This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
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.
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. Anthropic’s “customers” can go from $0 to $100K+ monthly usage without ever talking to a salesperson.
In the latest billion+ acquisition, Xero just acquired Israeli-founded, NYC-based Melio for $2.5B The deal shows acquirers are hungry for revenue acceleration—Xero expects to more than double group revenue by 2028 with this acquisition. This B2B2B model generated 35% of revenue while dramatically reducing customer acquisition costs.
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
Their ongoing revenue can “fund” new logo acquisition and allow the business to operate profitably at paybacks much larger than what private companies (with smaller ARR bases) can afford. To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.
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.
TL;DR: More mobile apps are monetizing by selling subscriptions on their websites to drive user acquisition, keep more revenue, and own their user relationship, especially now that steering iOS users to your site is allowed in the US. What are Web Subscriptions? Why Should Mobile App Companies Offer Web Subscriptions?
Justin Sacks (02:08) Taking me back, I think I got a summer job in high school so that I could pay for my own WoW subscription. Back in the day, games, well, at least large online multiplayer games, required a subscription rather than just a one-time fee. How many years you recall did you pay for the subscription?
How Figma Makes Money From the S-1: “Our subscription model is designed to meet the diverse and evolving needs of our growing community and customer base. Access to Figma is sold as an annual or monthly subscription, per seat. LTM GAAP Operating Margin Figma’s as-reported LTM operating margin was (94%).
You might be surprised to know that SaaS companies can learn a lot from their consumer subscription counterparts. 4: High-end sales teams Increasingly, SaaS organizations leverage inside sales teams, since selling subscriptions is easier and less of a commitment than selling enterprise software. 3: Make onboarding seamless.
Adding complementary products or services can double your revenue potential without requiring new customer acquisition And a few more interesting learnings: 6. Subscription revenue has accelerated to 31%. Accelerating at Scale. This is So Impressive. This is rare approaching $1B in total ARR: 7.
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. Prioritize Integration: Ensure your billing systems are seamlessly connected to your CRM, ERP, and subscription management tools.
Unlike traditional businesses, most SaaS businesses operate the subscription pricing model. For instance, satisfied customers are more likely to renew their subscriptions month after month with a subscription-based streaming service. What does customer satisfaction look like for SaaS businesses?
By Inga Broerman The 2025 Blueprint for Scalable Growth in the Subscription Economy The subscription economy is entering a pivotal year. To succeed, subscription-based organizations must embrace smarter, more integrated approaches to billing, management, and strategy.
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.
Setting quotas too high can lead to a flurry of new customers who arent well-qualified, driving up acquisition costs without much payoff in terms of long-term retention. Your sales targets should factor in both acquisition and retention. ChartMogul combines lead, trial, opportunity, and subscription data together in a single system.
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. For smaller players, the stakes are high.
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.
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.
Scaling Operations: As the customer base grows, the company refines its pricing strategy to optimize customer acquisition costs and lifetime value. The introduction of Zoom One drove a 27% year-over-year increase in enterprise customers, reinforcing the value of simplifying pricing for customer acquisition and retention.
But in a subscription economy, the reality is that its far more than that. Poor GRR increases customer acquisition cost (CAC) because it forces you to constantly replace lost revenue. A poor ratio limits your ability to invest – not just in new customer acquisition, but in areas like product and company-wide hiring.
Recognize churn at the end of the paid subscription period. Recognize churn when the subscription ends in your billing system. Recognizing this churn as soon as the customer cancels lets you immediately realize the loss in your SaaS metrics, even if you’re still providing the service until the subscription ends/expires.
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. Managing the cash flow becomes a crucial aspect for SaaS businesses with a subscription payment model.
But just becausae your installed base isn’t leaving, doesn’t mean you new customer acquisition hasn’t already materially slowed due to AI competitors. ElevenLabs rocketing to $100m+ ARR powering voice for AI leaders. Big Companies Don’t Really Have More Time Yes, bigger companies have a bigger base to protect, and move more slowly in general.
For MSPs and SaaS companies, offering discounts on recurring subscriptions can have a long-term impact on profitability. Here’s how margin analysis helps: Assessing Long-Term Profitability : For subscription-based models, the impact of discounts and free trials can extend well beyond the initial sale.
Acquiring new customers is significantly more expensive than retaining existing ones, with studies showing that customer acquisition costs (CAC) can be five to 25 times higher than the cost of keeping a current customer. To illustrate the impact, consider a SaaS company with a monthly churn rate of 5%.
Through numerous acquisitions (ExactTarget, Tableau, Slack, and more), Salesforce built an expansive ecosystem of cloud services. The pricing is generally transparent and predictable you know the flat subscription cost for your tier, though adding more marketing contacts or additional users in some Hubs can increase the price.
price uplifts at renewal with no changes to subscriptions. HubSpot : Industry observers expect continued incremental price increases throughout 2025, particularly as HubSpot integrates recent acquisitions like Clearbit (now Breeze Intelligence) and Cacheflow into their platform. per user (6.7%
Its subscription-based model ensures flexibility and scalability, allowing organizations to easily adapt to evolving demands and access cutting-edge AI capabilities. Workday applies AI to human resources and financial management, utilizing predictive analytics for talent acquisition, workforce planning, and financial forecasting.
Many product teams focus on new customer acquisition but ignore the cost of losing customers they’ve already paid to acquire. With customer acquisition costs rising and retention driving most of your customer lifetime value, ignoring churn is a fast track to stalled growth. What is customer churn? It sounds simple, and it is.
This model offers easy accessibility (anywhere, anytime), automatic updates, and lower upfront costs (subscription-based pricing). Paid plans include Startup (around $189/month), Growth ($329/month), and Business ($529/month) annual subscriptions come at a ~17% discount. A 14-day free trial is available for premium features.
Instead of prioritizing new business acquisition, CLG turns existing customers into a primary source of revenue. Product-led growth (PLG) is a growth strategy where the product itself is the main driver of customer acquisition, retention, and expansion. Is customer-led growth the new PLG? Yes and no.
The true costs lie beneath the surface, encompassing vast data acquisition, meticulous data cleaning and preparation, massive storage needs, intensive model training, specialized talent acquisition, and ongoing maintenance and updates. Why is this so important? An SMP tracks actual usage patterns, revealing underutilized licenses.
Consistent outreach, targeted messaging, and a clear value proposition will drive customer acquisition and fuel your growth. Subscribers who will stick around, renew their subscriptions, and expand their usage over time are the most valuable customers in SaaS. To grow your subscriber base, you need strong marketing and sales.
The analysis reveals that a particular product has a high customer acquisition cost but contributes significantly to overall revenue. Another example is a SaaS company offering multiple subscription tiers. By analyzing the revenue generated by each tier, the company identifies that one specific tier has low adoption but high churn.
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.
Sara Cowie, Head of Customer Acquisition at Syncano , emphasizes the importance of these features: “Uptime and performance are vital to us. Don’t just focus on the subscription price – factor in any additional fees for advanced features or add-ons. Lastly, take a close look at the overall cost.
Using customer retention cohort analysis, you can track the percentage or number of customers from a specific group who still have active subscriptions over time. Start by setting specific user acquisition targets to hit with your penetration pricing, but don’t stop there.
It has built-in monetization options, including paid subscriptions and an ad network. Frase's monthly subscription option allows me to pay only when I need it, which has saved me over $100 this year compared to annual subscriptions for similar tools. Custom websites host your content, creating a hub for your newsletter.
GTM 117: From 0 to Acquisition in 3.5 The system has the ability to organize personal expenses, properly identifying business-related expenses such as software and subscriptions, meals, travel, and home office costs. Share Tag GTMnow so we can see your takeaways and help amplify them.
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.
Incorporate setup fees, discounts, and any upsell or cross-sell opportunities that dont factor into your subscriptions or recurring revenue. Non-recurring revenue. Dont let one-off payments fall through the cracks. Growth and scalability.
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.
We organize all of the trending information in your field so you don't have to. Join 80,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content