Tom Tunguz

SEPTEMBER 21, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. All of the businesses we’ve looked at in the past have been purely SaaS businesses.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

Baremetrics

JULY 21, 2021

As a SaaS or subscription-based company, you want to keep a watchful eye on your monthly recurring revenue and net MRR. MRR as a SaaS metric is pretty straightforward , but there are some nuances that you'll want to take into consideration depending on your business model. Table of Contents. 1 What is MRR Growth Rate?

Benchmarks 98

Benchmarks SaaS Payments Payments Churn 98

OPEXEngine

JUNE 11, 2020

The terms aren’t universally understood, nor are the implications of each on the financial model of a company, so the following is an effort to provide an overview. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. Distribution costs, ie.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

OpenView Labs

JANUARY 29, 2020

Product led businesses need to get their products in the hands of would-be users as efficiently as possible–hopefully at near zero CAC. Not satisfied with reaching $1 billion in annual revenue, Atlassian furthered its commitment to product led growth by jumping on the freemium bandwagon. Is Freemium The Right Business Model?

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82

CustomerSuccessBox

MARCH 25, 2021

Financial Mathematics of a SaaS business model. SaaS business models are different from traditional business models. Unlike the traditional business model, where once the opportunity is marked closed-won, it’s time to celebrate, but when it comes to SaaS, the acquisition is not the end game.

Retention 52

Retention SaaS Payments B2B Business 52

Chart Mogul

JUNE 9, 2023

After analyzing data from over 2,100 SaaS startups to publish the SaaS Benchmarks Report 2023 Sid is full of insights on the topic at hand. Logo acquisition is harder: upselling and retention are crucial. Renewal, payment, happy days. Sid Jain, Senior Analyst at ChartMogul, joins to moderate the discussion.

Trends 52

Trends SaaS Payments Payment Solutions 52

Sales Enablement, SaaS and Growth

JULY 24, 2018

It’s a simple calculation to help you quickly and easily understand the health of a SaaS business. The rule states that a businesses annual revenue growth rate, plus its profit should equal 40%. These metrics immediately give insight into the health and likely success of a SaaS business. Retention trumps acquisition.

SaaS Payments 131

SaaS Payments Sales Hiring Payment Services Business 131

OpenView Labs

JULY 2, 2020

The 2020 SaaS Product Benchmarks Report. After four months of an unprecedented global crisis, SaaS companies are bouncing back while product led growth businesses are trading at almost 2x higher revenue multiples they started with. Don’t leave revenue on the table, drive growth by optimizing your pricing.

Pricing 135

Pricing SaaS Payments Payments SaaS 135

Chargify

OCTOBER 21, 2020

Companies of all types—from startups to long-established global brands—have been able to successfully use subscriptions to facilitate a stream of open-ended, predictable revenue and offer customers the services they want without locking them into inflexible contracts. Provide management with actionable insights to refine operations.

Subscription 63

Subscription Payment Features Payment Services SaaS Payments 63

Baremetrics

JANUARY 24, 2021

The benchmark customer churn for SaaS for SMBs is 5%. We knew if we wanted to keep our business growing, we needed to figure out why so many customers were leaving, and provide the value-add they need to stay. We were looking to relaunch the user-driven, SaaS side of our businesses. At 19.20%, we were dramatically off-base.

Churn 71

Churn SaaS Payments Payment Methods Payment Solutions 71

OPEXEngine

FEBRUARY 22, 2022

Small and Mid-Market (SMM) SaaS Companies serve customers with annual revenues of $1 million to $1 billion and with a typical employee base of 100 to 1,000. Customer success is usually staffed by a mix of customer support, sales, and engineering folks contributing some portion of their time to the Cost of Revenue. Direct Sales.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

How To Buy Saas

DECEMBER 1, 2020

In saas marketing, you generally use online marketing strategies to generate more leads and conversions in your saas business. In all cases, it will always be an online business model hence digital marketing is considered to be the best saas marketing strategy. Setup Pricing model and payment gateways.

Growth Hacking 105

Growth Hacking Payment Methods SaaS Payments Payment Solutions 105

ProfitWell

DECEMBER 9, 2019

From the rise of SaaS to the sudden glut of subscription boxes, the subscription business model has never been more popular. Once you’ve put in the time to do your research, it will be much easier to formulate concrete and attainable goals for your subscription business. Determine your business goals.

SaaS Payments 61

SaaS Payments Payment Services Subscription Payment Features 61

Baremetrics

MAY 7, 2019

Company C was funded by pre-orders from customers, a friends and family round, and then through revenue-based financing for a period of time. After seriously considering an acquisition offer, Wistia decided to take on $17.3M Dictionaries and founders alike can’t agree on the definition of what it means to bootstrap a business.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

Baremetrics

APRIL 6, 2021

Benefits of Subscription Marketing Subscriptions offer your business a unique opportunity to build a steady stream of recurring revenue and a solid base of loyal customers. If you’re curious about how your churn stacks up with similar companies, our Open Benchmarks show you average churn rates based on average revenue per user.

Subscription 59

Subscription Payment Features Marketing SaaS Payments 59

ProfitWell

OCTOBER 16, 2019

Some companies report revenue churn, others only share customer or user churn numbers, and often there’s no distinction between whether churn numbers are annual or monthly. I mean, just take a look at all these different surveys: A 2018 KBCM Technology Group survey reported a median annual revenue churn rate of 13.2% Image via Recurly.

Churn 55

Churn SaaS Payments Payments Payment Methods 55

OPEXEngine

JULY 28, 2020

Since 2008, its revenue has tripled and its stock price has soared 14-fold in response. That has helped insurgents like Zalando, the European e-commerce platform based in Berlin, and Paytm, the Indian e-commerce payment system, scale an innovative idea rapidly, allowing them to challenge incumbents and disrupt entire industries.

Payment Solutions 52

Payment Solutions Strategy Payment Services Scale 52

Baremetrics

NOVEMBER 10, 2019

This model allowed me to work with dozens of SaaS startups using spreadsheets, while we built our financial modeling software Flightpath. Although SaaS companies share many features across their business models, there is enough variation that requires differentiation in the financial model. Operating Model.

Deferred Revenue 111

Deferred Revenue SaaS Payments Sales Hiring Payment Services 111

FastSpring

AUGUST 11, 2020

The way we purchase products is changing—and so are our business models. When it comes to software and online purchases, those transactions are increasingly moving to a subscription-based model, where customers put their purchases on autopilot so they can have continuous access to SaaS products. What is subscription revenue?

Payment Features 85

Payment Features Payments Payment Methods Subscription 85

User Pilot

NOVEMBER 28, 2023

Customer acquisition cost. The total revenue a company can expect from a single customer over the course of their relationship. Monthly and annual recurring revenue. The consistent and predictable revenue a company can expect to receive over a period of time, either monthly (MRR) or annual (ARR). Customer churn rate.

SaaS Payments 88

SaaS Payments Metrics Customer Lifetime Value Marketing 88