SaaStr

MARCH 23, 2021

Battery Ventures’ data says while VC investment $$$ are on fire — they aren’t going into more startups. Revenue growth slowed in 2020 for the average public SaaS company — but accelerated for the largest ones. The average SMB SaaS company has $295k in revenue per employee, and $450k in the enterprise.

Investment 237

Investment SMB Acquisition Cloud 237

SaaStr

JULY 13, 2022

Co-founder and CEO of Insider , Hande Cilingir, talks about what it takes to write a successful revenue growth story. However, the revenue forecast accuracy and the realization of that revenue each month are more important. Or the revenue their business will generate by month-end. Mistake 1: Not accepting your mistakes.

Scale 220

Scale Sales Hiring Revenue Marketplace as a Service 220

SaaStr

APRIL 20, 2024

The current business model for software companies involves spending a significant portion of revenue on sales, regardless of available tools and automation. Marketers should focus on the acquisition channels they’re best at, even if it’s not the perfect fit for the situation.

Sales Hiring 255

Sales Hiring Startup Marketing Technical Review 255

SaaStr

NOVEMBER 25, 2023

Jameson Yung, SVP of Sales at Gong, and Sam Blond, Partner at Founders Fund and previous CRO at Brex, share five tactical ways to get back to growing and hitting revenue targets. The days of working a little for big returns are behind us in the Boom of ‘21, so what can you do to start hitting revenue targets? #1: Revenue matters, too.

Sales Hiring 199

Sales Hiring Underperforming Technical Team Revenue Sales 199

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.

Retention 209

Retention Revenue Startup Sales Hiring 209

SaaStr

MAY 10, 2022

He highlights the three key strategies that helped TripActions scale and boost their revenue. With a clear strategy for direction, stakeholders, employees, and customers can remain loyal and invest confidently, even during a crisis. Develop a well-defined vision. They ultimately want to be assured of long-term stability.

Travel 202

Travel Revenue Underperforming Technical Team Scale 202

Tom Tunguz

SEPTEMBER 16, 2017

How much should a SaaS startup invest in sales and marketing at different stages of the business? Sales and marketing investment depends on many different factors including establishing product market fit, the business’s sales model (inside, field, freemium), and not least, cash balance and fundraising capacity. Revenue, $M.

Investment 274

Investment Startup Marketing SaaS 274

User Pilot

AUGUST 10, 2023

Are you trying to find your business’s average customer acquisition cost? And the customer acquisition cost (CAC) shows you how effective you’re with your sales and marketing efforts to acquire new customers. TL;DR Customer acquisition cost (CAC) measures the total sales and marketing expenses for acquiring new customers.

Acquisition 74

Acquisition Benchmarks Customer Lifetime Value B2B 74

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. Key takeaways.

Scale 197

Scale Scaling Revenue Enterprise 197

SaaStr

APRIL 19, 2024

He’s invested in startups as a VC since 2013 and has 10x his fund. EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. The Adobes, Microsofts, and Intuits made $1M of revenue per employee. Now, every public SaaS company is at $300k to $400k of revenue per employee.

Engineering 245

Engineering Business Model Pricing Scaling 245

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. Know your numbers.

Acquisition 105

Acquisition Startup Technical Review Scale 105

Neil Patel

NOVEMBER 9, 2020

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. Micro Startup Acquisitions: What Are They, and Why Should I Care? Micro Startup Acquisition Trends.

Technical Review 144

Technical Review Payment Methods Acquisition Development Team Review 144

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

Totango

JUNE 15, 2022

All companies are going through the exercise of evaluating their investments, deciding what to cut and what to keep, what strategies to use, and simply, how to weather the storm. Customer retention is the lifeblood of recurring revenue enterprises, no matter what the external economic circumstances may be.

Customer Success 101

Customer Success Investment Acquisition Communication 101

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. ACV Basically Flat at $11,365 This is likely a “macro” impact as well in part — as well as the fact that HubSpot continues to invest in its smaller starter customers.

Scale 241

Scale Cloud Scaling Pricing 241

Tom Tunguz

DECEMBER 6, 2022

The chart above shows the combined Sales & Marketing + Research & Development Costs divided by revenue. PLG companies spend 9 percentage points of revenue more on S&M + R&D than sales driven companies (p value < 0.001 since Covid). S&M Spend / Revenue. R&D Spend / Revenue. Total Spend / Revenue.

Headcount 303

Headcount Market Research Acquisition Education 303

SaaStr

MARCH 29, 2024

So the other day a CEO reached out to me about advice on an acquisition. They wanted to do three things: Enter a space they had no product or customers in today; and Add on at least $10m of extra revenue for the year; and Not add too much to their burn rate. So I knew the space fairly well.

Pricing 239

Pricing Scale Startup Acquisition 239

User Pilot

FEBRUARY 4, 2023

Wondering how you can make the most of your growth analytics to boost average revenue per user, and retention, and drive product growth ? TL;DR Growth analytics looks at each pillar of growth and chooses the metrics that dictate product growth and revenue. The growth metrics you should be tracking.

Acquisition 93

Acquisition Retention Churn Metrics 93

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

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 358

Venture Capital Acquisition AI Pricing 358

Tom Tunguz

SEPTEMBER 23, 2018

At the time it was taken private by Vista, Marketo generated $241M in trailing revenue, growing at 35% annually. By the time of the sale, revenues had grown to $321M, growing at about 21% annually and profitable. Presumably, the company traded investments in growth for profitability to service the new debt. Adobe paid 14.8x

Acquisition 117

Acquisition Trends Software Revenue 117

Tom Tunguz

SEPTEMBER 20, 2023

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. This means for every sales and marketing dollar invested the company purchases an additional 60 cents of gross profit in the next period.

Trends 182

Trends Software Review Acquisition Pricing 182

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

SaaStr

FEBRUARY 20, 2023

And realistically, cut off any potential M&A acquisitions deals for even hundreds of millions of dollars. But one thing no one talked about was how the power and magic in recurring revenue can make a $100,000,000 exit magical if you are capital efficient. If your NRR is over 100%, that’s a kind of magic if you invest in it.

Acquisition 298

Acquisition Startup Business Model SaaS 298

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 230

AI Search AI Scale Headcount 230

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

NOVEMBER 4, 2021

In simple terms, the “Rule of 40” states a healthy SaaS company’s a) revenue growth rate plus b) profit margin should exceed 40%. . In equation form, Revenue Growth % + Profit Margin % > 40%. 2 drivers stood out as notable: Customer Acquisition Cost (CAC) and Churn.

SaaS 264

SaaS Technical Review Benchmarks Azure 264

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

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 228

Scale Strategy Scaling Outbound Sales Team 228

SaaStr

JUNE 17, 2023

In the ever-evolving landscape of SaaS, Venture Capital, Bootstrapping, and Valuations – understanding market trends and investment patterns is critical. We’ll explain Jason’s take on the recent market fluctuations, highlighting major deals that shaped investment patterns and their effects on valuation trends.

Venture Capital 214

Venture Capital Scale Technical Review Software Review 214

OPEXEngine

APRIL 26, 2022

Well, capturing as much total available market (TAM) makes growing your business through customer acquisition necessary. Fast growth SaaS companies under $50M in revenues have a median 87% increase in new customers a year. What is Customer Acquisition Cost (CAC)? But first, let’s define some critical elements in this equation.

Acquisition 59

Acquisition B2B Benchmarks SaaS 59

ChurnZero

SEPTEMBER 16, 2022

When a financial slowdown approaches, the smartest businesses look for areas where their investment has the best leverage. In good times, a lot of investments that a company makes are really focused on new sales. There’s two reasons why you want to be a revenue team rather than a happiness team. Episode highlights.

Customer Success 98

Customer Success Investment Churn Retention 98

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 245

Cloud Payments Software Review Payment Solutions 245

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

Techsnyder

DECEMBER 19, 2021

SAAS CEOs and CROs are always on the prowl for one thing for sure and that is about how do I increase my recurring revenue and profitability. If services are streamlined, canned and optimised they can be predictable and recurring sources of revenue turning the very challenge into opportunity.

Revenue 52

Revenue SaaS Acquisition Outsourced Development 52

Tom Tunguz

AUGUST 26, 2020

TTM Revenue, $M. Revenue Growth. At the time of IPO, Asana generates more revenue, $162M in revenue to Smartsheet’s $111M. Asana is also growing faster, 86% annual revenue growth vs. SmartSheet’s 66%. Asana generates about 2x the loss of SmartSheet as a percentage of revenue. SmartSheet.

Payment Solutions 363

Payment Solutions Payments Outsourced Development Payment Services 363

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. What does PLG bring to the table?

Business Model 247

Business Model SaaS Payments Payments Headcount 247