SaaStr

APRIL 26, 2023

Only 32% of Revenue From Websites. The majority of its revenue comes from ecommerce. Their pure website revenue, which they call “Presence”, is just 32% of their revenue. #2. 28% of their revenue from outside the U.S. Having said that, many SMB players were hit hard in 2022. 68% From Ecommerce.

Scale 208

Scale SMB Churn Pricing 208

SaaStr

SEPTEMBER 1, 2023

119% NRR from SMBs Profitable, and only burned $15m net to date 130,000 total customers There’s not much to not love here! But the metrics, especially for an SMB-focused SaaS business, are breathtaking. 14 Month CAC CAC (Customer Acquisition Cost) is one of those metrics there are about 10,000 ways to calculate.

Scale 206

Scale SMB Sales Hiring Interviewing 206

SaaStr

JULY 20, 2022

While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. ” But it’s also a reminder how hard it is to combine services, hardware and software and make money from SMBs. #3. A fairly standard SMB price point.

SaaS Payments 220

SaaS Payments Scale Payment Methods Payments 220

SaaStr

SEPTEMBER 17, 2023

LIVE from Annual Stage A Masters: How Revenue Leaders at Box, Calendly, and Lattice Created Sales Acceleration Moments The post Top SaaStr Content for the Week: Craft Ventures’ Founder & General Partner, QED’s Partner, Y Combinator’s Managing Director and lots more! The Next Best in About 5 Years.

Scale 199

Scale Management SMB AI 199

SaaStr

SEPTEMBER 22, 2022

At SaaStr Annual 2022, Mailchimp Co-Founder Ben Chestnut sat down with SaaStr Founder Jason Lemkin to answer questions about the two-decade journey to $1 billion in annual recurring revenue (ARR). Chestnut began by discussing the ins and outs of the acquisition by Intuit. The Deal With Intuit.

SMB 174

SMB Entertainment Acquisition Branding 174

Tom Tunguz

SEPTEMBER 13, 2016

When an SMB SaaS startup is young with quickly growing revenues, more of the same works. For some SMB SaaS companies, generating this kind of lead volume even at scale isn’t a challenge. There is no universal answer to which direction to pursue: remain in the SMB segment and cross-sell or move up-market, or both.

SMB 100

SMB Scale Startup Marketing 100

Andreessen Horowitz

APRIL 23, 2024

Both of you sell into SMBs, which is a notoriously difficult segment. One of the holy grails of SMB software is, how are you going to acquire customers? The opportunity is to leverage that trust factor to drive customer acquisition, and it has worked for us. Alex: Let’s dive into your business models.

Payments 75

Payments Forecasting Payment Services Payment Solutions 75

SaaStr

JANUARY 4, 2023

They had a bit of dip in growth as they worked to integrate the mega-acquisition of Auth0 — but then went right back to growth. Very Few Professional Services — Only 3% of Revenues. ProServ is only 3% of Okta’s revenues. International Revenue Steady at 22% of Revenues — and EMEA is strong.

Scale 262

Scale Headcount Sales Hiring SMB 262

SaaStr

NOVEMBER 16, 2022

It still has very strong NRR for a still muchly SMB and mid-market product at 135%, with no decline since the same 135% at $400m in ARR. #2. Free Cash Flow up from 3% of revenue at $400m in ARR to 10% at $550m in ARR. From $11m in annual revenue in 2017 to $500m+ in 2022. And a few other interesting learnings: #6.

Headcount 270

Headcount SMB Engineering Scaling 270

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 214

Scale Strategy Scaling Outbound Sales Team 214

SaaStr

DECEMBER 2, 2020

” as it now joins Salesforce in a 27B+ mega-acquisition. But Slack is growing revenue at 140% and its customer base is up almost as much, at 35%. 1,000+ $100k ACV Customers, 49% revenue from Big Customers. All 3 are holding relatively consistent enterprise/SMB ratios: 40% of revenue from outside U.S.

SMB 242

SMB Enterprise Cloud Retention 242

SaaStr

MARCH 23, 2021

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. The top SaaS companies are all at $400k+ in revenue per employee. ” #2. year-over-year.

Investment 222

Investment SMB Acquisition Cloud 222

SaaStr

NOVEMBER 28, 2022

From 2010 until 2015, the SaaS world was becoming more complex with the introduction of static bundles and recurring revenue as an addition to the annual/monthly subscription model. We are seeing more agile packaging and pricing methods, dynamic deals, ramp-up revenue, and consumption and usage. Mergers and acquisitions.

Scale 185

Scale Finance Sales Hiring Scaling 185

SaaStr

FEBRUARY 9, 2024

The first role that comes to mind is driving revenue and it’s probably within sales. They had been building toward an SMB audience, so hiring 50 people in sales against a product that wasn’t ready for a specific audience would’ve been a mistake. So, you might hire someone for inbound or outbound sales to meet that growth.

Scale 239

Scale Sales Hiring Sales Marketing 239

Clouded Judgement

APRIL 11, 2024

It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. Q4 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q4 starting with revenue.

Cloud 177

Cloud Software Azure AWS 177

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. If New Relic had even 120% NRR, it’s growth rate with the exact same rate of new customer acquisition would be 137% instead.

Scale 280

Scale Outsourced Development SMB Cloud 280

SaaStr

AUGUST 7, 2023

ARR stands for Annualized Recurring Revenue, although its real-world definition has evolved over time. As you’ll learn further down in this article, ARR now means any type of software-related revenue with 100%+ Net Revenue Retention (NRR), even if it’s not truly recurring. The only thing that mattered was revenue.

Metrics 178

Metrics SaaS Sales Hiring Finance 178

Clouded Judgement

JUNE 9, 2023

Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong. Very healthy new business (new customer) acquisition. Revenue multiples are a shorthand valuation framework. New customer growth seems to be picking up.

Trends 130

Trends Cloud Azure AWS 130

SaaStr

JULY 8, 2022

A Step by Step Guide to Revenue Growth with Mark Roberge, Harvard Business School. Half of Gorgias’ almost 10,000 SMB customers come from partners. The Things Nobody Tells You About An $8B Acquisition with Ryan Smith from Qualtrics. #21. A recent session from SaaStr Scale. #3. A niche session, but a strong one.

VP of Engineering 217

VP of Engineering Scale Outbound Sales Team SMB 217

SaaStr

APRIL 6, 2019

340 customers pay $100k+ a year, comprising 30% of their revenue. But it also gets 22% of its revenue from Very Small Businesses — customers with less than 10 employees. Zoom has 140% net revenue retention. It can be tempting to let the SMB side of the business go as you scale. Yes, it has big customers. ~340

SMB 224

SMB Acquisition Scaling Engineering 224

Clouded Judgement

DECEMBER 21, 2023

Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q3 ’23 revenue) / (Q3 ’22 revenue) - 1.

Cloud 177

Cloud Software Benchmarks Retention 177

Sales Hacker

APRIL 15, 2019

He also gives us a framework for how to move upmarket, and the requirements for taking a company from the SMB space all the way to the enterprise. Strategies for moving upmarket, and how to transition from SMB to enterprise. We have account executives, who are purely new business acquisition. What You’ll Learn. Moving Upmarket.

SMB 58

SMB Enterprise Scale VP of Engineering 58

SaaStr

DECEMBER 29, 2019

it wasn’t until later on in 2007 that we had enough revenue to create a large enough group of customers to go on a 10 Year Journey with. Enterprise deals are nothing like SMB deals, most especially over the long term. This is the one thing you can really bank on in SaaS and with recurring revenue. Even post-acquisition.

Scale 339

Scale Churn Construction SMB 339

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. SaaS Metric #1 – Annual Recurring Revenue (ARR). Revenue from irregular overages should be bucketed together, separately from contracted ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Clouded Judgement

SEPTEMBER 12, 2023

We will see this show up in revenue figures in a quarter or two. Regardless, as we round into Q3 we’ll start to “lap” the first tough quarters so it wouldn’t surprise me to see a number of companies accelerate their YoY revenue growth. ” Source: company filings Let’s get into some high level data.

Cloud 169

Cloud Software Benchmarks Retention 169

SaaStr

DECEMBER 17, 2019

Zoom is growing faster with SMB customers than anyone else before. A Step-by-Step Guide to Revenue Growth with Mark Roberge. The Things Nobody Tells You About an $8B Acquisition with Ryan Smith from Qualtrics. Ryan did a lot of press and PR after the acquisition, but we dug into the founder journey in some pretty unique ways.

Scale 132

Scale SMB Cloud Acquisition 132

Tom Tunguz

AUGUST 26, 2014

We will explore revenue growth, average revenue per customer, sales efficiency, payback periods, net income, gross margin and engineering spending. HubSpot has achieved amazing revenue growth in their first 7 years as a company growing by more than 12x from $5.7M in 2009 revenue to 2013 revenue of $71M - an 88% CAGR.

Benchmarks 108

Benchmarks SMB Metrics SaaS 108

Clouded Judgement

APRIL 12, 2023

.” This is not an indication of who I think will preform the strongest in the future, but a look-back on who preformed the best in Q4 (based on a formula I use that factors in many different financial variables) Q4 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q4 starting with revenue.

Cloud 161

Cloud Software Benchmarks Retention 161

FastSpring

DECEMBER 7, 2023

“This is everyday for me, so I love talking about it,” says Carl Hargreaves about mergers and acquisitions. As the Director of Corporate Development & Strategic Partnerships at WP Engine , Carl has worked on many acquisitions and partnerships, including brands like Flywheel, Perfect Dashboard, Block Lab, and recently, Delicious Brains.

Software Review 128

Software Review Technical Review Development Team Review Branding 128

Tom Tunguz

JUNE 12, 2014

To answer those questions, I’ve pulled together data from a basket of 46 publicly traded SaaS/Cloud companies and segmented them based on their average annual customer value (ACV) into three buckets: SMB ( =$10k to $100k). The median SMB SaaS startup spends significantly less on sales and marketing through year 4 of their lives.

Startup 100

Startup SMB Sales Hiring Acquisition 100

FastSpring

SEPTEMBER 2, 2020

Depending on what calculation you use, LTV can paint an honest picture of whether your customers are spending and staying long enough to cover acquisition costs and hopefully—make you a profit. Lifetime Value (LTV) is a metric that shows the average revenue generated by a customer before they churn. Tracks Your LTV/CAC Ratio.

Scale 128

Scale Payment Methods Payments SaaS Payments 128

Clouded Judgement

JUNE 20, 2023

.” This is not an indication of who I think will preform the strongest in the future, but a look-back on who preformed the best in Q1 (based on a formula I use that factors in many different financial variables) Q1 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q1 starting with revenue.

Cloud 161

Cloud Software Benchmarks Scale 161

Clouded Judgement

DECEMBER 20, 2022

This is not an indication of who I think will preform the strongest in the future, but a look-back on who preformed the best in Q3 (based on a formula I use that factors in many different financial variables) Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue.

Cloud 130

Cloud Software Review Software Benchmarks 130

SaaStr

SEPTEMBER 9, 2021

Bill.com has become an SMB powerhouse, with 120,000+ customers and a stunning $25B+ market cap. SInce IPO, they’ve grown to a stunning 50% of Bill’s revenues. #3. Channels matter in SMBs, too. But the accountant channel is high volume, SMB play. There are 6m SMBs that buy SaaS software. Go find them.

SaaS Payments 52

SaaS Payments Payments Payment Services Scale 52

Neil Patel

DECEMBER 14, 2021

This announcement is a testament to the hard work of our growing pool of talented employees as well as our major enterprise and SMB clients. We’ve increased our global workforce by 106 percent in the last year, expanded our presence in EMEA and Australia, and grew revenue by 169 percent. Our SMB Clients.

Technical Review 92

Technical Review SMB Sales Hiring Finance 92

SaaStr

SEPTEMBER 22, 2022

So when we first started writing about Bill.com at its IPO , it was a sleep SMB accounting product. Yes, that can’t last forever, and half of it was from acquisitions (see the discussion below). But yes, it’s the most incredible SMB growth story in SaaS we’ve ever seen. Yes, 158% growth at $800m in ARR.

SaaS Payments 49

SaaS Payments Payment Services Payment Solutions Payments 49

OPEXEngine

JUNE 23, 2021

The CAC Payback Period, also known as Months to Recover Customer Acquisition Cost (CAC), measures the number of months of subscription revenue it takes to recover the costs to acquire one customer. The basic way to calculate this metric is to divide CAC by Average Revenue per Customer Account or ARPA. Measuring Profitability.

Benchmarks 52

Benchmarks Acquisition SMB Subscription 52