SaaStr

JANUARY 24, 2024

Solving High Volume, Low Conversion at Lattice Dini Mehta joined Lattice at $3M in revenue when it had just 10 people in seat for Go-To-Market and 7 salespeople. From an R&D perspective, they invested in what they called vertical solutions to support those new use cases. So, Calendly decided to invest in going Enterprise.

Scale 227

Scale Sales Hiring Scaling Revenue 227

SaaStr

MARCH 27, 2024

Revenue Growth is Up Just 24%. HubSpot’s revenue growth of 24% (21% in constant currency) is basically equal to its net new customer count. Despite raising prices and selling more products, HubSpot ACV is basically flat at $11,365. Clearly, even SMBs are working to moderate spend, even as vendors increase pricing.

Scale 240

Scale Cloud Pricing Scaling 240

User Pilot

SEPTEMBER 20, 2023

Working out pricing for a SaaS can be difficult, so consider using a cost-plus pricing method. TL;DR Cost-plus pricing, or markup pricing, is where you add a set to a product’s unit cost, often overlooking competitive market prices. Justifying price increases is easier when adopting a cost plus strategy.

Pricing 105

Pricing Software Review Market Research Acquisition 105

SaaStr

DECEMBER 30, 2022

DigitalOcean has done that and grown beyond $150M in revenue in Q3 2022. Cliff Bockard, Senior Vice President of Revenue at DigitalOcean, joined us at SaaStr Scale to discuss how businesses can serve SMBs and still bring in large numbers of revenue. . Market understanding. SMBs have restricted budgets. Key takeaways.

Scale 201

Scale Scaling Revenue Enterprise 201

SaaStr

FEBRUARY 17, 2023

While the allure of customer acquisition can pull a founder’s attention, it’s equally important to dedicate resources to fighting churn and expanding revenue from existing customers. They discuss how Fox helped build a churn-fighting, upselling, and cross-selling machine that continues to generate revenue. Something missing?

Retention 212

Retention Revenue Startup Sales Hiring 212

SaaStr

JULY 10, 2022

Let’s take a look at 3 B2B acquisitions from a few years back as an example. Let’s first start with the $35m acquisition of TokBox after 11 years and the $220m acquisition of SpringCM after 13 years. talking about “tuck-in” acquisitions that can attach to existing revenue streams.

Venture Capital 359

Venture Capital Acquisition AI Pricing 359

SaaStr

SEPTEMBER 19, 2023

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. You don’t want to be there.

Business Model 245

Business Model SaaS Payments Payments Headcount 245

Tom Tunguz

DECEMBER 31, 2023

The anticipation of a rate change drives fear of target acquisition valuations. In the last two years, M&A has totaled about $49b & it surges to above $60b driven by AI acquisitions. The winter forced many companies to evolve from open-source projects to revenue-generating businesses. The Fed cuts rates, which helps.

AI Search 208

AI Search AI Scale Headcount 208

Blulogix

FEBRUARY 9, 2024

How Recurring Revenue Sustains Modern Businesses Amidst Uncertainty By BluLogix Team The Vital Role of Recurring Revenue In an era marked by rapid technological advancements and shifting consumer preferences, recurring revenue models have become the lifeline for modern businesses.

Revenue 52

Revenue Business compliance B2B 52

Tom Tunguz

SEPTEMBER 20, 2023

Earlier today, Cisco announced its intention to acquire Splunk for $28b , a 30% premium to the closing price. Metric Value Revenue, $b 3.64 Revenue Growth 37% Gross Margin 77.7% in revenues growing at 37% places the business in the top quartile of public software companies. Metric Value Revenue, $b 3.64

Trends 159

Trends Software Review Acquisition Pricing 159

Clouded Judgement

JANUARY 12, 2024

The ZIRP period created a lot of confusion given software buying was happening at a break neck pace - and it was easy to think you had differentiated product market fit because your business momentum (ie revenue) suggested you did. Revenue multiples are a shorthand valuation framework. Have these conversations today.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

SaaStr

SEPTEMBER 29, 2022

Free user acquisition. Stage 3: Prove scalable quality user acquisition. It’s time to reduce the customer acquisition cost by experimenting with content marketing and virality. They invest development resources for non-technical people to quickly run and analyze these experiments. This adoption funnel goes through: .

Technical Review 241

Technical Review Technical Advisors Scale Compensation 241

Neil Patel

NOVEMBER 9, 2020

Plus, the price tag on those more established businesses often run into the billions. That’s an expensive mistake if you make the wrong investment. Micro startup acquisitions. But before we dive into that, we need to look into what micro startup acquisitions are and why you need to sit up and take notice. The solution?

Technical Review 144

Technical Review Payment Methods Acquisition Development Team Review 144

Clouded Judgement

APRIL 5, 2024

A favorite clip of mine is when Russ Hanneman is talking about how pre-revenue businesses are the best kind of businesses. Here’s part of his quote: “If you show revenue people will ask how much and it will never be enough…If you have no revenue you can say you’re pre revenue. This list goes on.

Cloud 161

Cloud Scale Pricing Revenue 161

Baremetrics

AUGUST 8, 2021

For most SaaS businesses, customer acquisition is one of the most challenging stages of growth. For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. Results in an Increase in Revenue 2. Raise Prices for New Customers 2.

Pricing 111

Pricing SaaS Scale Churn 111

Chart Mogul

AUGUST 20, 2020

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. The better prepared you are for an acquisition, the smoother it’ll go, leaving you financially, operationally, and psychologically stronger during negotiations. Speak to other founders.

Acquisition 105

Acquisition Startup Technical Review Scale 105

Clouded Judgement

APRIL 11, 2024

This has all resulted in the median stock price declining 5% YTD. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud 169

Cloud Software Azure AWS 169

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions.

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

Sixteen Ventures

AUGUST 14, 2022

The people in charge of your company – the Executives, Board, and Investors – want to improve a metric called NRR (Net Revenue Retention or NDR, Net Dollar Retention, if you prefer) for one very simple reason: it plays a direct role in the value of the company. What is NRR? Talk about efficient growth! Decrease Contraction.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

User Pilot

MARCH 25, 2024

An accurate valuation is necessary to secure the right price for the company or adequate funding without diluting its share value. It uses revenue and operating costs to determine the company’s value. The multiple depends on numerous factors, like sustainability and transferability of revenue and growth.

SaaS 105

SaaS Customer Lifetime Value Acquisition Metrics 105

SaaStr

APRIL 4, 2023

You’ll probably have a smaller lifetime customer value and customer budget for acquisition. Find The Balance Between CAC And LTV The achievable lifetime value defines your customer acquisition cost target. Every company is different and will have varying solutions, customer acquisition costs, and lifetime value.

Scale 231

Scale Strategy Scaling Outbound Sales Team 231

SaaSOptics

MAY 19, 2022

What Is Customer Acquisition? Customer Acquisition is the process of acquiring new customers in a business. Not only is it one of the main drivers of revenue growth for early-stage companies, but it’s a primary goal for SaaS businesses across market stages. More customers = more revenue. Plain and simple.

Acquisition 59

Acquisition Scale Strategy Software Review 59

SaaStr

JULY 20, 2022

Yes, these really can be seen as customer acquisition costs, and they are: “We consider the net costs of onboarding and hardware, in addition to our sales and marketing activities, to be core elements of our customer acquisition approach.” A fairly standard SMB price point. So why the terrible revenue multiple?

SaaS Payments 238

SaaS Payments Scale Payment Methods Payments 238

SaaStr

FEBRUARY 9, 2024

The first role that comes to mind is driving revenue and it’s probably within sales. New hires in your GTM team will usually fall within one of four categories: Distribution Revenue Storytelling or messaging Some form of operations Most of the time, it’s distribution or revenue, qualify people as in or out for those two areas.

Scale 258

Scale Sales Hiring Sales Marketing 258

SaaStr

JULY 5, 2022

Usage was there, but revenue wasn’t tracking the usage growth. By moving from Freemium to “Contact Me” only (albeit with transparent pricing), sales went way, way up. And they probably needed to do this, to get the revenue engine going. Your Long Tail is an asset that lasts decades, if you invest.

Scale 289

Scale Sales Engineering Acquisition 289

SaaStr

SEPTEMBER 20, 2023

Announcements of several blockbuster acquisitions, most notably from Adobe acquiring Figma, which was the highest valuation multiple offered in an acquisition for any software company at scale. A 1% improvement in revenue growth today has the same impact on valuations as a 2% improvement in free cash flow margin.

Cloud 243

Cloud Payments Software Review Payment Solutions 243

Tom Tunguz

JUNE 12, 2016

The acquisition frenzy continues in SaaS. billion, which prices the business at 8.1x trailing 12 month revenues and 6.7x next 12 month revenues. In the 2016 acquisition market, the median acquisition multiple is 7.8x trailing 12 month revenue and 6.4x next 12 month revenue. billion, a 7.7x

Acquisition 100

Acquisition Startup Banking Benchmarks 100

Sales Hacker

SEPTEMBER 18, 2020

Revenue Operations is at the forefront of a paradigm shift — to view the buyer’s journey as a seamless thread across multiple people, systems, and value propositions. This involves driving more new logo and renewal revenue, lowering customer acquisition cost, and increasing forecasting predictability. Execute FAST.

Technical Review 121

Technical Review Development Team Review Systems Review Engineering 121

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. New Relic’s net negative churn / net dollar retention has dropped to 98% in the last quarter, despite a record 77% of revenue being from the enterprise.

Scale 299

Scale Outsourced Development SMB Cloud 299

Totango

APRIL 30, 2021

Comparing the cost of customer retention versus customer acquisition underscores why retaining clients is so important. Calculating the Cost of Customer Acquisition. To calculate your average CAC, total up all the marketing and sales costs that go into your acquisition efforts for a given period. Price comparison engines.

Acquisition 63

Acquisition Retention Social Media Advertising 63

SaaStr

DECEMBER 29, 2023

In part two we head into IPO waters, how to incorporate AI into your products, the best way to drive employee performance, pricing models, and much more. Q: How do you stand out in terms of customer acquisition against large competitors who aren’t incorporating AI? If AI pricing remains expensive, we may see new pricing models.

Scale 229

Scale Sales Hiring Customer Success AI 229

User Pilot

AUGUST 6, 2023

A consistent omnichannel customer experience can improve satisfaction , build loyalty , drive acquisition, increase retention , boost LTV, and help you make data-driven decisions. User acquisition. Optimizing the omnichannel customer experience increases the odds of each touchpoint leading to a conversion. Higher retention.

Investment 97

Investment Banking Social Media Customer Lifetime Value 97

User Pilot

FEBRUARY 28, 2024

There are various metrics to track the customer path, such as: Awareness stage metrics Acquisition stage metrics Activation stage metrics Adoption stage metrics Retention stage metrics Revenue stage metrics Referral stage metrics To create a successful customer path, follow the steps below: Conduct user path analysis to identify the happy path.

Customer Lifetime Value 105

Customer Lifetime Value SaaS Software Review Acquisition 105

Chart Mogul

AUGUST 20, 2020

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. The better prepared you are for an acquisition, the smoother it’ll go, leaving you financially, operationally, and psychologically stronger during negotiations. Speak to other founders.

Acquisition 52

Acquisition Startup Technical Review Scale 52

SaaStr

NOVEMBER 14, 2023

Then, we moved to a more customer-friendly model with SaaS and subscription-based pricing. That way, they know what growth to expect and what incremental uplift they’re getting from having sales involved so they can continue to make better investments. The first might be market acquisition. The lines will blur.

Compensation 159

Compensation Sales Azure AWS 159

Clouded Judgement

DECEMBER 21, 2023

Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q3 ’23 revenue) / (Q3 ’22 revenue) - 1.

Cloud 177

Cloud Software Benchmarks Retention 177

ProfitWell

JANUARY 13, 2020

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? If the answer is no, then there is potential for revenue-related issues as your company matures. What is an effective price?

Pricing 52

Pricing Subscription Payment Features Strategy 52