Tom Tunguz

AUGUST 7, 2022

Since these transactions’ details are public, we can use them to infer how the private software market values companies. In the last decade, a software company’s revenue growth correlated most highly to its valuation multiple. Curiously, free-cash flow margin correlates to forward-revenue/EV multiples at -0.996.

Acquisition 302

Acquisition Pricing Startup Software 302

SaaStr

APRIL 24, 2022

The Private Equity Math of 1+1=3 in SaaS Acquisitions. SaaStr 545: Marketing to Developers: Why Happy is Our Hack with DigitalOcean CMO Carly Brantz and SaaStr GM & SVP, Marketing Amelia Ibarra. Revenue Marketing: Build for Scale with Podium’s SVP, Revenue Marketing Jess Weimer.

Sales Hiring 268

Sales Hiring Revenue Scale SMB 268

Tom Tunguz

FEBRUARY 25, 2023

Similar questions have surrounded Microsoft’s acquisition of Blizzard; The US Department of Justice seeks to unwind the Google/DoubleClick merger ; British regulatory bodies forced Facebook to reverse its Giphy acquisition. The FTC reportedly will sue to stop Adobe from acquiring Figma. So can Austria - a pickled red herring [1].

Acquisition 207

Acquisition Startup Government Technical Review 207

SaaStr

JUNE 27, 2022

Well there’s one big difference: the revenue multiple. So put differently, Anaplan was signed when the market was still strong, but closed in June when the market had cooled. And Zendesk growing as fast as Anaplan at more than twice the revenue is “better”. Zendesk is doing $1.6B in ARR, growing 30%.

Acquisition 305

Acquisition SaaS Pricing Revenue 305

Tom Tunguz

JANUARY 4, 2023

The US startup M&A market in Q4 2022 was one of the quietest in the last 20 years. The total quantity of acquisitions demonstrated greater resilience shrinking by 56%, while the median acquisition value tumbled from $81m to $22m (-72%). It’s no surprise Q4 2022 acquisition value plummeted. in Q4 2022.

Startup 322

Startup Marketing Acquisition Pricing 322

User Pilot

NOVEMBER 24, 2023

Which one is better, customer acquisition vs retention? This article will examine customer acquisition and retention and determine which one you should focus on. TL;DR Customer acquisition attracts and converts new customers through marketing and sales efforts to expand the customer base and drive revenue growth.

Acquisition 101

Acquisition Retention Customer Lifetime Value Churn 101

Tom Tunguz

JUNE 22, 2022

For web3 startups to thrive, their marketing teams will need to spend marketing dollars to acquire users efficiently. Existing marketing technology won’t work for web3. Web2 marketing employs the cookie as the primary identifier of a person, not a wallet. There’s no bridge between web2 & web3 data, yet.

Marketing 353

Marketing Blockchain Advertising Government 353

SaaStr

JULY 19, 2023

Markets have been all over the place, layoffs occurred, and investors weren’t funding as much as usual. In a special workshop, Sam shares advice on how to spot bottlenecks, reallocate the right resources, and grow revenue in 2023. While lost deals have an impact, the real revenue bottleneck may lay elsewhere in the buyer journey.

Revenue 204

Revenue Acquisition Technical Review Systems Review 204

SaaStr

AUGUST 19, 2020

Q: Which merger and acquisition trends, if any, do you expect to unfold in the next 12 months? Not some tiny startup that might take years to get to material revenue or market share. If you are worth $20b-$1T+, you often don’t want to wait for a small acquisition or internal initiative to bear fruit.

Acquisition 265

Acquisition Cloud SaaS Pricing 265

Tom Tunguz

JUNE 11, 2019

in revenue, growing at 29%. Let’s put this acquisition in context. First, it’s the third business intelligence related acquisition in the past month. Google announced the Looker acquisition last week. in acquisitions suggests that 2019 will be similarly active as 2018, which saw $66B of acquisitions.

Acquisition 253

Acquisition Pricing Startup Software 253

Clouded Judgement

MARCH 22, 2024

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. Many investors laugh (and some rightly so) at the fact that software companies’ valuations are often described as a multiple of revenue.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

NOVEMBER 3, 2023

We’ll share the answers in today’s brand new episode of CRO Confidential, where our host Sam Blond, partner at Founders Fund, sits down with Toast CRO, Jonathan Vassil to talk about their proven customer acquisition strategies that led to its record-breaking growth. That means they still have 85% of the market left to tackle.

Payment Methods 186

Payment Methods Acquisition Scale Payments 186

Subscription Flow

APRIL 18, 2024

How do you keep increasing your revenue in a marketplace that has reached its point of saturation? 2. Enhanced Brand Advocacy and Word-of-Mouth Marketing Likewise, happy customers are likely to spread good word of mouth for your business and, in doing so, will effectively be providing you with free marketing.

Engagement 94

Engagement Customer Lifetime Value Revenue Subscription 94

SaaStr

SEPTEMBER 25, 2023

Theoretically, the relationship between sales and marketing should be easy –– after all, these teams are responsible for pulling in more business and increasing revenue. But the thing that we really need to ensure is that our sales and marketing teams are aligned on the core metrics.” But there is hope.

Enterprise 251

Enterprise Marketing Sales SaaS 251

SaaStr

JANUARY 24, 2024

What should you look for in an Enterprise rep vs. a Mid-Market rep? 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 a product standpoint, you might think you have product market fit.

Scale 217

Scale Sales Hiring Scaling Revenue 217

SaaStr

FEBRUARY 7, 2024

In today’s world, there’s a clear shift in what founders, boards, and investors are all after — scalable, low-CAC (customer-acquisition cost) growth strategies. The data above shows it’s a customer acquisition cost on average of $1.05 How to use community as a driver of product-led growth. vs. $1.80, which is a big difference.

Scale 216

Scale Sales Hiring Strategy Marketing 216

User Pilot

JULY 30, 2023

Customer retention vs acquisition cost: Which metric matters more? Thus, striking the right balance between acquisition and retention costs significantly improves profitability and sustainability. TL;DR Customer acquisition is the process of attracting and converting prospective users into paying customers.

Acquisition 94

Acquisition Retention Customer Lifetime Value User Experience 94

SaaStr

DECEMBER 4, 2023

With the turbulence in the market in 2023, sales cycles have only been getting longer and a lot more complicated. At this year’s SaaStr Annual , CEO and co-founder of Capchase Miguel Fernandez and Director of Marketing Rose Johnson share five tips for getting sales right in any market. to find out what was going on.

SaaS Payments 208

SaaS Payments Payment Services Payments Payment Features 208

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 194

Sales Hiring Underperforming Technical Team Revenue Sales 194

ProfitWell

SEPTEMBER 16, 2019

During our conversation, Hiten and I walk through how freemium acts as an acquisition strategy as opposed to a revenue driver, how product teams need to think about things differently, and why it’s important to understand customer psychology when building your own freemium product to make everything work together. Subscribe and Listen.

Acquisition 99

Acquisition Revenue Scale Retention 99

SaaStr

JULY 13, 2022

Finally, growth occurs when sales, product, and marketing can come together. 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. Most people think ?

Scale 212

Scale Sales Hiring Revenue Marketplace as a Service 212

SaaStr

JULY 21, 2022

– IPO market frozen. At this point, any founder in SaaS should know the public markets have fallen 50% or so from the peaks in 2021. At this point, any founder in SaaS should know the public markets have fallen 50% or so from the peaks in 2021. The IPO market is mostly frozen. – M&A way down.

Marketing 252

Marketing Scale Acquisition Pricing 252

Totango

APRIL 4, 2024

Revenue retention hinges on the collaborative efforts of CS and sales teams as they collectively shepherd customers throughout the lifecycle journey, from acquisition to retention and expansion. Share responsibility: CS and sales both need skin in the game “Who’s in charge of sustainable revenue growth within an organization?”

Customer Success 89

Customer Success Retention Revenue Sales 89

SaaStr

FEBRUARY 9, 2024

In this latest episode of CRO Confidential , Sam Blond, Partner at Founders Fund and former CRO at Brex, sits down with the CRO of Zapier, Giancarlo Lionetti (GC), to chat about Product-Led Growth (PLG) and Go-To-Market (GTM). In a product-led growth strategy, the product serves as the focal point of your company’s marketing and strategies.

Scale 251

Scale Sales Hiring Sales Marketing 251

Tom Tunguz

OCTOBER 27, 2018

Over the weekend, IBM announced the largest software acquisition of Red Hat, an open-source software company, for $35B. It is the largest software acquisition in history, and the third largest technology acquisition (Dell/EMC at $67B and JDS/SDL for $41B were both larger hardware mergers). This price values the company at a 10.6x

Acquisition 203

Acquisition Application Development Software Engineering Pricing 203

SaaStr

APRIL 4, 2023

If you don’t want your company defeated by change, you need to adapt your Go-To-Market strategy at every stage of growth. Managing Partner of CIPIO Partners, Rolan Dennert, shares how companies need to readjust and rethink GTM fit — and even product market fit — from time to time. This is true in life and business. It’s inevitable.

Scale 220

Scale Strategy Scaling Outbound Sales Team 220

Tom Tunguz

MARCH 19, 2018

The company generated $297M of revenue in 2017 at a 73% gross margin, and grew by 58%. Salesforce is acquiring the business for an astounding 21x enterprise value to trailing twelve months revenue multiple - nearly 2x the next closest. Year of Acquisition. Transaction. Price ($M). TTM Rev ($M). Growth Rate. Gross Margin.

Acquisition 189

Acquisition Marketing Enterprise Revenue 189

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. Offering personalized onboarding experiences to reduce the need for additional acquisition efforts.

Acquisition 85

Acquisition Benchmarks Customer Lifetime Value B2B 85

SaaStr

DECEMBER 13, 2023

Customer Count Growth Driven in Large Part by Acquisitions There are only so many big banks to sell to, and nCino’s core customer count has grow slowly but steadily from 335 in 2021 to 428 today. But new products from acquisition have fueled the overall customer count growth to 1,858. #2. Let’s dig in. A lot to learn!

Scale 295

Scale Banking Acquisition Cloud 295

Tom Tunguz

JANUARY 28, 2024

The fastest growing software category in the public markets is security. Security companies as a group average 29% expected revenue growth in 2024, compared to 23% for Data (or DaaS which stands for data-as-a-service). Data follows. Fintech & SaaS (horizontal) average ten percentage points fewer expected growth.

Software Review 288

Software Review Software Finance Acquisition 288

SaaStr

FEBRUARY 20, 2024

Gusto is a high-velocity, high-scale acquisition and expansion engine, and one we can all learn from. In a recent Workshop Wednesday, Tolithia Kornweibel, CRO, and Jamie Edwards, Head of Go-to-Market Operations and Tools, share how Gusto maximizes revenue so that you can do the same.

Scale 202

Scale Sales Marketing Construction 202

Practical Advice on SaaS marketing

AUGUST 1, 2020

To answer that question – how much should we spend on marketing - first you need to answer a second question – how much revenue are you generating from your marketing. To know how much you should be putting into marketing, you need to know how much you’ll be getting out of it. Yes, SaaS marketing can be difficult.

Marketing 152

Marketing Customer Lifetime Value Social Media Acquisition 152

SaaStr

DECEMBER 30, 2022

You need to identify a niche in the current market, make yourself known, understand your main differentiators, and offer your users a ton of value for their money. DigitalOcean has done that and grown beyond $150M in revenue in Q3 2022. Market understanding. Instead, focus on understanding your target market. .

Scale 189

Scale Scaling Revenue Enterprise 189

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 98

Acquisition Retention Churn Metrics 98

SaaStr

MAY 10, 2022

He highlights the three key strategies that helped TripActions scale and boost their revenue. By looking for opportunities to adapt and support your customers, you can shift the way you go to market and maximize your growth potential. Liquid is a travel and expense management tool that has accelerated market penetration.

Travel 194

Travel Revenue Underperforming Technical Team Scale 194

Sales Hacker

FEBRUARY 27, 2024

Amanda Cole serves as Chief Marketing Officer, leading the execution of the company’s marketing strategy to drive further business demand and brand awareness. She previously served as the company’s Senior Vice President of Global Marketing, having joined in January 2021 through the acquisition of Exponea.

AI 89

AI Marketing Advertising Finance 89

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