OPEXEngine

MAY 18, 2021

SaaS Metric #1 – Annual Recurring Revenue (ARR). ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. ARR = (Overall subscription per year + recurring revenue from add-ons or upgrades) – revenue lost from cancellations.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

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

OPEXEngine

JUNE 11, 2020

At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. SaaS companies have to focus both on new customer acquisition as well as retaining and delighting customers throughout the customer relationship. These terms affect revenue recognition.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

Baremetrics

NOVEMBER 2, 2021

To get the most out of the time and money invested into their apps, Shopify App Developers need to track the core metrics of their industry. What is a business metric? Why you need to track business metrics for Shopify App Developers 10 business metrics for Shopify App Developers 1. Table of Contents. What is Baremetrics?

Payment Solutions 98

Payment Solutions Outsourced Development Underperforming Technical Team Metrics 98

Baremetrics

SEPTEMBER 15, 2021

For example, you need to calculate the growth rates for monthly recurring revenue (MRR), active customers, average revenue per user (ARPU), and more. Growth rates in population Growth rates in personal financial savings Growth rates in business What is the Growth Rate Formula? Is the amount of revenue increasing?

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

BrightBack

JUNE 30, 2020

Brightback was founded in 2018 with the belief that the growth funnel would soon flip with subscriber retention—not acquisition—being the most important lever for driving revenue growth. At the beginning of 2020, 93% of subscription leaders said that retention would be as or more important than acquisition this year.

Payments 52

Payments Management Payment Methods SaaS Payments 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

OPEXEngine

MARCH 10, 2020

Gross margin is a metric that measures your profits as a share of revenue. A higher gross margin or gross margin rate means that you have a highly profitable business. Gross Margin = Revenue – Cost of Goods Sold (COGS). Typically, gross margin is quoted as a percentage of revenue. Gross Margin Benchmark.

Payment Methods 59

Payment Methods Scale Benchmarks Payments 59

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.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

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

OPEXEngine

NOVEMBER 9, 2021

The contracts are identical twelve-month contracts except for the payment terms. Contract B relaxes payment terms to monthly payment, 12 monthly installments for the next year. All of the sales and marketing dollars invested to obtain persuade the buyer to put digital ink to pdf have been recouped immediately.

Sales Hiring 52

Sales Hiring Scale Payments SaaS Payments 52

CustomerSuccessBox

MARCH 25, 2021

They’ve moved down your marketing and sales funnel and have finally invested in your software. . 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. What’s next? Will you let them be on their own?

Retention 52

Retention SaaS Payments B2B Business 52

SaaSX

FEBRUARY 28, 2021

In the simplest terms, capital efficiency means growing profitably , without overinvesting to land customers and drive revenue. For example, a 1:1 capital efficiency ratio means you’re earning one dollar for every dollar you invest into company growth. Revenue per Employee. That’s a revenue treadmill.

Payment Solutions 52

Payment Solutions Software Review Software Payments 52

OPEXEngine

AUGUST 9, 2022

By benchmarking critical go-to-market KPIs, like the Magic Number – which measures how many new dollars of revenue growth are obtained getting from your sales and marketing investment compared to your competitors. One industrial company, for instance, makes account assignments in a cloud-based sales planning platform.

Scale 59

Scale VP of Engineering Payment Services Underperforming Technical Team 59

OPEXEngine

JANUARY 14, 2020

Price/Revenue Ratio. Source: SEC filings – weighted average by company revenue. Many factors drive the high-growth of SaaS companies, including higher market adoption of SaaS and the structural advantages of the recurring subscription revenue model – see Why SaaS Companies Grow Faster. Deferred Revenue = Deferred Profits.

SaaS Payments 59

SaaS Payments SaaS Scale Customer Lifetime Value 59

OPEXEngine

JULY 28, 2020

Creative software is still Adobe’s core, but the company is now a leader in market analytics and web development technology, and it is currently investing in artificial intelligence and machine learning. Since 2008, its revenue has tripled and its stock price has soared 14-fold in response. It also involves adopting a new mindset.

Payment Solutions 52

Payment Solutions Strategy Payment Services Scale 52

OPEXEngine

OCTOBER 23, 2020

Weaker demand, slower sales cycles, and customer insistence on pricing concessions and payment deferrals have conspired to cloud the outlook for many tech companies’ growth. For certain businesses, COVID-19’s impact on revenue was immediate. Forecasting Growth in a Pandemic: A Difficult Job Just Got Harder.

Technical Review 52

Technical Review Scale Payment Services Marketing 52

ChurnZero

JUNE 19, 2020

It is no secret that customer churn hits recurring revenue businesses hard, but what’s its real impact on their long-term health and valuation? What data you need to get the investment in your Customer Success team. This is also annual payments only. The compounding effects that churn has on your bottom-line.

SaaS Payments 72

SaaS Payments Retention Metrics Payment Solutions 72

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

ProfitWell

MARCH 12, 2020

But since there are so many to choose from—we’re talking Nuuly, Haverdash, Stitch Fix, the list goes on—RTR is looking to a new membership option to convince shoppers to get on board with its platform over others. You can find the full data breakdown and benchmarks linked here if you're interested in digging a bit deeper. Not exactly.

SaaS Payments 52

SaaS Payments Payment Services Payments Venture Capital 52

OPEXEngine

JUNE 9, 2020

You may be too busy reacting to the crisis to think about recovery at this moment, but research shows you will want to act before the crisis ends if you want the fastest recovery. Recent survey data from Global Research shows there is an expectation of -20% hit to the 2020 professional services revenue forecast.

SaaS Payments 59

SaaS Payments Payment Services Technical Review Payment Methods 59

SaaStr

JUNE 14, 2019

In his most recent role, Dave was the CEO @ Host Analytics where he quintupled ARR, halved customer acquisition costs and increased net retention rates before selling the company to a private equity sponsor. Before that Dave was SVP/GM of Service Cloud @ Salesforce where he led the $500m line of business for customer service applications.

Sales Hiring 141

Sales Hiring Payment Services SaaS Payments Underperforming Technical Team 141

User Pilot

APRIL 24, 2024

Tracking SaaS renewal rates enables predictable revenue, aiding financial planning and resource management for future growth. Effective renewal strategies enhance customer retention , drive revenue , and build a loyal base for long-term SaaS success. It supports MRR growth and provides consistent access to your users.

SaaS Payments 83

SaaS Payments Retention Payment Services Payment Solutions 83

All that Saas

MAY 1, 2021

In this roundup, we are going to have a look at some of the best Influencer Marketing Platforms that you can use to connect with the right influencers, manage campaigns, measure analytics, and a lot more. Influencer marketing platforms are a great solution to engage with your audience in the right way. dollars in 2018. Influence4you.

Payments 52

Payments Payment Solutions Payment Methods Payment Services 52

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

Baremetrics

MARCH 23, 2020

Typically it’s referring to users or revenue lost and is usually represented with either a percentage or dollar amount. Or if you said you had $2,000 in monthly revenue churn, that means you lost $2,000 in monthly recurring revenue from either customer cancellations or downgrades. So, when should you start worrying?

Churn 145

Churn Payment Methods Payment Solutions SaaS Payments 145

How To Buy Saas

DECEMBER 1, 2020

Setup Pricing model and payment gateways. Find quick platforms to launch your MVP. Plan Social Media Integration with your SAAS Business. Use monitoring tools to identify business emotions over the internet. Setup Pricing model and payment gateways. Find quick platforms to launch your MVP.

Growth Hacking 105

Growth Hacking Payment Methods SaaS Payments Payment Solutions 105

ProfitWell

FEBRUARY 26, 2020

Customer retention can hold more weight than acquisition. It’s the leading indicator of your business’ health and key metric to determine its ultimate valuation. It helps businesses keep their customers, maintain revenue growth, and understand why and when customers are leaving. What is retention software?

Payment Solutions 52

Payment Solutions Retention Payments Software Review 52

Baremetrics

NOVEMBER 10, 2019

Similarly, you’ll want to be able to look at new metrics as they become relevant to your business. Say, your customer acquisition efforts are starting to pay off, and you need to keep an eye on your Customer Acquisition Cost (CAC). a loan disbursement or an equity investment) will increase your cash. . Operating Model.

Deferred Revenue 111

Deferred Revenue SaaS Payments Sales Hiring Payment Services 111

SaaStr

JUNE 13, 2019

We invest from the very earliest stages to the latest stages of software and consumer companies and we’re based in California. The first goal is to share with you benchmarks. We believe benchmarks are really useful to help you build your business, because they provide good goalposts for financial planning and for goal setting.

Scale 208

Scale SMB Sales Hiring Payment Services 208

FastSpring

APRIL 1, 2021

Because the ultimate goal of using free trials for acquisition is to increase the number of paid users, your program’s success is based on looking at how often people upgrade from a free plan to a paid one. It is a concrete way to optimize customer acquisition. What does “Free Trial Conversion Rate” mean? Types of Free Trials.

Payment Solutions 98

Payment Solutions SaaS Payments Payment Methods Strategy 98

ProfitWell

APRIL 30, 2020

Now more than ever, given the COVID-19 pandemic, acquisition becomes harder and harder with each day. In this article I’ll explain why customer loyalty is more important than acquisition, some metrics you need to be tracking, and how to build customer loyalty in just a few steps. Customer loyalty: more important than acquisition?

SaaS Payments 52

SaaS Payments Payments Payment Methods Payment Services 52

SaaStr

OCTOBER 24, 2019

Nobody ever build a social network for business on this scale. Because there is not benchmarks. Exited to Semantic in 2008 and had a good exit for the early SaaS businesses then set up Notion and we focus on SaaS companies, mainly in Series A in the European market. .” Nobody had really done what we do before. ” No.

Payments 102

Payments Payment Features SaaS Payments Underperforming Technical Team 102

ProfitWell

MARCH 11, 2020

According to Walker , 2020 is the year where businesses need to shift their mindsets from "customer-focused" to "customer-committed." For years, aggressive customer acquisition strategies have dominated the marketing space. Where is the revenue leakage happening? Loyal customers are the bread and butter of a successful ROI.

Retention 52

Retention Metrics SaaS Payments Underperforming Technical Team 52

Baremetrics

DECEMBER 18, 2019

survey User Churn and Revenue Churn Quick Ratio. Sean Ellis, who ran growth in the early days of Dropbox, LogMeIn, and Eventbrite benchmarked nearly a hundred startups with his customer development survey. strong acquisition and retention) almost always exceeded that threshold. Evernote’s lost opportunity is in their model.

Retention 136

Retention Strategy Payment Solutions Technical Advisors 136

OpenView Labs

FEBRUARY 13, 2020

User Churn and Revenue Churn. Sean Ellis, who ran growth in the early days of Dropbox, LogMeIn and Eventbrite benchmarked nearly a hundred startups with his customer development survey. strong acquisition and retention) almost always exceeded that threshold. Calculate the revenue associated with each reason given.

Retention 52

Retention SaaS Payments Strategy Payment Solutions 52

User Pilot

JANUARY 15, 2021

Your KPIs are driven by your business goals. You need to make sure they are SMART, quantitative and benchmarked. Not only that, it’s essential in businesses of all sizes. Most analytics tools also allow you to segment your audience – by demographic features, by cohort, by user journey stage, by payment tier, etc.

SaaS Payments 65

SaaS Payments Payment Solutions Payments Underperforming Technical Team 65