features Churn 52

Clouded Judgement

NOVEMBER 3, 2023

This growth adjusted premium also comes at a time when the 10Y is nearly double what it was from 2010 to 2020. So if you’re not valued like a growth stock you get valued more like a value stock - and the valuation metrics there look more like FCF or PE multiples. So what’s holding up software stocks valuations??

Software Review 167

Software Review Cloud Software Azure 167

SaaStr

APRIL 2, 2019

Join us for SaaStr Annual 2020. ” Small businesses have a whole set of bills they need to pay, they’ve got invoices they’re expecting in from customers, some of those invoices are late, and they’re trying to basically pull together this like Tetris map of cash flow. FULL TRANSCRIPT BELOW.

Scale 244

Scale Sales Hiring Scaling Strategy 244