Stax

JANUARY 28, 2024

Long before the digital age, newspaper and magazine companies have been using the subscription model to create and retain a consistent readership for their publications. The most potent benefit of the subscription-based business model is that companies are guaranteed a fixed revenue stream—if they can retain their customers or subscribers.

Payment Features 88

Payment Features Payment Methods Payment Solutions SaaS Payments 88

ChurnZero

APRIL 25, 2025

How can we shift our mindset from reactive to future focused, from assessing past mishaps to forecasting ideal scenarios? Renewals forecasting was historically a sales game, but increasingly, CS teams are responsible for expansion revenue. Choose the right metrics to inform your forecasting model. Where can you start?

Forecasting 52

Forecasting Customer Success Payments Data 52

FastSpring

JUNE 25, 2019

A challenge faced by all subscription-based businesses is figuring out a way to keep recurring payments flowing for their company. And since revenue is closely tied with business growth and wellbeing, any dip in recurring revenue is immediately felt throughout the entire organization.

Payment Methods 89

Payment Methods Payment Features Churn SaaS Payments 89

Baremetrics

MAY 4, 2021

Financial forecasting models are used to predict financial outcomes within a specified area of your business, like recurring revenue or payroll. Adopting this approach provides you with invaluable insights into your subscription-based business, helping you calculate costs, improve budgeting, and allocate resources.

Forecasting 98

Forecasting Benchmarks Finance Payment Features 98

How To Buy Saas

DECEMBER 20, 2024

Keeping track of the accounting for SaaS businesses can be challenging because of the subscription model that they operate on, and that is why most companies opt for cloud-based software solutions to smoothen the processes. This is an important process as you need to send invoices to customers on time and also collect revenue effectively.

Payment Services 52

Payment Services SaaS Payments Payment Solutions Payment Features 52

FastSpring

DECEMBER 20, 2018

What’s the story with subscriptions? If your digital business is just getting off the ground, subscriptions can be a lifesaver. Thanks to heavy up-front customer acquisition costs, SaaS startups often struggle with cash flow issues until they recover their initial investment.

Payment Features 89

Payment Features SaaS Payments Subscription Payment Solutions 89

FastSpring

SEPTEMBER 24, 2020

Revenue refers to the total earnings a company generates through its core operations like sales of products or services, rents on a property, recurring payments , interest on borrowings, etc. The Future of Revenue: Subscription Revenue. As mentioned above, subscription payments create a recurring payment cycle.

Payments 112

Payments Payment Methods Payment Features Payment Services 112

Baremetrics

OCTOBER 24, 2021

For more discussion on this topic, check out the rest of the series on using the dynamic duo of Baremetrics and Stripe to automate the calculation of your customer lifetime value (LTV) , churn , and customer acquisition cost (CAC). Sign up for the Baremetrics free trial and start managing your subscription business right.

Payment Services 97

Payment Services Payment Features Payment Methods Payments 97

Neil Patel

APRIL 12, 2021

They offer some of the best-known subscription boxes around, reflecting an increasingly popular (and potentially lucrative) business model. Why Should You Launch a Subscription Box? According to MarketsandMarkets , the subscription and recurring billing market will grow to around $7.8 Recurring Business Revenue.

Outsourcing Services 139

Outsourcing Services Payment Methods Payment Features Subscription 139

Sales Hacker

FEBRUARY 7, 2025

Scaling Operations: As the customer base grows, the company refines its pricing strategy to optimize customer acquisition costs and lifetime value. The introduction of Zoom One drove a 27% year-over-year increase in enterprise customers, reinforcing the value of simplifying pricing for customer acquisition and retention.

Pricing 106

Pricing Scale SaaS Technical Review 106

Chaotic Flow

MARCH 25, 2014

A SaaS business is different because of the recurring revenue subscription model. In fact, most of what follows applies equally well to any subscription business. The economics of a subscription-based business are fundamentally different from those of a transaction-based business. What makes a SaaS business different?

Metrics 156

Metrics Business SaaS Forecasting 156

Clouded Judgement

JUNE 19, 2024

Every public company has a number of equity research analysts covering them who build their own forecasted models, which combine guidance from the company and their own research / sentiment analysis. At $200M+ ARR, businesses have built up a substantial base of recurring revenue streams that have already paid back their initial CAC.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

Andreessen Horowitz

APRIL 23, 2024

Alex: Let’s forecast out. The opportunity is to leverage that trust factor to drive customer acquisition, and it has worked for us. Immad: I find it funny that everyone complains about the difficulty of SMB and consumer customer acquisition, but ironically, SMB and consumer companies are some of the most valuable.

Payments 110

Payments Forecasting Payment Services Sales Hiring 110

FastSpring

SEPTEMBER 2, 2020

Depending on what calculation you use, LTV can paint an honest picture of whether your customers are spending and staying long enough to cover acquisition costs and hopefully—make you a profit. Tracking your LTV/CAC ratio allows you to spend the right amount on customer acquisition while still making a profit.

Scale 148

Scale Payment Methods Payments SaaS Payments 148

User Pilot

NOVEMBER 27, 2023

Improve business valuation Your company’s valuation is tied closely to its revenue performance, especially because you’re a subscription business. It enhances your perceived value, potentially leading to more favorable investment opportunities, partnerships, or acquisition deals that drive scalability.

Payments 105

Payments Revenue Payment Features SaaS Payments 105

ProfitWell

JUNE 27, 2019

From CRM software to coffee beans, shaving blades to designer gowns, recurring billing is the lifeline for every subscription business. It’s easy to see why—automatic charges for subscriptions are simple and convenient for customers and predictable and sustainable for companies. What is recurring billing?

Merchant Services 76

Merchant Services Payment Features Payments SaaS Payments 76

ProfitWell

NOVEMBER 13, 2019

The good news is that the most important subscription KPIs are constant across SaaS businesses, whether you’re selling a timekeeping software or an accounting tool. Read on to find out what the top six subscription KPIs are, why you should be tracking them, and how. Why subscription companies need to track KPIs. Forecast Demand.

Payment Features 80

Payment Features Subscription Customer Lifetime Value Benchmarks 80

User Pilot

MARCH 6, 2023

What’s product-led acquisition? TL;DR Product-led acquisition (PLA) is an organic way of growing a customer base through recommendations from existing customers. The benefits of PLA include considerably lower customer acquisition costs, exponential user base growth, and lower dependence on changes in paid advertising.

Scale 98

Scale Acquisition Scaling Customer Lifetime Value 98

ProfitWell

MARCH 23, 2020

There are a few key metrics that all subscription businesses should be completely on top of. Churn is the make or break of your subscription business. Churn is defined as the moment when a subscription ends and renewal does not happen, or when a customer cancels. Without these, you won’t know how you’re faring. Churn rate.

Payment Features 85

Payment Features Subscription Metrics Business 85

Chart Mogul

APRIL 15, 2021

Keeping your pace of growth while going through an acquisition is difficult. He noticed almost right away that it would be easy to re-package what they created for internal use as a product and sell it as subscription-based software. Acquisition by Sage. A similar shift has also occurred in their strategy after the acquisition.

Acquisition 83

Acquisition Data Scale Banking 83

Stax

MARCH 18, 2025

However, a SaaS company providing global HR and payroll solutions may have a few hundred customers paying a monthly or annual feein other words, making recurring payments over a longer period of time. Churn is the percentage of customers that end their subscriptions within a certain amount of time. Customer acquisition cost.

Scale 117

Scale Payment Services Payments SaaS Payments 117

SaaSOptics

FEBRUARY 13, 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. The main difference between accounting for a subscription vs. a traditional business is the method used.

Payment Features 105

Payment Features Outsourced Development SaaS Software Review 105

ChurnZero

MAY 23, 2025

But in a subscription economy, the reality is that its far more than that. Poor GRR increases customer acquisition cost (CAC) because it forces you to constantly replace lost revenue. A poor ratio limits your ability to invest – not just in new customer acquisition, but in areas like product and company-wide hiring.

Customer Success 52

Customer Success Metrics Revenue Scale 52

ProfitWell

JANUARY 17, 2020

Nowadays, it seems like you can buy just about anything on a recurring monthly plan: razors, clothing, knick-knacks, candles, etc. Over the past decade, ecommerce subscription companies have doubled down on the subscription model to monetize their relationships with customers. What are ecommerce subscription companies?

Payment Methods 12

Payment Methods Payments Payment Features Merchant Services 12

ProfitWell

MARCH 9, 2020

The subscription business model has seen an immense rise in popularity in recent years, and with good reason. The subscription-based economy grew 350% between 2012 and 2019, and subscription businesses grew revenues about five times faster than S&P 500 company revenues during that time. What is subscription marketing?

Payment Features 64

Payment Features Subscription Payment Methods Marketing 64

Baremetrics

OCTOBER 8, 2021

To run a business online, you probably need a customer relationship management ( CRM ) software package and/or payment processor to manage your customers and their invoices. Stripe is often the payment processor of choice for SaaS businesses because it can handle recurring revenue streams. Table of Contents. What is LTV?

Payment Services 94

Payment Services Payments SaaS Payments Payment Features 94

Baremetrics

AUGUST 22, 2021

Cash Accounting Disadvantages Cash Accounting vs. Accrual Accounting Statement of Cash Flows Cash Forecasting. You can even see your customer segmentation , deeper insights about who your customers are , forecast into the future, and use automated tools to recover failed payments. What are your acquisition costs?

Payment Solutions 91

Payment Solutions Payment Methods Payment Services Payments 91

Baremetrics

FEBRUARY 15, 2021

Annual Recurring Revenue (ARR) is the amount of money a company can expect to bring in from subscriptions on an annual basis. Subscription businesses rely on their sales and marketing teams to bring money into the company in two ways: by selling new subscriptions and by selling upgrades to existing subscribers.

Payments 91

Payments Revenue SaaS Payments Payment Services 91

Baremetrics

APRIL 21, 2021

When it comes to understanding finance for SaaS companies, there are key differences between more traditional financial models and SaaS-specific financial modeling and forecasting. Baremetrics can help you improve your SaaS finance model thanks to our robust forecasting capabilities in Flightpath. Start your free trial now.

Finance 98

Finance Scale SaaS Forecasting 98

Baremetrics

MARCH 16, 2021

When choosing the right billing software for your subscription businesses, there are many things to consider. Recurly vs. Zuora at a Glance Geared towards the subscription economy, both platforms help clients with their billing and invoicing while helping with customer relationship management (CRM). Want to Reduce Your Churn?

Payment Solutions 59

Payment Solutions Payment Features Payments Merchant Services 59

User Pilot

JANUARY 28, 2024

11 key metrics to track for evaluating performance : Customer Acquisition Cost (CAC) is an indication of the efficiency of your marketing and sales efforts and is crucial for product profitability and scalability. Monthly Recurring Revenue (MRR) tracks predictable monthly revenue, essential for financial health and growth forecasting.

Metrics 105

Metrics Customer Lifetime Value Business SaaS 105

Clouded Judgement

OCTOBER 3, 2024

Every public company has a number of equity research analysts covering them who build their own forecasted models, which combine guidance from the company and their own research / sentiment analysis. At $200M+ ARR, businesses have built up a substantial base of recurring revenue streams that have already paid back their initial CAC.

Cloud 167

Cloud Software Benchmarks Retention 167

Chargify

OCTOBER 21, 2020

As many leading companies know, customer subscription management isn’t a “set it and forget it” concept. It is important for businesses to constantly analyze the health of their subscription model to make sure it is truly working for their customers and their bottom line. Forecast potential churn and identify mitigations.

Payment Features 63

Payment Features Subscription Payment Services SaaS Payments 63

Kellblog

OCTOBER 30, 2022

Forecast 2022 ARR growth of 36%, so they’re planning to accelerate. Customer acquisition cost (CAC) ratio of 1.2 Margin profile of 77% subscription, 73% blended. That said, let’s meet the Joneses , who have median: ARR growth of 31%, lower than I’d hope. Everyone’s an optimist. blended, 1.8 new, and 0.6

Metrics 145

Metrics SaaS Benchmarks Churn 145

Baremetrics

AUGUST 30, 2021

SaaS companies generate their revenue from the subscription payments that customers pay for using their software. The eventual profit of a SaaS organization is the difference between the subscription revenue and the cost incurred in doing the above-mentioned activities. It helps in forecasting profit iii. What is ARR?

SaaS Payments 98

SaaS Payments Payment Services Payments Outsourced Development 98

Clouded Judgement

APRIL 11, 2024

Every public company has a number of equity research analysts covering them who build their own forecasted models, which combine guidance from the company and their own research / sentiment analysis. At $200M+ ARR, businesses have built up a substantial base of recurring revenue streams that have already paid back their initial CAC.

Cloud 184

Cloud Software Azure AWS 184

Clouded Judgement

DECEMBER 21, 2023

Every public company has a number of equity research analysts covering them who build their own forecasted models, which combine guidance from the company and their own research / sentiment analysis. At $200M+ ARR, businesses have built up a substantial base of recurring revenue streams that have already paid back their initial CAC.

Cloud 184

Cloud Software Benchmarks Retention 184