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

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

SaaStr

MARCH 31, 2021

2020: $607m rev. But since the effective NRR is still 145%, ARR-style metrics still work. Even if a lot of the revenue isn’t truly recurring SaaS revenue. 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.

Outsourcing Services 361

Outsourcing Services Outsourced Development Payment Features Cloud 361

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 177

Cloud Software Azure AWS 177

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

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

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

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

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

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

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

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 189

Cloud Software Review Subscription Payment Features 189

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 161

Cloud Azure AWS Software Review 161

SaaStr

MARCH 17, 2020

“Pendo for Startups” gives companies access to the product usage data that today’s investors consider alongside business metrics as they vet deals, as well as sentiment and guidance tools to improve product usage and adoption. Blissfully unveiled their SaaS Trends 2020 report, hitting on a few highlights in the virtual presentation.

Sales Hiring 191

Sales Hiring Scale Payment Features Marketplace as a Service 191

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

OPEXEngine

OCTOBER 10, 2019

The Subscription Show is coming to Boston in a few weeks at the World Trade Center. I’m thrilled to be speaking there about SaaS Metrics and Benchmarks. The show is 100% focused on subscription models, operations, pricing, marketing and subscription-centric technologies, and organized by Subscription Insider.

Payment Features 40

Payment Features Subscription Payment Services Benchmarks 40

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 183

Cloud Government Banking Software Review 183

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 177

Cloud Subscription Payment Features Metrics 177

OPEXEngine

DECEMBER 31, 2020

We also invite other CFOs and thought leaders from the SaaS and Software industry and VC executives to share their content on our blog and provide different perspectives into financial benchmarks and metrics that benefit SaaS and Software companies. Top-Read Blogs of 2020. READ THE POST. READ THE POST. READ THE POST. WATCH THE WEBINAR.

Software Review 52

Software Review Cybersecurity SaaS Benchmarks 52

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 Payments SaaS 128

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 52

Payments Payment Features Subscription Payment Solutions 52

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 177

Cloud Scale Compensation Metrics 177

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 169

Cloud Software Benchmarks Retention 169

ProfitWell

MARCH 24, 2020

2020 is the year of Corona Virus thus far but it’s also the year in which the subscription business model is excelling. Subscription companies have become incredibly popular in the past two decades. Almost everything is sold as a subscription, from socks to razor blades, and of course software.

Subscription 40

Subscription Payment Features Payment Methods Payments 40

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 177

Cloud Software Benchmarks Retention 177

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

Clouded Judgement

JUNE 16, 2023

If we look back over a ~10 year period (excluding 2020-present) the: Median NTM Revenue Multiple was 7.8x If we look back over a ~10 year period (excluding 2020-present) the: Median NTM Revenue Multiple was 7.8x Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 130

Cloud Software Revenue Subscription 130

SaaStr

FEBRUARY 14, 2020

308: RevenueCat is managing tens of millions of dollars in mobile subscriptions and growing 20% a month. Most of us think a lot about standard b2b and Cloud subscriptions, but we’re still new to the issues, challenges and opportunities in mobile subscriptions. This episode is sponsored by Owl Labs. Jaleh Rezaei: .

Scale 185

Scale Sales Hiring B2B Scaling 185

OPEXEngine

JUNE 25, 2020

Back in January, 2020 looked so different. By early 2020, investment in the SaaS industry was at record highs and expected to hit even higher peaks. TechCrunch wrote that VCs were putting an extra $1B into SaaS in 2020, in fewer deals, so more money per company. Fast forward to today, mid-June 2020. In early Feb.,

Benchmarks 52

Benchmarks SaaS Airlines Travel 52

Chart Mogul

DECEMBER 22, 2020

Last week, we dropped a hint in our 2020 roundup , and today we are happy to say it’s official — the ChartMogul iPhone app is live ! Subscription businesses never sleep, you can’t always rely on being close to a desktop computer when you need to look at your up-to-date SaaS metrics. What’s in it?

Metrics 52

Metrics SaaS Subscription Payment Features 52

Chart Mogul

DECEMBER 22, 2020

Last week, we dropped a hint in our 2020 roundup , and today we are happy to say it’s official — the ChartMogul iPhone app is live ! Subscription businesses never sleep, you can’t always rely on being close to a desktop computer when you need to look at your up-to-date SaaS metrics. What’s in it?

Metrics 52

Metrics SaaS Subscription Payment Features 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 161

Software Review Cloud Software Azure 161

SaaStr

MARCH 13, 2020

315: Harry Hurst is the Co-Founder & Co-CEO @ Pipe, the startup that gives you control of your cash flow by giving you access to the full annual value of your monthly subscriptions, upfront. So we can give them a facility within ours that enables them to instantly sell their monthly recurring receivables to us.

SaaS Payments 213

SaaS Payments Payment Methods Finance Payments 213

Clouded Judgement

NOVEMBER 18, 2022

I looked at the period of 2015 - 2020 (right up until Covid, so excluding the Covid bubble) and picked out all of the cloud software companies that at one point in time were trading at >10x NTM revenue. Overall, out of my set of 96 cloud software companies, there were 49 that at one point traded >10x NTM from 2015 - 2020.

Cloud 130

Cloud Pricing Investment Revenue 130

Clouded Judgement

DECEMBER 30, 2022

What’s most interesting is that despite all of the volatility in software over the last year, there have been 5 companies that showed up in the top 10 year end multiples for 2022, 2021 AND 2020. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

Cloud 130

Cloud Subscription Payment Features Pricing 130

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 161

Cloud Software Benchmarks Scale 161

Clouded Judgement

JUNE 23, 2023

Very interesting trend to monitor, and kudos to the Mongo team for sharing this level of detail Quarterly Metrics Trends We’re now through Q1 earnings season. The chart below shows the median YoY growth rate going back to the start of 2020. Let’s start with growth. Revenue multiples are a shorthand valuation framework.

Trends 130

Trends Cloud Retention Subscription 130