Kellblog

OCTOBER 13, 2022

I’m writing this post to help readers who (like me) grew up in an annual subscription SaaS world adapt to the new and increasingly popular world of usage-based pricing [4], including month-to-month contracts and variable fees [5]. And what’s the impact on your other SaaS metrics? What Does Recur Mean? per month.

Metrics 133

Metrics SaaS Payments SaaS Payment Features 133

Tom Tunguz

APRIL 1, 2024

y/y, estimated sales efficiency is 0.11, & contribution margins are negative : Rubrik sells $1 of subscription software for $0.88. It’s a strategic imperative to metamorphose from an on-premises perpetual-license company to a subscription-software company as fast as possible. But overall revenue is growing 4.5%

Data 195

Data Subscription Payment Features Cloud 195

SaaSOptics

FEBRUARY 13, 2022

Getting SaaS Accounting and Financial Operations Right in 2022. 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. And this trend will continue.

Payment Features 105

Payment Features Outsourced Development SaaS Software Review 105

Kellblog

MARCH 29, 2023

Just a quick post to share the slides from the presentation I gave today at the KiwiSaaS conference to discuss the SaaS metrics that matter in 2023 and 2024. This includes an explanation of why I excluded (what I view as old school) churn, lifetime value (LTV) and LTV/CAC analysis from those metrics.

Metrics 123

Metrics Compensation Benchmarks Interviewing 123

SaaStr

OCTOBER 5, 2022

Moving away from a subscription to a consumption-led model can bring several benefits to your business. The consumption-led model enables you to recognize customer revenue based on actual usage versus the subscription contract and associated promise of usage. . “It Be clear on your new metrics. Share the logic behind changes.

VP of Engineering 197

VP of Engineering Scale Scaling Sales Hiring 197

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. and 99.2%, respectively) And below you can see who ended up in the top 10 at the end of 2022 and 2021.

Cloud 189

Cloud Software Review Subscription Payment Features 189

Clouded Judgement

MARCH 10, 2023

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

Cloud 244

Cloud Trends Subscription Payment Features 244

SaaSOptics

FEBRUARY 11, 2022

The accounts receivable aging report summarizes how long invoices have been unpaid based on predefined buckets, often 30 day increments as of the report date. If many customers’ DSO are trending upwards, revisiting credit terms and policies should be in your future (think: interest, late payment fees, or early-payment discounts).

Payment Methods 85

Payment Methods Payment Features Payment Solutions Payment Services 85

SaaSOptics

MARCH 10, 2022

Is your company taking advantage of CFO tools like automated invoicing, database management, and automatic tax-compliance updates? Their software automates tasks like invoicing; keeps track of filing, tax returns, and cash flow; and allows companies to easily see the entire financial picture of their business. Invoicing and ePay Tools.

Payment Services 87

Payment Services SaaS Payments Payments Payment Solutions 87

Intercom, Inc.

NOVEMBER 30, 2021

Here’s an example of key goals and metrics to consider. Subscription payment and management: Stripe. When a customer wants to change or upgrade their subscription plan, they’ll often reach out to your trusted support team. Forget logging into multiple platforms to find payment details or to adjust a customer’s plan.

Technical Review 249

Technical Review Customer Support Payment Methods Payment Solutions 249

Chart Mogul

JUNE 1, 2023

faster than their peers in 2022. So if you are keeping a close eye on your retention metrics this year, you’re not alone. Retention is one of the most important metrics when building a successful SaaS business. faster than their peers in 2022. Companies with best-in-class retention grew at least 1.8x

Retention 90

Retention Metrics Benchmarks SaaS 90

OpenView Labs

JANUARY 13, 2022

This year we look back at 2021 and forward to 2022, measuring how our past predictions have stood up to another tumultuous year and laying out what you can expect in 2022. Science, conscious consumers, and next-gen founders will drive ESG’ innovation in 2022. Join Steven’s research, take a short survey Growth Strategies in 2022.

Pricing 82

Pricing Payment Services SaaS Payments Payment Solutions 82

Clouded Judgement

JANUARY 12, 2024

In 2021 and the first half of 2022 (when most of the 2022 activity happened) we essentially crammed 5 years worth of funding into an 18 month period. I hope this post provides a bit of a cautionary tale of raising a mega round ahead of your metrics. Public market investors felt all the pain in the 2022 down market.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

Clouded Judgement

MARCH 1, 2024

Funds have gotten quite large and haven’t deployed much in 2022 / 2023. Update on Q4 Earnings One metric I love tracking in net new ARR added in a quarter. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Cloud 311

Cloud AI Investment Metrics 311

ChurnZero

JUNE 24, 2022

2022 continues to be a grave reminder that change is constant. In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. What’s really most important is your subscription model. How do you stack up against your peers?

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98

Chart Mogul

DECEMBER 20, 2022

If you thought 2021 was a busy year for product development at ChartMogul, we shifted into hyperdrive for 2022. And if we had to give it a name, we’d call 2022 ‘The Year of the Destination.’ . And if we had to give it a name, we’d call 2022 ‘The Year of the Destination.’ . Try it out. . Nick Franklin , CEO ChartMogul.

Systems Review 52

Systems Review Payment Solutions Payments Azure 52

SaaSOptics

SEPTEMBER 14, 2021

Shape up your Financial Operations Before 2022. Follow these 4 steps to shape up your Financial Operations before 2022. . Your chart of accounts is the foundation upon which all metrics are built upon. Maintaining compliance will give your entire organization confidence in the metrics and numbers your team produces.

Point of Sale 60

Point of Sale Outsourced Development Headcount compliance 60

Valuize Consulting

DECEMBER 21, 2022

2022: A Year Of Unpredictable & Accelerated Evolution. 2022’s impact on the SaaS industry was significant, deeply impactful, and turbulent. Amidst this year of transformative change, what was top of mind for B2B technology leaders in 2022? Customer churn is an unavoidable reality in today’s competitive subscription economy.

Customer Success 52

Customer Success Churn Subscription Payment Features 52

SaaStr

NOVEMBER 2, 2022

While the average Cloud stock has fallen almost 50% in 2022, Duolingo’s has stayed up, and is down just 10% in the past 6 months. The core product is very B2C, but the upgrade to paid has very SMB B2B metrics, and 80% of the revenue is subscription based. So it’s doing what Wall Street wants today.

Scale 298

Scale B2C SMB B2B 298

Clouded Judgement

MAY 19, 2023

For those who don’t, I’m using quarterly subscription revenue x4 to estimate ARR. The chart below shows Q1 ‘23 net new ARR added vs the quarterly average across the 4 quarters in 2022. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

Cloud 161

Cloud Subscription Payment Features Retention 161

Clouded Judgement

DECEMBER 30, 2022

And that’s a wrap for 2022! 2022 Top Performers Below is a table that shows the top 10 share price performers of 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.

Cloud 130

Cloud Subscription Payment Features Pricing 130

Clouded Judgement

JUNE 2, 2023

One of my favorite metrics to look at is net new ARR added in a quarter. It’s a bit of a swag as not all companies report ARR (and where they don’t I’m calculating ARR as quarterly subscription revenue x4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 130

Cloud Trends SMB Subscription 130

ChurnZero

JUNE 24, 2022

2022 continues to be a grave reminder that change is constant. In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. What’s really most important is your subscription model. How do you stack up against your peers?

Benchmarks 52

Benchmarks Retention Software Review Technical Review 52

SaaSOptics

JUNE 4, 2021

7 SaaS Metrics Every SaaS Company Should Care About in 2021. billion by 2022 — which means the key innovations of this business model are about to inspire even more businesses. And with more popularity comes more confusion, especially over what metrics are most important to drive the best results. . And we’re here to help. .

Metrics 53

Metrics SaaS Customer Lifetime Value Payment Features 53

OPEXEngine

FEBRUARY 1, 2022

That’s a 5x growth in six years, and it is estimated to reach $171 billion in 2022, continuing to dominate the cloud services market. A robust recurring billing and revenue management system in place helps you meet these compliance requirements, automating tax management, revenue recognition, and reconciliations.

SaaS Payments 52

SaaS Payments Payment Services Payment Solutions SaaS 52

Clouded Judgement

NOVEMBER 4, 2022

Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA. I think we’ll get a more sudden one once the data is more clear.

Cloud 130

Cloud Pricing Revenue Subscription 130

Clouded Judgement

SEPTEMBER 29, 2023

I do think the economy will start slowing next year, and just like they did in late 2021 / 2022, the Fed can very quickly change their course of action. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Cloud 183

Cloud Government Banking Software Review 183

OPEXEngine

FEBRUARY 9, 2021

billion by 2022 — which means the key innovations of this business model are about to inspire even more businesses. And with more popularity comes more confusion, especially over what metrics are most important to drive the best results. SaaS Metrics #1: Annual Recurring Revenue (ARR). SaaS Metrics #3: Churn Rates.

Metrics 52

Metrics SaaS Payment Features Customer Lifetime Value 52

Frontegg

JANUARY 23, 2022

We sat down with her for an exclusive talk about PLG in 2022 and beyond. While there’s no surefire recipe, you should set a North Star metric across product, engineering and revenue teams will certainly help create a point of reference when it comes to product delivery. What elements of PLG do you feel are neglected or underestimated?

Social Media 52

Social Media Engineering Onboarding Investment 52

Clouded Judgement

SEPTEMBER 22, 2023

As a reminder, in the summer of 2021 they were saying they wouldn’t hike rates through the end of 2022…We all know how quickly that changed when they skyrocketed rates very shortly thereafter. I created this subset to show companies where FCF is a relevant valuation metric. Even a DCF is riddled with long term assumptions.

Cloud 152

Cloud Revenue Software Metrics 152

Clouded Judgement

APRIL 6, 2023

That’s a big difference, especially when you layer in the growth in headcount from 2021 to 2022. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Essentially companies grew headcount significantly to add less ARR.

Cloud 130

Cloud Headcount Subscription Payment Features 130

Clouded Judgement

JANUARY 20, 2023

Had we not gone through 2020-2022 there would still be excess to remove. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 130

Cloud Interviewing Subscription Payment Features 130

Clouded Judgement

NOVEMBER 3, 2023

After all, the real headwinds to software started in the Q3 / Q4 2022 timeline, so by Q3 / Q4 2023 we’d start lapping those tough periods. 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.

Software Review 161

Software Review Cloud Software Azure 161

Clouded Judgement

JANUARY 6, 2023

If we rewind back the clock to the start of 2022 the big debate was rates. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 130

Cloud Azure AWS Underperforming Technical Team 130

Clouded Judgement

SEPTEMBER 30, 2022

Budget growth for 2022 was revised down a full 1% from the prior quarters survey (from 4% to 3% ), demonstrating near term budget pressure. 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 Trends 130

ProfitWell

JANUARY 6, 2020

We are back and feeling better than ever , kicking off what we’re hearing is "the year of subscription growth and iteration." We also have 10 must-have features for subscription billing platforms in 2020. Your top subscription news. 2020: the year of subscription growth and iteration. 10 years, 10 pricing must-haves.

Payments 40

Payments Merchant Services SaaS Payments Payment Methods 40

Clouded Judgement

OCTOBER 27, 2023

Google Cloud did have a huge Q3 in 2022, so the YoY comp for this quarter was a tough one (ie lots of the decel from 28% to 22% was more mathematical, and not quite as bad as the numbers would suggest). I created this subset to show companies where FCF is a relevant valuation metric. Even a DCF is riddled with long term assumptions.

Cost optimization & reporting 152

Cost optimization & reporting Cloud Azure AWS 152