Expect A Lot More $2B+ Acquisitions in SaaS and Cloud

SaaStr

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. You want that revenue and that customer base now.

How to prepare your startup for acquisition

Chart Mogul

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. Every stage of the startup acquisition process – and I mean every stage – is a negotiation. Monthly Recurring Revenue (MRR).

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Freemium: It's About Acquisition, Not Revenue

ProfitWell

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. Building a freemium product requires a lot of forethought to keep your infrastructure costs low since you’re not deriving revenue from customers until they upgrade.

Is revenue operations just another word for sales operations?

InsightSquared

During a recent analysis of the available “operations” jobs on LinkedIn, we discovered a significant number of “revenue operations” jobs — 59,110 to be exact. It sparked the question, “Is revenue operations just another word for sales operations, or are the roles fundamentally different?”. We spoke to several operations professionals to help us better define revenue ops, and understand how the role fits into an organization relative to sales ops.

The Revenue Leader's Guide to Prospecting

Speaker: Christopher Ryan, Founder and CEO of Fusion Marketing Partners

Sales & Marketing departments that work together guarantee higher acquisition, better nurturing, and more effective sales. Join Christopher Ryan for this insightful webinar, presenting the wide funnel lead nurturing model. Don't miss out on this opportunity to get your teams working together and your revenue performance optimized.

Aligning SaaS Customer Acquisition

Chaotic Flow

If the multi-tenant, cloud-based technology isn’t enough, there’s the recurring revenue model which creates all kinds of challenges from accounting to sales compensation to funding. SaaS customer acquisition should focus on maximizing available market penetration, not increasing available market size, and to do that you have to have a very clear picture of your target SaaS customers. SaaS businesses can be overwhelmingly complex.

Driving SaaS Customer Acquisition w/Success Metrics

Chaotic Flow

Most SaaS businesses begin their journey down the SaaS metrics path by tracking recurring revenue in relation to customer acquisition costs. SaaS profit = current customers x ( avg recurring revenue – avg recurring cost ) – new customers x avg acquisition cost. Is it possible to apply SaaS customer success metrics to customer acquisition? SaaS customer acquisition is merely SaaS prospect success. Reducing Acquisition Costs through Metrics.

How to Calculate Customer Acquisition Cost (CAC)

OPEXEngine

Today we’re taking a deep-dive into one of the most crucial SaaS metrics around: customer acquisition cost (CAC). HOW TO CALCULATE CUSTOMER ACQUISITION COST. Customer acquisition cost is designed to tell you how much you need to spend to acquire a single new customer. For example, if you spent $5,000 apiece on sales and marketing in a given month, and closed 10 new customers over that same time period, that month’s Customer Acquisition Cost would be $1,000.

Customer Acquisition: What Everyone Gets Wrong in 2019 [Guide]

ProfitWell

What is customer acquisition? Customer acquisition is the process of gaining new customers. Customer acquisition is one of the most popular growth levers for SaaS businesses because it is the most literal way to grow your customer base. Acquisition for a SaaS company means signing up new, paying customers. Additionally, acquisition only refers to the act of getting a customer to join. Factors influencing a customer acquisition strategy.

Forrester & SiriusDecisions Acquisition: Ripple Effects for Chief Revenue Officers Everywhere

Sales Hacker

Forrester will help bring SiriusDecisions’ data and consulting tools to new verticals while SiriusDecisions will, in turn, add $100MM in revenue in 2019 and double Forrester’s potential market in strategy from $20B to $40B by opening up B2B industries. The acquisition highlights a number of important strategic considerations for CRO’s and sales leaders everywhere. First, this acquisition highlights the need to be able to reach new verticals and new roles.

New Study: 2018 State of Embedded Analytics Report

Customer success, not field sales, drove the most revenue. Embedded analytics also helps companies master efficient customer acquisition and retention. In terms of customer acquisition and retention, embedded analytics unquestionably boosts business. more revenue opportunities.

SaaS Marketing | Accelerating Customer Acquisition

Chaotic Flow

SaaS marketing professionals know that customer acquisition is the name of the game. What they generally don’t know is that sustainable SaaS growth requires accelerating customer acquisition. The first post in this series introduced the three fundamental levers of SaaS growth: customer acquisition, customer lifetime value and viral customer network effects. The fundamental goal of SaaS marketing is to remove buyer roadblocks to accelerate customer acquisition.

Become a Revenue Architect (and Level Up) With a Revenue Engine Framework

Sales Hacker

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. Newly minted Chief Revenue Officers are what I like to call revenue architects.

Micro Startup Acquisition: The Definitive Guide to Buying and Selling Small Startups

Neil Patel

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.

InsightSquared Acquires Olono, Answers Revenue Teams’ Call for Real-time Actionable Intelligence And Receives Additional Funding

InsightSquared

Combination of leading revenue intelligence solution with activity data capture and next best action sales engine offers industry’s most complete platform to drive predictable growth. 3, 2019 – InsightSquared , the leading provider of revenue intelligence solutions, has acquired Olono, a leader in sales activity management. We’re taking the sophisticated revenue intelligence solution trusted by thousands of users today, and now bringing in over 80 new data sources.

What is the subscription revenue model? | ProfitWell

ProfitWell

The subscription revenue model is hardly new. It’s simple: the subscription revenue model benefits both customers and companies. Meanwhile, companies offering subscriptions can scale with confidence, with predictable revenue and deeper relationships with their customer base. But before you do, let’s take a look at some of the basics of the subscription revenue model and why it works across such a wide range of businesses. What is the subscription revenue model?

Retention marketing strategies that boost revenue

Vero

The benefits of retention marketing include: Increased revenue . By planning all marketing with the end goals of retention, expansion, and advocacy, you can make decisions that have long-term customer benefits, not just cheap acquisition wins.

Retention marketing strategies that boost revenue

Vero

The benefits of retention marketing include: Increased revenue . By planning all marketing with the end goals of retention, expansion, and advocacy, you can make decisions that have long-term customer benefits, not just cheap acquisition wins.

Customer acquisition vs. retention: Which is best for growth?

ProfitWell

Customer acquisition vs. customer retention—which one is better? Nevertheless, many companies focus the majority of their time and resources on acquisition. Let's dive into the details of customer acquisition and retention, and see if we can answer that question. What is customer acquisition? Put simply, customer acquisition is the process of gaining new customers. Acquisition and retention: the two key drivers of growth. Acquisition is more expensive.

How to Make User Acquisition Practically Free with Lambda School (Video + Transcript)

SaaStr

There’s a little bit of work to do still, but you know, tonight the title of my talk is how to make user acquisition practically free. So I have thought for a really long time, and I wrote a book about this, but the more I think about how to drop the cost of user acquisition, the more clear it becomes to me that it’s not about the typical model that people have in their mind when they’re thinking about this, and the typical problem set that people are trying to solve.

What is customer acquisition cost and why does it matter?

Inside Intercom

How to think about costs in your customer acquisition strategy. Imagine you’re coming up on the busiest season of the year, and you’ve been conducting an experiment with your ads to see which will generate the most revenue. If all you care about is optimizing for customer acquisition, you might think all five ads were created equal and allocate your budget accordingly. What is Customer Acquisition Cost (CAC)? How Customer Acquisition Cost (CAC) works day-to-day.

Customer Acquisition Spending: Lessons from Workday

Practical Advice on SaaS marketing

Specifically, it illustrates the need for software-as-a-service (SaaS) companies to spend money - lots of it - on customer acquisition. In its early years, Workday spent well in excess of its annual revenues on sales and marketing. times more on customer acquisition than annual revenues, and in 2007 it spent nearly 18 times more than annual revenues. Strong customer lifetime revenues : Most of Workday's customers are on 3-5 year contracts.

Disrupting the Desk Phone: How and Why We Made a $50M Acquisition with Dialpad (Video + Transcript)

SaaStr

Thanks so much everyone for joining us for our fireside chat today, disrupting the desk phone: how and why we made a $50 million acquisition. But even just this past week, I learned so much more of the inside scoop of this acquisition, and that’s why we’re really excited to share more today, both about why some acquisitions … A lot of them you don’t hear ever of how they turn out. And when I was at Google, we did a couple acquisitions.

Customer retention: the foundation of acquisition and growth

ProfitWell

Acquisition is the weakest growth lever. We studied the levers—acquisition, retention, and monetization—of 512 SaaS companies. We found that monetization and retention have much higher revenue impacts than acquisition when considering the same level of impact across each growth lever. While you may have the best acquisition process in the business, if your retention is terrible then it’s all worthless. How do we know this?

The Things Nobody Tells You About An $8B Acquisition with Ryan Smith from Qualtrics (Video + Transcript)

SaaStr

Join Qualtrics Co-Founder and CEO alongside SaaStr Founder and CEO Jason Lemkin as Ryan reflects on the survey software maker’s acquisition by SAP this year. Ryan Smith: The backstory here is we turned down an acquisition offer for $500 million in 2012. So it took him 10 years to get to 30 million in revenue. Brand experience, measuring people’s brands, employee experience, it’s been $10 billion in acquisitions in that space and we’re kicking butt.

The Inside Story of How Trello’s Marketing Team Evolved After the Atlassian Acquisition

OpenView Labs

Overnight transformation through acquisition. “We We were transitioning from being 100 percent growth oriented to being revenue oriented. At the time of the acquisition, the Trello team was about 120 people and Atlassian employed more than 2,000 people.

SaaS acquisitions can be tricky

Practical Advice on SaaS marketing

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. One reason behind the acquisitions of software-as-a-service (SaaS) companies is the high cost of sales and marketing. Under the SaaS business model, companies pay for sales and marketing now, but don't collect revenues until later.

What is revenue optimization? Using pricing to optimize revenue

ProfitWell

Revenue is good. Lots of revenue is great. Optimized revenue is better. Because the world of e-commerce is so restless, as soon as your company finds itself bringing in steady revenue, the first question anyone will be asking is: How can we make this performance even better ? The better answer, in fact, is to optimize the revenue you’re already bringing in. Revenue optimization, though, is not as simple as flipping a switch. What is revenue optimization?

SaaS acquisitions: It's about money and genes

Practical Advice on SaaS marketing

Another week, another software-as-a-service (SaaS) acquisition. To be more accurate, it's really "another week, another four SaaS acquisitions." Among the more prominent purchases, Oracle bought Vitrue, following its acquisitions of Taleo and RightNow. billion, while it's still digesting its earlier multi-billion acquisition of SuccessFactors. When they purchase SaaS companies, part of what the buyer gets is a revenue stream.

Three Observations About the Adobe/Marketo Acquisition

Tomasz Tunguz

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. trailing twelve months, the third highest multiple for large software acquisitions. In fact, relative to acquisitions of software companies growing at similar rates, at $4.75B, Third, the multiple expansion in the SaaS market continues, and it’s incredible.

Red Hat's Acquisition - A Triumph of Open Source

Tomasz Tunguz

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). Three of the largest software acquisitions of the last ten years have been open source. enterprise value/trailing twelve month revenue multiple.

Customer Acquisition Cost: The Secret Weapon of Successful Startups

Chart Mogul

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). What is the Customer Acquisition Cost? CAC stands for customer acquisition cost. Gross margin = Revenue – COGS.

Customer Acquisition: What Are the Most Crucial Product Marketing Activities?

OpenView Labs

Welcome to part two, focused on Customer Acquisition. Customer Acquisition. Customer Acquisition. Now we are moving on to Customer Acquisition. Especially since typically more customers equals more revenue. These four areas of focus are key during the Customer Acquisition phase. The post Customer Acquisition: What Are the Most Crucial Product Marketing Activities?

Seven Strategic Rationales for the Microsoft/Github Acquisition

Tomasz Tunguz

It’s a massive acquisition at a massive price relative to other software acquisitions. The Skype acquisition was also about identity, consumer identity. This acquisition capstones the commitment. Mix the two, chill, and shake, and you have a new billion dollar revenue business unit for Microsoft. Last week, Microsoft acquired Github for $7.5B. Why is Microsoft willing to pay so much? Developer identity. Identity has been critical to Microsoft success.

How Will DiscoverOrg’s Acquisition of ZoomInfo Affect Sellers?

Sales Hacker

A few months ago we wrote about Zoominfo’s acquisition of Datanyze in an effort to strengthen its sales intelligence engine. This acquisition also further validates a key theme we mentioned a few months back with the previous acquisition: we’re continuing to head into a heavy period of sales stack consolidation and more mergers and acquisitions are going to happen amongst players. The post How Will DiscoverOrg’s Acquisition of ZoomInfo Affect Sellers?

Teamwork is Turning Its Partner Program into a Powerful Acquisition and Retention Tool

Chart Mogul

In 2020, Ryan and the team plan to expand the Partner Program and using it as an acquisition channel as well. Ryan admits his work would be much harder if other people on the team didn’t trust the numbers; luckily, there’s buy-in from the C-level and everyone at the company treats ChartMogul as the single source of truth when it comes to revenue data. Customer Stories acquisition retention saas

Navint + Statera. Modernizing Lead-to-Revenue Business Operations.

Navint

We are very excited to announce Navint’s strategic acquisition of Statera, a leading quote-to-cash implementation provider and Salesforce implementer. The acquisition not only doubles Navint’s size. Insight home Lead-to-Revenue Salesforce Billing Salesforce CPQBy Jim Martindale, CEO of Navint If you are a regular reader of our blogs, you know we have been examining the Subscription Economy for some time. Now it’s time to put words to action.

Recurring revenue: drive business growth with simple metrics

ProfitWell

Recurring revenue is the lifeblood of subscription companies, and for good reason. Finally, recurring revenue gives the company a sense of predictable revenue and compounding growth. Implementing a recurring revenue model requires enabling a data-driven process and understanding the axes through which SaaS metrics impact your business. What is recurring revenue? Recurring revenue is revenue continuously brought in by customers who are on a subscription.

Why Amazon's Acquisition of Whole Foods Matters for Startupland

Tomasz Tunguz

Amazon’s acquisition of Whole Foods is notable for many reasons. Third, the acquisition underscores the importance of physical retail even to the largest American ecommerce giant. However, the most interesting part of this acquisition is that it marks the current apotheosis of technology’s impact in the broader economy. But, Amazon’s acquisition of Whole Foods is the reverse: a leading technology company buying a leader of a traditional industry.

Navint + Statera. Modernizing Lead-to-Revenue Business Operations.

Navint

We are very excited to announce Navint’s strategic acquisition of Statera, a leading quote-to-cash implementation provider and Salesforce implementer. The acquisition not only doubles Navint’s size, but more importantly empowers us to provide solutions to the critical challenges that today’s recurring-revenue organizations consistently face. By joining with Statera, we will empower our enterprise customers to transform and modernize their complete lead-to-revenue operations.