Clouded Judgement

JANUARY 12, 2024

It’s better to come to that realization today than grinding for 2 more years only to realize it then when your cash balance has dried up and all of a sudden you have no leverage in an acquisition. An acquisition at $200m can be life changing for founders, or it can be worth nothing if they raised $250m at $1B valuation back in 2021.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

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

SaaSOptics

MAY 19, 2022

What Is Customer Acquisition? Customer Acquisition is the process of acquiring new customers in a business. For subscription-based SaaS businesses, your customer acquisition metrics indicate how effectively you acquire new users via sales, marketing, or a product-led approach like a free trial. Plain and simple.

Acquisition 59

Acquisition Scale Strategy Software Review 59

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 104

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 104

Clouded Judgement

APRIL 5, 2024

Competitors start telling prospects you’re competing on that “that company will screw you in the future because their VCs will force them to price gouge you so they can make money.” ” Acquisitions become tougher because the preference stack is higher. This list goes on. The market sold off after this.

Cloud 161

Cloud Scale Pricing Revenue 161

Sixteen Ventures

AUGUST 14, 2022

You want NRR to be over 100%, because that means – in theory – you could turn off new customer acquisition and the company wouldn’t just continue to generate revenue, but would actually grow. Why they’re investing in you. If you added more than you lost, you will have “retained” greater than 100%. Four Ways to Improve NRR.

Customer Success 97

Customer Success Investment Sales Hiring Retention 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 How to Create a Subscription Box.

Outsourcing Services 123

Outsourcing Services Payment Methods Subscription Payment Features 123

SaaStr

FEBRUARY 9, 2024

From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. So when’s the right time to invest more in sales and marketing when we’re all trying to become radically efficient ? At the same time? The product becomes your sales team.

Scale 251

Scale Sales Hiring Sales Marketing 251

Clouded Judgement

MARCH 22, 2024

And once a customer has paid back the initial acquisitions costs to acquire it, all future streams of revenue can loosely be described as a cash flow annuity. But this is changing - many categories are becoming commoditized leading to massive pricing pressure. Altimeter is an investment adviser registered with the U.S.

AI 183

AI Revenue Cloud Technical Advisors 183

ProfitWell

NOVEMBER 6, 2019

The subscription revenue model is hardly new. But in the past few years, subscriptions have seen a bit of a resurgence. In fact, you'd be hard-pressed to find an industry that hasn't seen at least one subscription success story: Cars. Even the humble houseplant doesn’t seem immune to the subscription economy.

Payment Features 74

Payment Features Payments Subscription Revenue 74

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. Revenue-based valuations are more suitable for SaaS startups because it doesn’t take into account upfront investment which affects SDE or EBITDA negatively.

SaaS 102

SaaS Customer Lifetime Value Acquisition Metrics 102

Clouded Judgement

DECEMBER 21, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 177

Cloud Software Benchmarks Retention 177

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

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 164

Compensation Sales Azure AWS 164

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

Blulogix

FEBRUARY 9, 2024

As we delve deeper into the subscription economy, it’s essential to understand the multifaceted benefits and inherent challenges of adopting recurring revenue models. This predictability aids in accurate financial forecasting, budgeting, and resource allocation, enabling more strategic planning and investment.

Revenue 52

Revenue Business compliance B2B 52

SaaStr

DECEMBER 27, 2020

If New Relic had even 120% NRR, it’s growth rate with the exact same rate of new customer acquisition would be 137% instead. New consumption pricing model has increased revenue 15% where rolled out. Done right, this sort of anti-SaaS pricing model can lead to significantly more revenue.

Scale 291

Scale Outsourced Development SMB Cloud 291

Stax

FEBRUARY 21, 2024

And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever. Enter the SaaS Magic Number, which measures the return on sales and marketing spend in generating new subscription revenue.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

FastSpring

MAY 14, 2019

The price you paid at checkout was essentially a perpetual license for the lifetime of the application. However, our expectations for the quality of the software continue to grow and outpace any current investments. Here’s how your company can benefit from switching from a perpetual license to a subscription plan.

Payment Features 68

Payment Features Payment Methods Subscription Payment Services 68

SaaStr

JANUARY 24, 2024

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. From a process standpoint, you have to be ready to invest in Enterprise sales and build infrastructure to make sure sales can be successful. The result?

Scale 217

Scale Sales Hiring Scaling Revenue 217

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. We sometimes hear companies call themselves “SaaS” companies, because they sell subscriptions, but they do not host software. In addition, it affects cash flow. It changes sales and marketing organizations and their execution.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

Clouded Judgement

SEPTEMBER 12, 2023

Their ongoing revenue can “fund” new logo acquisition and allow the business to operate profitably at paybacks much larger than what private companies (with smaller ARR bases) can afford. To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.

Cloud 169

Cloud Software Benchmarks Retention 169

FastSpring

DECEMBER 20, 2018

SaaS Pricing can be difficult to determine for many digital businesses. First, you need to be sure that you’ve priced your product fairly, and second, you want to offer the payment option that will appeal to the largest number of users. Usage-based pricing models, like pay-per-use, certainly have their place.

Payment Features 63

Payment Features SaaS Payments Subscription Payment Solutions 63

User Pilot

MAY 8, 2023

As the number of software tools and subscriptions increase, so too do the expectations of SaaS customers. The product experience covers the time spent inside the application itself while the user experience can include other processes like creating an account, talking to support representatives, and canceling/upgrading a subscription.

Software Review 98

Software Review Outsourcing Services SaaS Sales Hiring 98

Clouded Judgement

JANUARY 27, 2023

” Or said another way, “has the market appropriately discounted the rocky road ahead, and is this priced in.” Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). ” On Thursday, we saw the market lift.

Cloud 141

Cloud Azure Pricing Subscription 141

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 101

Customer Lifetime Value SaaS Software Review Acquisition 101

OpenView Labs

MARCH 26, 2019

The when becomes a critical input into designing your pricing model. Working with a large B2B SaaS company that has a long implementation and configuration cycle, we uncovered contradictions between their pricing and how the customer was getting value. They are as important as your customer acquisition costs (CAC).

Pricing 62

Pricing B2B Finance Consulting 62

ProfitWell

MARCH 12, 2020

The subscription-based economy boom has brought with it more competition than ever before, raising the bar for companies trying to offer recurring products or services to their customers. However, behind the boom lies the rising consumer demand for subscriptions. 10 of the best subscription business tools for SaaS products.

SaaS Payments 59

SaaS Payments Subscription Payment Features Payments 59

Clouded Judgement

JUNE 9, 2023

Very healthy new business (new customer) acquisition. Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

Trends 130

Trends Cloud Azure AWS 130

Practical Advice on SaaS marketing

MARCH 5, 2012

Having lived through several acquisitions during my career in technology companies, I have some idea of what the folks at SuccessFactors (acquired by SAP last year) and Taleo (acquired by Oracle a few weeks ago) are going through. But offering customers a choice doesn't come without a price for the solution provider.

Acquisition 100

Acquisition SaaS Finance Business Model 100

OPEXEngine

JUNE 2, 2021

Smart pricing enabled process management software provider Cherwell to get the most from its subscribers while new businesses languished. “It’s a combination of our cost of sales on a deal and our customer acquisition cost attendant to that,” he said. ” Process efficiency. . ” Process efficiency. .’

Metrics 52

Metrics Pricing Airlines Sales Hiring 52

Baremetrics

OCTOBER 22, 2020

Enter usage-based pricing. In this guide, we’ll take a deep dive into usage-based pricing, how it works and who it’s for. What is usage-based pricing? What are the advantages of usage-based pricing? What are the advantages of usage-based pricing? What are the downsides of usage-based pricing?

SaaS Payments 80

SaaS Payments Pricing Scale Payment Services 80

Baremetrics

MARCH 7, 2021

Read what you should know about subscription management and why it is important in recent times! Many products and services online are beginning to adopt subscription-based systems for their billing processes. Apart from the recurring revenue, subscription billing systems also offer appreciable stability to businesses.

Payment Features 45

Payment Features Merchant Services Payment Methods Payment Solutions 45

SaaStr

SEPTEMBER 12, 2019

I’m talking about product-led growth as an investment strategy, but really my background is 10 years of operating experience in the product-led growth world. Now I’m investing in that. I say investment strategy, but really it’s like how do you build a company that’s focused on product-led growth?

Investment 100

Investment Underperforming Technical Team Sales Hiring Software Review 100

Clouded Judgement

APRIL 12, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

NOVEMBER 3, 2023

Namely, two large customers caused a huge issue (New Relic account growing very slowly post their acquisition, and a gaming company going back on prem - which I’m guessing means going to self managed Kafka?). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Software Review 161

Software Review Cloud Software Azure 161

Clouded Judgement

JUNE 20, 2023

The market is clearly pricing in lower rates + reacceleration of growth. Their ongoing revenue can “fund” new logo acquisition and allow the business to operate profitably at paybacks much larger than what private companies (with smaller ARR bases) can afford.

Cloud 161

Cloud Software Benchmarks Scale 161