article thumbnail

The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Price low to minimize adoption friction, grow quickly, and then move up-market after developing broad adoption. Skimming is less common in the software world because few startups develop a product at launch that will be accepted by the most sophisticated customers (and those willing to pay prices that generate the greatest margin).

article thumbnail

5 Interesting Learnings from UiPath at $600,000,000 in ARR

SaaStr

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. 2005: Started as a tech outsourcing company. 2020: $607m rev. 2014: $500k rev. seed round. 2016: $3.5m

Insiders

Sign Up for our Newsletter

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

article thumbnail

GitLab S-1 Analysis: How 7 Key Metrics Stack Up

Tom Tunguz

GitLab is the third fastest growing software company at IPO, registering 87% revenue growth in 2020, while charting 88% gross margins. implies a 17 month payback period with a contract size of $55k, but the S-1 suggests the enterprise part of the business has been an important focal point. Revenue, $M. Revenue Growth. -. Gross Margin.

Metrics 315
article thumbnail

Asana S-1 Analysis - Comparing One Productivity Powerhouse to Another

Tom Tunguz

Today, the company is a massively successful SaaS business and another example of the flywheel business model that creates demand at the individual user and leverages that interest to sell department and company-wide contracts. Asana records a contract size advantage of about 44%, with an ACV of $2165. Let me know which you prefer.

article thumbnail

5 Interesting Learnings from GitLab at $250,000,000 in ARR

SaaStr

And the engine really never stopped running, evolving into a dominant DevOps Platform for software development. We’re getting used to seeing these super-high NRR numbers from the top developer-focused leaders, in many cases because utility pricing often encourages it (see also Datadog, Twilio, etc). 5 Interesting Learnings: #1.

article thumbnail

9 Easy Sales Concepts So Many Get Wrong with Sam Blond, Former CRO Brex

SaaStr

1: Don’t Outsource Recruiting Founders and sales leaders often ask Sam, “Which external recruiting firm do you recommend for sourcing and hiring sales leaders, AEs, or whatever the hire-of-the-day is?” So much effort goes into developing a product for a new product launch. They were everywhere on social that day.

article thumbnail

5 Interesting Learnings from Amplitude at $150,000,000 in ARR

SaaStr

From 41% in 2020 to 51% in 2021! Use overages to renegotiate contracts, not charge per event. Strong, but not at crazy levels of some developer apps. This is the sort of organic upmarket path you see with a lot of leaders who don’t go 100% “all in” on enterprise but aggressively support it: #2. This is rare.

Scale 307