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TL;DR: While most public SaaS companies are growing at 8-10%, the companies crushing it are those selling outside the tech bubble – restaurants, construction, logistics, and e-commerce. They’re growing 2-3x faster than traditional horizontal SaaS. A plumbing company isn’t hiring a Chief AI Officer.
If you’re building an AI-powered SaaS product, your focus is likely on creating amazing AI features — whether that’s smart automation, AI co-pilots, or data-driven insights. More than that, how you can embed payments seamlessly inside your app to deliver a smooth user experience and open new revenue streams.
We’re living through the biggest transformation in B2B sales since the birth of SaaS itself. The latest from 2025 survey data by ICONIQ from 205 GTM executives across leading B2B SaaS companies The data tells a stark story. The message is clear: The Age of AI isn’t coming—it’s here.
Activant Capital brought together at SaaStr Annua l a group of break-out next-generation AI enhanced vertical software leaders: the CEOs from Owner.com, Alloy Automation, and DoNotPay. At SaaStr Annual they shared their experiences and insights on implementing AI in vertical software companies. Sales up 22%! Join a rocketship.
New spending data from Ramp reveals a possible trend: end user AI adoption may be hitting its first growth slow down. The AI adoption party might be slowing down—at least temporarily. While overall AI penetration among U.S. CFOs who initially approved AI experiments are now demanding concrete business outcomes.
@Replit ’s ARR since founding The space is … beyond on fire No one is going to code without AI again pic.twitter.com/o9RYaYMBxq — Jason ✨👾SaaStr.Ai✨ In the AI coding space, we’re seeing growth rates that would make even the most aggressive VCs blush: Cursor (Anysphere) : $500M ARR at $9.9B AI is incredible at writing code.
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.
When Anthropic hit a reported $4 billion in annual revenue at the end of 1H’25, it marked more than just another AI milestone. To put this in perspective, it took Snowflake—one of the fastest SaaS companies in history—six quarters to go from $1B to $2B ARR. What Traditional B2B and SaaS Can Learn 1.
Data from Stripe (below) shows the speed at which AI native companies are growing compared to SaaS companies. The bar to hitting escape velocity went up (in SaaS companies vs their on prem counterparts). Now let’s talk about the AI wave. The explosion of AI GTM solutions is dizzying. What does this mean?
Today’s subscription businesses demand more than one-size-fits-all workflows. Software companies, SaaS platforms, mobile apps businesses, and AI solutions need flexible tools that adapt to their business.
Revenue growth is up 21% overall, and subscription growth is up 33% — at almost $5 Billion in ARR. It’s driven Atlassian stock up +28% after the results: Is SaaS back? A Big AI Push, But Being Very Conservative on Consumption Pricing For now, Atlassian is sticking mainly to per-seat pricing. Wall Street is happy.
Don’t look now but guess who’s crushing it in the frenetic age of AI? And AI is the accelerant. Even for some of the established leaders in SaaS and enterprise software. You CAN Maintain 20%+ Growth at Massive Scale ServiceNow hit $3.113B in quarterly subscription revenue growing 22.5% Crushing it.
Subscribe now The Year of “Enterprise AI” One of the biggest challenges facing AI systems in enterprises today is the “last mile” problem: how do you make AI both reliable and accurate for specific enterprise use cases? This is what I’m calling “Enterprise AI.”
Replit : After languishing at sub-$10M ARR for 8 years, suddenly 10x’d to $100M ARR in the exact same 8-month window following their AI Agent launch in September 2024. ” The AI handles architecture, data modeling, user experience, and deployment. This isn’t coincidence. With a bit of a cowboy mentality for now.
We’re now seeing the exact same dynamic play out in AI. Take AI code editors like Cursor or Claude Code. AI tools like these aren’t just “IDEs with autocomplete.” If the average developer costs $150K/year, and an AI assistant makes them 20% more productive, that’s $30K in value per seat.
SaaStr Annual has always been the go-to event for SaaS founders, executives, and investors, but 2025 is shaping up to be the best one yet. It’s 50% about the intersection of AI + B2B, 50% about GTM in 2025+, and … 50% about helping you meet the best of the best! With a New, AI Demo Stage from 100+ Top AI Start-Ups!
June 30, 2025: The date where if your team hasn’t rolled out a truly great AI into production yet … and seen a boost from it … It’s time to reboot the team. June 30, 2025 marks the time we need to wrap up the era of stalling, of waiting to see in AI. — Jason ✨👾SaaStr.Ai✨ ✨ Lemkin (@jasonlk) June 21, 2025 It’s time.
It’s the vertical SaaS rocketship: $840m ARR Still growing a stunning 29% (!) Theyve built a true operating system for the tradeshandling everything from CRM to payments to field service management. Lesson for SaaS Founders : If youre in vertical SaaS, aim to be the OS for your niche. 5 Interesting Learnings: 1.
Space tech firm Voyager Technologies and adtech platform MNTN also posted strong debuts, AI infrastructure provider CoreWeave has emerged as 2025’s standout performer, surging over 287% from its $40 IPO price. valuation, paused roadshow but still targeting 2025) Potential Candidates: Stripe (payments processing, $91.5B
ARR (annual recurring revenue) is a hallmark SaaS metric rooted in predictability. That predictability underpins why investors find “comfort” in SaaS models. However, many companies misuse ARR and count forms of non-recurring revenue as ARR, confusing the metric. Here’s a quick summary of that post.
1 Together, these teams share and explore ideas, align on a vision, visualize concepts, and translate them into coded products — all on a single, connected, AI-powered platform that collaborators around the world can access with a URL.” Access to Figma is sold as an annual or monthly subscription, per seat.
In an era when executives are bombarded with tech buzzwords, it’s vital to focus on real-world AI uses that deliver business impact. This vivid idea captures AIs potential to act as assistants and insights machines, boosting efficiency and innovation. Executives also leverage generative AI for idea generation and reporting.
Subscribe now Random Market Musings The last few posts have been more focused on AI developments, so I wanted to take some time this week to give a broader macro update. Even the nerd fight over AI scaling has calmed down for the moment. AI powered margin improvement stories are also everywhere. AI is a structural tailwind.
How do leading SaaS companies define ARR? Especially as AI and usage-based pricing models reshape recurring revenue in SaaS? I did […] The post AI ARR vs. I did […] The post AI ARR vs. SaaS ARR: How to Define and Calculate appeared first on The SaaS CFO.
Something I’ve written a fair bit about, and something I deeply believe, is this: you don’t have an AI strategy without a data strategy. Or to authorize an AI tool to sit on top of your Slack data and make it searchable or useful. If you want access to it for AI workflows, you better use their agent.
Airtable Assistant announcement email Airtable Assistant is an AI-powered native copilot to help you turn your data into insights, automations, and agents that work for you. Wunderkind’s new feature announcement email Wunderkind AI identifies your anonymous visitors and automatically sends them personalized messages across all channels.
There’s currently a lot of jawboning on what will happen to jobs in the age of AI. There are many CEOs, some of very large public companies, who have commented on what AI means for their headcount plans. The pessimistic view is that the job displacement from AI will be massive, leading to a contracting economy.
Subscribe now New Rules For a New Game One of the biggest shifts happening in startups right now is that the old rule of thumbs for how you build a successful software startup just don’t hold in the age of AI. If you’re building a steady, profitable SaaS business, none of this may apply. And they’re HUGE.
By embedding payment capabilities directly into existing business systems, companies can eliminate redundancies, improve cash flow, and create a smoother experience for customers and partners alike. Manual invoicing, reconciliation, and transaction approvals require time and personnel, leading to higher operational costs.
SaaS pricing isn’t static – it’s a living strategy that grows with your company. From your first paying customers to enterprise domination, here’s how successful SaaS companies level up their pricing game to maximize growth and profitability at every turn.
Software as a service (SaaS) organizations have always been at the forefront of innovation. But Artificial Intelligence (AI) has been the catalyst for enormous change. Together, AI and SaaS are reshaping business operations, redefining customer experiences, and driving innovation across industries. What is AISaaS?
The best part is that Jade has designed her entire course to include a community and run on a subscription model. 6: Content marketing blueprint Best course for SaaS businesses looking for social media marketing inspiration Price : Free version available. There’s a whole mobile app dedicated to this community.
Artificial intelligence is everywhere from smart content generators to coding assistants and its changing how SaaS products are built and marketed. Terms like Large Language Model (LLM) and AI tool often get tossed around interchangeably, but they arent the same thing. Suddenly, every SaaS platform wanted to add GPT-powered features.
At SubscriptionFlow, we take care of all your billing scenarios, with AI-driven mechanisms. How is Revenue Growth Management Relevant to SaaS? Our discussion of the RGM model above is highly relevant to the SaaS industry as well. Subscriptions are a great way for businesses to generate stable revenue streams.
Personalize surveys by setting conditions based on user behaviors , translating and localizing your NPS surveys using AI, and customizing the appearance of your surveys to match your app’s design. Leverage AI-driven sentiment analysis to analyze and categorize open-ended responses quickly.
After years of accelerated SaaS adoption, organizations have fallen victim to SaaS sprawl. Even with the average applications declining, SaaS sprawl still remains a concern. While SaaS sprawl isn’t new for IT teams, the landscape has dramatically shifted, particularly with the explosive emergence of AI.
If youre like most organizations today, your employees use a mysterious number of SaaS apps. As something all IT organizations grapple with, here we discuss some of the hidden risks of shadow IT in the SaaS stack , why IT shouldnt dismiss them, and how to mitigate them. Sometimes an app is approved by IT. And other times, its not.
Subscribe now “Grouping + AI” for Triage One area I’m quite excited to see AI revolutionize is “grouping + triage” workflows. Many of them AI based. The promise of SaaS is that growth in the early years leads to profits in the mature years. Follow along to stay up to date! Perfect for a LLM!
You realize you need a new tool to solve a problem so you quickly sign up for the leading, most relevant SaaS app. Rinse and repeat a few dozen times and suddenly youre drowning in a sea of subscriptions. Youre not sure what youre paying for , which apps are even being used, and whether your data is secure.
AI is quickly becoming the new interface of the internet, not just for finding information, but for getting things done. So what if you could also chat with your SaaS metrics? So what if you could also chat with your SaaS metrics? Try it out with your favorite AI tools. We’re excited to see what you do with it.
By BluLogix Team The Real Reason SaaS Companies Struggle with Usage-Based Billing—And What the MGI Report Says to Do About It For years, SaaS companies have embraced subscription billing for its simplicity and predictability. For SaaS companies, this is particularly relevant. The problem?
When it comes to your SaaS tech stack, there’s a lot to keep track of. From keeping all of your contracts organized to ensuring all of your data is secure, it’s nearly impossible to do it all in a spreadsheet. If you’ve found your company experiencing the same SaaS spend challenges regularly, let BetterCloud solve them for you.
By BluLogix Team How AI is Transforming Billing Billing has long been a complex and manual process, prone to errors, inefficiencies, and revenue leakage. With businesses adopting diverse pricing modelsranging from subscriptions to usage-based billinglegacy systems often struggle to keep up.
That said, industry experts agree that your SaaS companys goal churn should be below 2%. As a SaaS business leader, reducing software user churn is an important part of maintaining your customer base and increasing revenue. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%.
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