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Try ripping out ServiceTitan when it’s running your entire HVAC business – from lead generation to invoicing to payroll. Lower Competition = Higher Prices In horizontal markets, you’re competing with 47 project management tools. Toast can charge restaurant-specific pricing. Predictions for H2 2025 and 2026 1.
API-First Revenue Model Unlike the subscription-heavy models of traditional SaaS, 70-75% of Anthropic’s revenue comes from API calls through pay-per-token pricing. This requires rethinking pricing, packaging, and revenue recognition. While Anthropic likely operates at 40-60% gross margins today (vs.
When SaaStr Fund made the first investment in RevenueCat back in 2018, nobody could have predicted that this “simple API for managing in-app subscriptions” would become the infrastructure powering 33% of all mobile subscription apps and reach a $500M valuation in 2025. ” required weeks of developer time to answer.
Valuation The Metrics : Fastest to $100M ARR in SaaS history (12 months) The Edge : AI-native IDE that doubles developer productivity The Model : $20-40/month per developer, 360K+ paying users Recent News : Revenue doubling every 2 months, unsolicited acquisition offers GitHub Copilot – $400M ARR The Metrics : 1.8M
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.
As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscription SaaS model since they only earn revenue when the customer is using the product. The SMB sales team was incentivized purely on logo acquisition rather than revenue.
SaaS pricing isn’t static – it’s a living strategy that grows with your company. In this article we dive into a playbook for pricing across different stages of company growth, inspired by Geoffrey Moore’s Crossing the Chasm. Tiered pricing models emerge to address these differences.
By Inga Broerman How Industry Consolidation is Reshaping Subscription Billing The subscription economy is on a path of rapid growth and transformation, projected to reach a $3 trillion valuation in 2024. Billing integration simplifies the implementation of these models, ensuring accurate tracking and invoicing.
As far as an expected timeline - typically companies launch their roadshow ~3 weeks after filing their initial S-1 (the roadshow launches with an updated S-1 that contains a price range). Access to Figma is sold as an annual or monthly subscription, per seat. BUT, in my opinion, this number doesn’t tell the whole story.
What if you could boost revenue without having to invest a small fortune in new customer acquisition? For example, CyberGhost VPN customers get a chance to purchase their other security tools, like a dedicated IP or CyberGhost Security Suite for Windows. These are available at the checkout at discounted prices.
By Inga Broerman The 2025 Blueprint for Scalable Growth in the Subscription Economy The subscription economy is entering a pivotal year. Trends like usage-based pricing , complex provisioning , industry consolidation , and evolving regulatory landscapes are reshaping how businesses operate and thrive.
Unlike traditional businesses, most SaaS businesses operate the subscriptionpricing model. Transparency : The company is open and honest about product prices, updates, and changes. For instance, satisfied customers are more likely to renew their subscriptions month after month with a subscription-based streaming service.
SaaS operates on a subscription model, making it easier to manage cash flow and reduce upfront expenses. Prioritize customer success, not just customer acquisition While getting new users in the door is important, retention is what drives predictable revenue and strong unit economics.
By Inga Broerman How High-Performing Subscription Businesses Maximize NRR For subscription-based businesses, Net Revenue Retention (NRR) is the ultimate measure of growth and sustainability. High-performing subscription businesses use NRR as a growth engine , ensuring that renewals and expansions outpace any losses from churn.
By Inga Broerman Building a Competitive Edge Through Channel Partnerships In an increasingly competitive subscription economy, channel partnerships have become a beacon for businesses seeking scalable growth and sustainable revenue streams. Billing software with advanced integration capabilities plays a pivotal role in enabling this.
By Inga Broerman Why Billing Automation is the Foundation of Scalable Growth In the dynamic world of the subscription economy , businesses face increasing competition and mounting customer expectations. Schedule a Demo Today The Challenge of Scalability in Subscription Management Scaling a subscription business is inherently complex.
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.
Whether to offer a self-service model or not depends on a few factors: the products starting price, the level of customization involved, and how much support new users need to unlock its full potential. Source: Softrs pricing page. Your sales targets should factor in both acquisition and retention. But how do you do that?
By BluLogix Team Product-Level Revenue Analysis for Strategic Pricing Product-Level Revenue Analysis for Strategic PricingPricing is one of the most powerful tools a business has to boost profitability, and understanding how each product or service contributes to revenue is crucial for setting the right pricing strategy.
For subscription-based businesses achieving consistent and predictable revenue growth is the holy grail. In fact, monthly recurring revenue (MRR) is one of the most important metrics subscription businesses should be aware of. It can also be used to calculate the customer acquisition cost (CAC) and gross margin.
However, their impact on profitability is not always straightforward, especially for industries like Managed Services Providers (MSPs) , Unified Communications-as-a-Service (UCaaS) , Software-as-a-Service (SaaS) , and Internet of Things (IoT) businesses, where recurring revenue models and complex pricing structures are common.
In this in-depth comparison, well explore Salesforce vs. HubSpot across features, ease of use, pricing, use cases, and more so you can determine which CRM is the right fit for your organization. Through numerous acquisitions (ExactTarget, Tableau, Slack, and more), Salesforce built an expansive ecosystem of cloud services.
Penetration pricing sounds like a no-brainer for new businesses: come in with the lowest price, attract customers, raise the price later, and watch your revenue grow. Let’s break down what penetration pricing really is, the pitfalls it can bring, and how to use it the right way. What is penetration pricing?
In this guide, well explore the best applicant tracking systems of 2025 , covering both cloud and on-premise options, their key features, pricing, pros/cons, and ideal use cases. Breezy HR Best Free ATS for Small Businesses Pricing: Key Features: Ideal Use Case: 2. What ATS is best for small businesses or startups?
How to use it: Break the complete user journey into stages: Acquisition, Onboarding, Activation, and Retention. Assign trackable events to each stage, such as “Account Created,” during the acquisition stage. However, the same wouldn’t make sense for subscription-based apps like SaaS or media platforms.
Great for small to medium teams with a pay-as-you-go pricing model. Quick Comparison Tool Key Features Pricing Ideal For Middleware Real-time alerts, root cause analysis Free tier; $0.30/GB Sara Cowie, Head of Customer Acquisition at Syncano , emphasizes the importance of these features: “Uptime and performance are vital to us.
The price tag on an AI software license is just the visible tip of the iceberg ( and surprising some come renewal time ). Without this bird’s-eye view, your SaaS landscape is often a fragmented mess of departmental purchases, forgotten subscriptions, and underutilized licenses. Why is this so important?
And with Buffer's pay-by-channel pricing model, I've been able to scale the services I pay for up and down based on what I need. Pricing: Free plan available. Pricing: Starts at $69/month. Pricing: Free plan available. Pricing: Starts at $19.79/month Pricing: $625 setup fee. All in all, Predis.ai
The major SaaS providers have announced another round of significant price increases for 2025, continuing a trend that’s putting pressure on enterprise software budgets across the board. After years of relatively stable pricing, these companies are leveraging their market positions to drive revenue growth through higher per-seat costs.
First IPO in 1999 First acquisition for $5.3 IPO private IPO acquisition is becoming a common path. Informatica acquired for $8 Billion! But founded … in 1993! Lemkin (@jasonlk) May 27, 2025 Salesforce just agreed to finally acquire Informatica for $8 Billion after trying for some time. Classic buy-fix-sell.
By Inga Broerman The Renewal Blind Spot: Where Subscription Businesses Lose the Most Revenue Renewals should be a source of predictable, recurring revenue yet for many subscription businesses, they are a pain point filled with inefficiencies, missed opportunities, and revenue leakage. Delayed payments and unpredictable revenue.
Um, and it’s going to be interesting to see how qualified plays out well on, well on its way for either another acquisition or IPO or whatever you decide to do with it. It was something that like you dream of actually being able to be part of an acquisition and being part of that movement. The cloud and the SaaS movement.
Rowe shared that Stax actively engages with its partners through initiatives like their Partner Advisory Council and is even planning a joint hackathon with partners to explore AI’s potential in streamlining payment experiences and broader business operations.
Customer lifetime value (CLV) and customer acquisition cost (CAC) : Help gauge the financial benefits of improved data quality. Case Studies Learn best practices from our customers. Developer API Documentation, API, Examples, FAQ and more. Case Studies Learn best practices from our customers. Sales efficiency metrics are also critical.
Go to Reports > Acquisition > Traffic Acquisition to see where your website traffic is coming from, and how much of it is due to organic search. Conversion Rate Your conversion rate refers to the number of visits from organic search results that ended in an action like a free trial sign-up, sale, form fill-out, or subscription.
Integrating price tracking to help users buy at a discount. Google Launches New AI Ultra Subscription AI Ultra is a new subscription that grants users access to “ the best of Google AI.” YouTube Premium 30 TB of storage This subscription is already available for $249.99/month. Trying on clothes virtually.
Once usage stabilizes, you can introduce premium tiers or subscriptions that add value without alienating users. Netflix demonstrates this progression with tiered pricing, from $6.99 Set up systems to continually track how app users behave, user retention , lifetime value , acquisition cost , and churn to measure success.
A high retention rate means you earn more from each user while cutting acquisition costs. If you fail, your users will surely ditch you for a competitor with better features or pricing. It is a great example of personalizing the user experience while increasing new user acquisition. How do you calculate user retention?
Pricing: 14-day free trial available; paid plans start at $249/month with custom enterprise tiers. The pricing might not suit smaller teams just getting started. Pricing: Free plan available (up to 1 million events/month); Growth and Enterprise plans are usage-based. Pricing: Free plan available (up to 50K MTUs).
The renewal/upsell email A renewal email shows up when a paying customer’s subscription is about to renew, and you want to remind them of it as well as nudge them toward a higher-value offer. Also, the copy positions yearly billing with non-financial benefits such as “no more missed payments, no more worries.”
Monetization potential: If users spend significant time within your app but dont convert, that might indicate that your pricing or checkout flows need rethinking. Now, what if your company’s goal was to increase paid subscriptions? Keeping an eye on retention also helps reduce acquisition costs.
Annual recurring revenue (ARR) is an essential subscription metric that shows how much recurring revenue you can expect, based on your yearly subscriptions. Strengthening ARR growth, therefore, is an objective of every recurring revenue business. Get creative with your offerings.
In this week’s Workshop Wednesday, RevenueCat CEO Jacob Eiting and Growth Advocate David Barnard share their annual State of Subscription Apps report with us. So, let’s look at the state of subscription apps and how B2B SaaS can learn from it. Churn is much higher on consumer subscriptions, but you have higher expansion revenue.
Whether you are a startup owner, a manager of a growing business or the CEO of an established company, you might find yourself asking questions like “ Should our SaaS subscription model be monthly, annually or both ?” or “ What are the best tips I can get in terms of annual vs monthly subscription models ?”.
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