Remove Acquisition Remove AWS Remove Business Model
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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

AWS, Twilio, Heroku, etc. Adopting a lower price point may increase sales velocity, create lots of demand, and keep sales teams happy, but if the price point doesn’t generate enough gross margin to achieve reasonably quick payback periods, and the business suffers from an increase in churn, the company is in trouble.

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The Top 10 SaaStr Learnings from Mary Meeker’s Latest Report on AI

SaaStr

The Infrastructure Math Is Unprecedented The Capital Intensity Is Off The Charts: Big Six tech CapEx: $212B annually (63% YoY growth) Microsoft AI business: $13B run-rate (175% YoY growth) NVIDIA data center revenue: $39B quarterly (78% YoY growth) Amazon AWS CapEx as % of revenue: 49% (vs. Token Costs Collapsed 99.7%

AI Search 264
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GTM 146: The Future of Search, AI, and Digital Presence with Mike Walrath, CEO of Yext

Sales Hacker

He served as Chairman and CEO of the company until its acquisition by Yahoo! He also served as chairman and CEO of the company until its acquisition by Yahoo in July of At Yahoo, he was responsible for the operations of global advertising marketplaces. Previously, Michael was co-founder and Chairman of Moat Inc. in July 2007.

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That’s a nice little $1-2M SaaS company you have here. Call me to discuss if it will scale!

The Angel VC

At that point it becomes a lot harder because the next set of customer acquisition channels will likely be much more expensive. But it would also lead to the generation of a large number of small-ish but still very viable SaaS businesses, many of which could generate very decent profits for their founders.

Scale 192
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The Sendgrid Journey: Scaling From Growth Stage to $2B Acquisition in 4 Years (Video + Transcript)

SaaStr

In this session, Anna and Sameer will highlight SendGrid’s journey from growth stage through acquisition and why focusing on people and culture is mission critical to success as a company goes through the scaling process. I’m Sameer Dholakia, CEO of now Twilio SendGrid as of Friday after our completed acquisition.

Scale 155
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A Look Back: “SaaS Metrics Masterclass: Key Business Metrics, Pricing Strategies and Billing Models with Stripe’s Head of France and Southern Europe, Guillaume Princen” (Video + Transcript)

SaaStr

Or maybe ARR, depending on your model. Customer Acquisition Cost (CAC). & It wasn’t the case 20 or even 10 years ago, where the business models of the internet were more focused on eCommerce, marketplaces, or even advertising. Customer acquisition. There’s obviously hybrid models. Transcript.

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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 190