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 194

Data Subscription Payment Features Cloud 194

Subscription Flow

DECEMBER 1, 2023

Recurring revenue models, or subscription models , can be a great way for businesses to generate income while providing customers with the options they want. However, a distinct set of metrics is needed for the subscription business model in order to track and keep an eye on the company’s health.

Subscription 59

Subscription Payment Features Metrics Business 59

Chart Mogul

JUNE 1, 2023

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. So if you are keeping a close eye on your retention metrics this year, you’re not alone. This is your guide to customer retention in 2023.

Retention 90

Retention Metrics Benchmarks SaaS 90

Clouded Judgement

APRIL 19, 2024

Their GAAP revenue grew 5% in 2023, and 29% in Q4 ‘23 YoY. Rubrik’s subscription ARR was $784m at the end of 2023 and growing 47% YoY. For context, full year GAAP revenue in 2023 was $628m. I created this subset to show companies where FCF is a relevant valuation metric. NTM revenue multiple.

Cloud 141

Cloud Scale Subscription Payment Features 141

Blulogix

DECEMBER 18, 2023

Usage Pricing: Turning Consumption into Revenue – A Practical Guide to Transitioning to Consumption Subscription Billing By BluLogix Team In the realm of consumption-based billing, navigating the intricate network of data staging and mediation stands as a pivotal factor in driving efficient billing processes.

Payment Features 52

Payment Features Subscription Pricing Revenue 52

Clouded Judgement

MARCH 8, 2024

The full year guide assumes 14% growth for this upcoming year after they grew 31% in 2023. They did call out a couple one time benefits they saw in 2023 they don’t expect to see in 2024. The other one time benefit from 2023 was ~$40m of multi-year license deals. A year ago, they guided 2023 growth to 16%.

Cloud 161

Cloud Revenue Subscription Payment Features 161

SaaStr

DECEMBER 4, 2023

With the turbulence in the market in 2023, sales cycles have only been getting longer and a lot more complicated. The sales cycle is important because it cascades into a bunch of critical metrics for you and investors, including revenue. Embed different payment types both in invoices and reminders.

SaaS Payments 244

SaaS Payments Payment Services Payments Payment Features 244

Clouded Judgement

MARCH 10, 2023

Growth Deceleration of Consumption Companies So far, 2023 guides have not been pretty for consumption software companies. 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.

Cloud 244

Cloud Trends Subscription Payment Features 244

Clouded Judgement

DECEMBER 29, 2023

Subscribe now 2023 Top Performers In 2023, there were 14 cloud software companies that were up 100%+ this year (in the index I track of ~80 total)! Below you can see the top performers from 2023. I created this subset to show companies where FCF is a relevant valuation metric. Follow along to stay up to date!

Cloud 189

Cloud Software Review Subscription Payment Features 189

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?

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Metrics SaaS Payments SaaS Payment Features 132

Subscription Flow

DECEMBER 15, 2023

The essence of the Subscription Economy lies in its ability to forge lasting relationships between businesses and consumers, transcending traditional transactional models. For instance, subscription businesses observe customer retention rates, customer acquisition, and whatnot.

Subscription 59

Subscription Payment Features Healthcare Technical Review 59

Blulogix

DECEMBER 14, 2023

Demystifying UBP: Models and Metrics – A Deep Dive into Your Pricing Playground By BluLogix Team Welcome, B2B pioneers, to the playground of UBP models and metrics! Subscription Billing 1.  Don’t get lost in a sea of metrics! Fear not, intrepid explorers!  Striking this balance is key.

Pricing 52

Pricing Metrics Subscription Payment Features 52

Chart Mogul

MARCH 23, 2023

And, is your poor retention the reason for your slower growth in 2023? If you’re unsure, check your retention metrics. Gross revenue retention (GRR) and net revenue retention (NRR) are the key metrics to understand how well … How good is your business at retaining customers? What is net revenue retention (NRR)?

Retention 52

Retention Metrics Revenue Scale 52

Blulogix

DECEMBER 7, 2023

B2B Subscriptions in 2024: Embracing a Paradigm Shift with Usage-Based Pricing By BluLogix Team As the clock ticks towards 2024, a seismic shift is brewing in the B2B subscription landscape: the rise of usage-based pricing (UBP). This is not a subscription snooze-fest. Buckle up, B2B leaders.

B2B 52

B2B Subscription Payment Features Pricing 52

Clouded Judgement

FEBRUARY 10, 2023

” Were 2023 Software Estimates Already De-Risked To Start The Year? We’ve seen a number of companies report Q4 ‘22, and then guide for the full year 2023 (first look at 2023 guides, or the companies view on how the year will turn out). They guided 2023 1% above consensus. The primary reason (I think)?

Cloud 268

Cloud Software Review Technical Review Systems Review 268

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

Clouded Judgement

JANUARY 26, 2024

Net new ARR is something I track very closely for all of the private companies I work with, and it’s also an important metric to look at in public companies. Many public software companies don’t report ARR, so I’ll take the quarterly subscription revenue and multiply it by 4 to approximate ARR.

Cloud 161

Cloud Marketplace as a Service AI Subscription 161

Clouded Judgement

JANUARY 12, 2024

There are certainly some deals that happened in 2023 that haven’t announced yet (there’s always a lag), so I’d expect the 2023 bar to be slightly higher once everything has announced. I hope this post provides a bit of a cautionary tale of raising a mega round ahead of your metrics.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

Blulogix

DECEMBER 15, 2023

From revenue loss and delayed invoicing to customer dissatisfaction and compliance risks, inaccuracies or delays within these processes can significantly disrupt business operations. While the idea of usage-based pricing might seem exhilarating, navigating its intricacies can Read More » December 14, 2023 Blog Why Usage-Based Pricing (UBP)?

Data 52

Data Payment Features AI Search B2B 52

Clouded Judgement

APRIL 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., We’re undoubtedly set up for a very interesting 2023.

Cloud 161

Cloud Software Benchmarks Retention 161

Blulogix

NOVEMBER 27, 2023

Reconciling charges against invoices from service providers uncovered not just unquantifiable leakage but also additional billing errors. Moreover, BluIQ’s implementation granted our client a deeper understanding of cost and usage metrics. BluLogix recently encountered such a scenario with one of our MSP clients.

Revenue 59

Revenue Payment Features Management Software Review 59

SaaS Metrics

NOVEMBER 10, 2022

SaaS, On Demand Software or Software as a Service, is a subscription software that allows users to access and use it remotely. The post 5 SaaS Trends We Can Expect in 2023 first appeared on SaaS Metrics. The post 5 SaaS Trends We Can Expect in 2023 first appeared on SaaS Metrics.

Trends 52

Trends SaaS Subscription Payment Features 52

Chargebee

DECEMBER 27, 2023

As we transition into 2024, reflecting on 2023 events marked by rising interest rates, capital market challenges, and evolving customer behaviors, businesses are at a pivotal juncture. The past year’s trials have prompted a hard reset, compelling organizations to reassess their operating models for increased resilience.

Metrics 52

Metrics Acquisition Subscription Payment Features 52

Chargebee

DECEMBER 27, 2023

As we transition into 2024, reflecting on 2023 events marked by rising interest rates, capital market challenges, and evolving customer behaviors, businesses are at a pivotal juncture. The past year’s trials have prompted a hard reset, compelling organizations to reassess their operating models for increased resilience.

Metrics 52

Metrics Acquisition Subscription Payment Features 52

Clouded Judgement

MARCH 24, 2023

The end result was the expected result prior to the banking crisis - a 25bps hike 2023 Full Year Guides We’re nearly through Q4 ‘22 earnings season. The chart below shows 2023 guides vs 2023 consensus estimates to star the year. The chart below shows 2023 guides vs 2023 consensus estimates to star the year.

Cloud 130

Cloud Banking Subscription Payment Features 130

Clouded Judgement

JANUARY 13, 2023

That was more broadly a period of ZIRP, and it’s interesting that today the 10Y isn’t hugely different from where it was in the period of 2010 - 2020 Morgan Stanley CIO Survey Everyone is eagerly awaiting 2023 forecasts to be “de-risked.” growth in 2023 (so not much change in 1 quarter).

Cloud 130

Cloud Forecasting Subscription Payment Features 130

User Pilot

JUNE 2, 2023

Product adoption metrics tell you how well your platform is performing. In this article, we dived into 13 important adoption metrics to measure. Reaching product adoption is critical for subscription-based business models where revenue comes after the initial conversion. Long TTV is one of the major causes of early churn.

Metrics 84

Metrics Customer Lifetime Value Churn Onboarding 84

User Pilot

JULY 27, 2023

KPIs and success metrics to track Income statement (P&L) and Balance Sheet : CEOs don’t need to check these documents on a daily basis, but regular analyses keep them in the loop of the company’s financial position. The company needs a high percentage of this metric to stay competitive.

Sales Hiring 95

Sales Hiring SaaS Payments Sales Recruiting CTO Hire 95

Clouded Judgement

MAY 12, 2023

On a related note - when we look at companies who gave full year 2023 guidance this quarter vs last quarter, on average those companies are not changing their guidance at all (median change in guide is 0%). There are some outliers, but for the universe who’ve reported so far the takeaway is 2023 guides were de-risked.

Cloud 130

Cloud Government Entrepreneurship Subscription 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

JANUARY 5, 2024

If we look at where estimates were in the fall (for year end 2024), vs where they were at the end of 2023, the median company saw their 2024 consensus estimate fall 1%. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Cloud 152

Cloud Trends Subscription Payment Features 152

Clouded Judgement

DECEMBER 23, 2022

As I’ve said many times before, in 2023 the focus for software valuations will completely shift from interest rates (and multiples) to fundamentals. 2023 consensus estimates starting to come down. Wrapping this all up, we’re now starting to see 2023 estimates revised down. Q3 was a tough quarter.

Cloud 130

Cloud Sales Hiring Trends Subscription 130

Clouded Judgement

OCTOBER 13, 2023

growth in 2023. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. I created this subset to show companies where FCF is a relevant valuation metric. consensus and +3.7% YoY in Aug Core CPI 4.1% consensus and +4.3%

Cloud 169

Cloud Artificial Intelligence Subscription Payment Features 169

Clouded Judgement

SEPTEMBER 30, 2022

The expected budget growth for 2023 currently sits at 2.8%. So clearly the early expectations for growth in 2023 are coming in low. Within the broader IT budgets, software did have the highest growth expectations for 2023 at 3.1%. at the far right is the initial expectation for 2023 budget growth. The purple dot at 2.8%

Cloud 130

Cloud Subscription Payment Features Trends 130

Clouded Judgement

JANUARY 27, 2023

Early Look at 2023 Guides Given the Azure weakness reported on Tuesday, all software tumbled Wednesday morning with most names down 5-10%. A big reason for that was the guides for the full year 2023 we saw. We’ll get a lot more data points in the coming weeks on how other companies guide for 2023.

Cloud 141

Cloud Azure Pricing Subscription 141

Clouded Judgement

JANUARY 20, 2023

In it he said “we’re very optimistic about 2023…not a chance for an IT recession in 2023…we’re hiring (when asked about a company like Salesforce who just announced a reduction in force).” ” Overall, he painted a different picture about 2023 than the consensus narrative.

Cloud 130

Cloud Interviewing Subscription Payment Features 130

FastSpring

APRIL 18, 2024

Decreased Cart Abandonment Rates According to a survey of 500 business leaders in the UK and North America, when payments experiences were localized for APAC buyers, cart abandonment was reduced by 32% ! Get more details in our documentation about payment methods. Have a different business use case that you need revenue data for?

Payment Methods 78

Payment Methods Payments SaaS Payments Merchant Services 78