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So Jamin Ball of Altimeter has a great summary of the cumulative revenue growth of all public SaaS companies … and it’s not a great story: Aggregate net new ARR added in Q1 from the software universe isn't looking good! Aggregate quarterly net new ARR added across the cloud software universe dropped to just $1.65
The overall software universe quarterly YoY growth has come down meaningfully from highs, but has started to stabilize. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. Some software companies also have seasonality in the “payback.”
What drives the acquisition market of startups? In the last decade, the total number of venture backed software M&A by count has remained relatively constant. Nevertheless, there are huge differences between the total value created by software M&A annually. It’s the big deals. X 2015 20.1% - 2016 43.0%
I reviewed the roughly 560 US softwareacquisitions under $400m since January 1, 2020. ServiceNow tops the list with 5 acquisitions. Recruiter.com prefers small acquisitions: 4 purchases during the period, totalling less than $12m in value. Number of Acquisitions. To answer the question. So did Medallia.
In today’s complex business landscape, treating payments as just a software feature is a missed opportunity for significant growth and customer acquisition. Your payments integration is more powerful than you think. With the right partner, payments can become a strategy that leads to competitive advantages.
Yesterday, Broadcom announced it will acquire VMWare for $70b, the largest softwareacquisition in history. This merger also suggests a wave of acquisitions may punctuate 2022, in particular, take-privates. Software companies haven’t been this cheap to buy for a decade. before the acquisition. Growth Rate.
He summarized the M&A (acquisitions) of The Top 10 Software Acquirers. The Top 10 Software acquirors’ M&A activity is down -90% or more from 2021. This makes M&A (acquisitions) less attractive. A record low. See above from Thomasz. are still buying big SaaS companies. Vista just bought Smartsheet for $8.4
This isn’t feature addition—it’s fundamental workflow replacement that’s compressing overall software spend. The Disruption Math Can Be Brutal : In contact centers, AI replaces 40-50% of human agents but only increases software ACV by 50%. Consolidation Wave Incoming : Mature markets consolidate. 150 billion.
The acquisition is notable for three reasons. Third, it’s the most substantive acquisition to announce this year after Figma’s announced its sale to Adobe. Third, it’s the most substantive acquisition to announce this year after Figma’s announced its sale to Adobe. Average Software Public Value.
Zoom, Stripe, and Airtable are all examples of software companies with strong PLG strategies. As PMs, we all know the importance of building a successful product-led growth strategy. But what else do they have in common? What features do their strategies have that allow them to see continued success in this ever-changing market?
This time, on Mergers & Acquisitions. My biggest take-away: there are barely more than 50 acquisitions of $50,000,000 or more, at least disclosed one, in software of U.S.-based The post There Are Only ~58 Acquisitions of $50m+ or More in Software a Year per Theory Ventures appeared first on SaaStr.
And it reminded me of a stretch when over 6 months or so, I met with a series of entrepreneurs that turned down pretty attractive acquisition offers, relatively early in their lifecycle: SaaS Co. #1 Anyone can build software these days. Every Big Tech company has a budget for sub-$100m acquisitions. Vaguely. But Not Really.
This year, private equity firms have acquired five public software companies, totalling $38b in value. Since these transactions’ details are public, we can use them to infer how the private software market values companies. The more free cash the company produces, the lower the acquisition multiple. Thoma Bravo.
Tableau sells data visualization software and the team has built an incredible business. 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. We analyzed the S-1 in 2014. The $23.9B
This gets more challenging when you have stakeholders who aren’t the ones buying the software. There was no software yet. How to Make an Acquired Second Act Work In 2021, BILL completed its acquisition of Divvy , a Leader in Spend Management for SMBs. acquisition. “It does start at the top,” René explained.
For the subsequent ten years in software, we’ve optimized every little bit of how we sell it. But today, it’s different because the kinds of software we sell aren’t the same. Six months ago, security was the number one prohibition preventing businesses and software companies from buying AI. It isn’t predictable.
Account executive to SDR ratios, sales cycle lengths, conversion rates, customer acquisition costs, customer lifetime values, net dollar retention. The new software GTM playbook has yet to be written. Figuring out how to consistently produce wow moments with non-deterministic software is essential.
months is reshaping how software gets built TL;DR: The New Dev Platform Reality In June 2025, Replit CEO Amjad Masad dropped a bombshell on X: his company had crossed $100M ARR, up from just $10M at the end of 2024. This isn’t just another software success story. But that's not enough to create software.
The fastest growing software category in the public markets is security. These two software categories lead buyers’ priorities & are expected to grow at twice the pace of the overall software market. For now, software buyers view security & data products as highest priority. Data follows.
The “Customer Acquisition Cost” Inversion: When Distribution Partners Do Your CAC Circle essentially has a negative CAC model – they don’t acquire customers directly. This is customer acquisition in reverse: instead of spending to acquire customers, they pay to access someone else’s customer base.
Billion PostgreSQL Battle for AI Agent Supremacy Brief Overview : Two data giants are making strategic moves to dominate the AI agent infrastructure market through major PostgreSQL acquisitions. This acquisition builds on previous AI investments, including the 2023 purchase of Neeva, a generative AI search startup. Databricks: The $1.25
It’s tough to spend even $1m a year effectively on most digital spend for most categories of B2B software: Putting aside Unicorns and folks that have raised monster rounds, in my experience, most enterprise SaaS companies struggle to deploy more than $40k-$50k a month on Adwords effectively.
Constellation Software is a $30b+ publicly-traded software holding company employing more than 25,000. A former venture capitalist, Mark Leonard started Constellation in 1995 with $15m of outside investment & a goal of buying vertical software companies with a moat & good unit economics. Acquisition. New Bookings.
With almost two decades of broad technology experience, he has anchored GTM teams in SaaS & Service industries including consulting, network & communications, software, e-commerce, and supply chain. Discussed in this Episode: The power of community-led growth in driving customer acquisition and revenue.
The Evolution of Vertical SaaS The shift from horizontal to vertical SaaS solutions represents a fundamental change in how enterprises buy and implement software. They don’t just build software they become construction industry experts. Efficient Growth : Word-of-mouth in tight-knit industries reduces customer acquisition costs.
Recently, I was on the HR Heretics podcast and we talked about the increasing efficiency of software companies (in addition to other topics including the implications of AI for executives, how to diligence a candidate, & what board members expect of their people leaders). RPE for the top 3 grew at 13-16%.
First IPO in 1999 First acquisition for $5.3 IPO private IPO acquisition is becoming a common path. Every enterprise software category is being re-evaluated through an AI lens. Informatica acquired for $8 Billion! But founded … in 1993! The picks and shovels often outlast the gold rush. Focus on AI-readiness.
In 2021 the total number of US software & AI seeds jumped from 2900 to 4300 - a 49% jump. Acquihires, acquisitions typically under $20m for talent, may become de rigeur as incumbents seek to bolster their teams with AI talent & update existing products with new capabilities. Seeds fell to about 3000 creating a seed tabletop.
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].
The company is successfully evolving from its SMB roots into a serious enterprise software contender. This architecture gives customers flexibility to adapt the software to their needs without dependency on tech teams, while still offering enterprise-grade capabilities. And a Few More Interesting Learnings: 6.
Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale. There are exceptions: Oracle’s database, Tanium’s security product, Workday’s human capital management software. Application software companies typically sell seats.
The metrics are very strong: $2B ARR (run rate — but not really software revenue) Generated from $121B in transactions on platform Growing 23% $251 ARPU 88% Gross Margins Average customer uses 3.3 Customer Acquisition Payback Under 12 Months Chime reaches break even on a typical customer in under a year. million in Q1 2025.
Strategic Moves: Web Expansion: Launched RevenueCat Billing to handle web payments (perfect timing with Apple’s App Store policy changes) Vertical Integration: Acquired Dipsea (a subscription audiobook app) to run real-world experiments on monetization strategies AI-First: 20% of RevenueCat’s top 20 apps are AI-based, as these apps can (..)
The Wiz acquisition and the overall growth rates of security companies as a durable budget within software spending has propelled security more broadly. Cybersecurity and industrial/manufacturing are the two fastest growing categories. Education & life sciences are right behind.
In this episode of PayFAQ: The Embedded Payments Podcast, host Ian Hillis welcomes Matt Downs, President of Worldpay for Platforms, to discuss software-led payments predictions for 2025 and beyond. remains the largest interchange and software market, Matt predicts a loosening of regulatory constraints.
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. It’s the fastest-growing software business of all time.
It is amount of time a customer repays the cost of customer acquisition with gross profit dollars. More importantly, it requires the company establish an efficient go-to-market from the outset; a discipline that benefits the business throughout its life. [1] 1] Just how do we define payback period?
” One strategy is to acquire : the rationale Salesforce gives for the Informatica acquisition. Unlike the previous software era where SORs built platforms on top of themselves to develop broader ecosystems (in Salesforce’s case Veeva & Vlocity ), the AI shift does seem to be more defensive.
Billion acquisition of HashiCorp. About Dave McJannet: Dave McJannet is the CEO of HashiCorp, and led the company from early-stage to its successful IPO and $6B+ acquisition yb IBM. With over 20 years in the infrastructure software space, Dave previously held executive roles at Microsoft, VMware, and GitHub.
And while the workflow of creating software and other digital products and experiences can take many paths and forms, the process has traditionally involved the following key phases: Ideate and Align. After the Adobe acquisition fell apart, the company did a large tender (that triggered quite a large one-time SBC expense).
The state of software buying has changed. During SaaStr Annual 2021, Amanda Malko, CMO at G2, shared a fascinating look at the data that reveals shifting patterns in the way consumers purchase software. . Furthermore, 55% of companies plan to increase software spending in 2022.
“The Last Generation of Human-Only CEOs: Marc Benioff’s Bold Vision for the AI-Augmented Enterprise” Marc Benioff was kind enough to join SaaStr for the first time to do a truly deep dive on what AI means in business software today. It’s a good one. Top 5 Unexpected Learnings: 1. .” Top 4 Mistakes Marc Made 1.
Q1 was a very weak quarter of software earnings. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. Some software companies also have seasonality in the “payback.” net retention and CAC payback). Subscribe now What Happened in Q1?
The term SaaS platform gets tossed around a lotbut what does it actually mean, and why does it matter for today’s software companies? In this article, we’ll break down what a SaaS platform is, highlight real-world examples, and explore key strategies to succeed in the fast-moving software-as-a-service industry.
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