Tom Tunguz

AUGUST 3, 2014

The chart above shows the relationship between beating earnings and Enterprise Value to Trailing-Twelve Month Revenue Multiple (EV/TTM Rev). After the correction of about 40% enterprise companies and of 25% in consumer names , the median enterprise revenue multiple has popped back up 7.4x and consumer has increased similarly to 7.0x.

Startup 100

Startup Trends AWS Marketing 100

Frontegg

MAY 27, 2021

Product-Led Growth (PLG) is a consumer-centric scaling, conversion, and retention philosophy that uses the product itself as the primary growth driver. Besides it’s proven business results, this strategy helps empower end-users to get the best possible product for their needs. This metric is a strong future revenue indicator.

Payment Solutions 98

Payment Solutions SaaS Payments Payments Scale 98

Blulogix

NOVEMBER 8, 2023

Here are the key benefits that have accelerated its adoption: Cost Efficiency Usage-based pricing eliminates the need for businesses to overpay for underutilized services. With this model, customers pay only for what they use, optimizing cost efficiency. This flexibility enables businesses to respond to market demands efficiently.

Technology 52

Technology Pricing Payment Features Subscription 52

SaaStr

OCTOBER 31, 2019

It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”

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SaaStr

AUGUST 10, 2023

Whether you’re going from nothing to something or already scaling and thriving beyond $10-100M, healthy, sustainable growth in SaaS is on every founder’s mind. Cockroach Labs’ CEO Spencer Kimball shares hard-won lessons from scaling from $0 to $5B and his time as an angel investor for more than 80 different startups. Ideas Are Cheap.

Scale 174

Scale Scaling Sales Hiring Cloud 174

OpenView Labs

FEBRUARY 11, 2021

Now, for each segment, isolate its revenue and COGS. If revenue hides all sins, gross margin reveals them via segmentation. “If revenue hides all sins, gross margin reveals them via segmentation. While inevitable and with multivariate causality, it speaks to the product’s maturity and business model.

Scale 52

Scale Payment Methods Payment Services Systems Review 52

ProfitWell

MAY 12, 2020

SaaS ensures that consumers are always up to date with the latest version, while also ensuring that developers have a continuing source of revenue with which to maintain their product. AWS — Amazon Web Services is perhaps the most used of the cloud infrastructure options. What is PaaS?

Cloud 59

Cloud Azure SaaS Underperforming Technical Team 59

Intercom, Inc.

DECEMBER 13, 2018

As Workplace’s global head, Julien Codorniou has been spending the past few years exploring how to make his department align with Facebook’s mission while executing an entirely different business model that relies on companies promoting community within their workforce. I highly recommend Predictable Revenue from Aaron Ross.

Scale 151

Scale Marketplace as a Service Mobile Sales Hiring 151

Chargify

AUGUST 17, 2020

However, with the introduction of Events-Based Billing by Chargify, this event-based billing model is now available to small and medium-sized businesses, giving them the ability to offer the same pricing models and bill customers just as precisely as Amazon Web Services (AWS) or the popular voice and messaging platform Twilio.

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AWS Payment Services SaaS Payments Payments 98

SaaStr

APRIL 30, 2022

Or maybe ARR, depending on your model. Average Revenue per Customer. It wasn’t the case 20 or even 10 years ago, where the business models of the internet were more focused on eCommerce, marketplaces, or even advertising. The last kind of constituent here is investors and business owners. MRR, obviously.

SaaS Payments 227

SaaS Payments Metrics Payment Methods Scale 227

SaaStr

DECEMBER 13, 2021

We weren’t focused on revenue, we were focused on winning developers one-by-one, and that was the key to success for us. The developers you engage with often become your first adopters, who then become product evangelists—and they’ll help you scale and solidify trust within enterprises, too.

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SaaStr

JULY 20, 2021

It’s probably that you’re small, you have very little revenue, you have a couple of employees maybe, you’re probably struggling, maybe your bank accounts are stretched, you’re probably incredibly stressed. It’s a brutal, awful slog in the start. That’s actually not their business model at all.

Underperforming Technical Team 238

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ProfitWell

SEPTEMBER 25, 2019

One of the most famous lines from Citizen Kane is, “It's no trick to make an awful lot of money, if that's all you want is to do is make a lot of money.” That’s never been truer for software businesses in particular than in the past 10-15 years, with the internet stimulating an explosion in the number of viable revenue models.

Payments 40

Payments Revenue Payment Methods SaaS Payments 40

Intercom, Inc.

JANUARY 24, 2019

We’re helping startups and scale-ups that are strategically aligned with Salesforce, which is actually very important in terms of actually delivering solutions. Scaling support for early-stage startups. Revenue has only garnered after that fact. There are plenty of companies that actually have that initial success.

Scale 151

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SaaStr

APRIL 24, 2020

327: John Mellor is Chief Strategy Officer @ Domo, the company that allows you to leverage BI at scale to empower your team with data. As for John, prior to Domo he served as vice president for strategy and business operations for Adobe’s Digital Experience business, driving more than $3 billion in annual revenue.

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Scale Leadership Strategy Technology 214

Chargify

FEBRUARY 1, 2018

Over the last decade, recurring revenue has emerged as the preferred model for businesses moving beyond transactional commerce. While the first generation of recurring revenue was defined by simple subscriptions—think Netflix’s original “one-size-fits-all” $7.99 Change Is Inevitable.

Subscription 75

Subscription Payment Features AWS Scale 75

OpenView Labs

DECEMBER 15, 2020

Cloud marketplaces like AWS Marketplace, Azure Marketplace and Google Cloud Platform Marketplace are digital storefronts where companies can list their offerings for software buyers to find, purchase and provision software. . And there are some pretty amazing opportunities for doing business this way.

Marketplace as a Service 52

Marketplace as a Service Cloud Scale B2B 52

Outseta

JANUARY 20, 2020

In this post I’m going to share the most important lessons about growing a SaaS business that I learned at Buildium—collectively, these things had an awful lot to do with the company being valued so highly. More than anything, I’d fallen in love with the challenge of building a business and helping it grow into its potential.

SaaS Payments 145

SaaS Payments Sales Hiring Payment Methods Payment Services 145

Mucker Capital

APRIL 6, 2023

Are there types of companies, market segments, industries, or business models where PLG does not make sense? If you have a very complicated product–for example you sell AWS or you sell Snowflake–those are infrastructure products. Then, any marketing budget or any acquisition effort you do at large scale is not wasted.

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Startup Scale CTO Hire Outsourced Development 52

ProfitWell

NOVEMBER 5, 2019

Yes, they might kick the can down the road a little longer, but they only delay the inevitable while giving customers an awful experience in the meantime. The key feature separating subscription businesses from their more standard counterparts is the recurring nature of payments. Of course, you know better. The problem?

Payment Features 49

Payment Features Subscription Payment Methods Merchant Services 49

Chart Mogul

OCTOBER 18, 2019

This is already at play — services like AWS, Stripe, and others have brought down the cost of starting and running a business to a fraction of what they used to be just a decade ago. Consumerizing even more parts of the activities of a typical business (logistics-as-a-service, etc.) doubling the number of leads).

Scale 71

Scale SaaS Automotive AWS 71

Chart Mogul

OCTOBER 18, 2019

This is already at play — services like AWS, Stripe, and others have brought down the cost of starting and running a business to a fraction of what they used to be just a decade ago. Consumerizing even more parts of the activities of a typical business (logistics-as-a-service, etc.) doubling the number of leads).

Scale 52

Scale SaaS Automotive AWS 52

OpenView Labs

MAY 5, 2021

Other businesses, like LinkedIn and Netflix, have strong histories of being producers of open-source projects, which provides a strategic recruitment and retention tool for top-tier engineering talent. Related podcast episode: How MongoDB Scaled Their Open-Source Product with a Bottom-Up and Top-Down Sales Motion.

Business 52

Business SMB Scale DevOps as a Service 52

Hacking Revenue

FEBRUARY 26, 2016

While these services significantly lowered the costs of starting a new business, I believe that the people who said that sentence were missing the point of starting a business – to build an always growing, sustainable brand. It is also what sets you up for long term business model and success. Measure Everything.

Outsourcing Services 53

Outsourcing Services Branding Outsourced Development Scale 53

OpenView Labs

JUNE 25, 2019

Numbers will be skewed in the early days because you won’t yet be operating at scale, but even at a small scale you will benefit from keeping your target CAC payback in sight and contemplating how you’re going to hit the goal. We recommend that you start tracking CAC payback as early in the game as you can. Optimize Conversion Rates.

Scale 40

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SaaStr

AUGUST 22, 2020

Justin Bedecarre: And then another client of ours is an international company that has decided that they truly want to scale up in San Francisco. We don’t know when we’re going to be able to get safely back at scale. Is AWS in the lead? And they’re going to reduce their commute by 45 minutes.

Sales Recruiting 145

Sales Recruiting Cloud CTO Hire Scale 145

SaaStr

AUGUST 20, 2019

Since Sameer joined SendGrid at CEO in 2014, the company has quadrupled its revenue, more than doubled its employees, experienced a successful initial public offering and was recently acquired by Twilio in a transaction valued at approximately $2 billion. We should talk about that more and then we can scale that more?

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SaaStr

MARCH 1, 2024

New Startups: Infrastructure Layer The infrastructure layer is exciting and is tooling that enables you to tweak different models, integrate them, and scale them in cost-effective ways. Businesses are changing the way you create music, recreating how films are made or dubbed, and disrupting the way programmers code.

Generative AI 230

Generative AI Outsourcing Services AI Software Review 230

Andreessen Horowitz

MARCH 5, 2024

Where we say, there’s also something called scale capture. There’s a biosimilar for Humira, which is the highest revenue-generating drug called Yusimry that we sell. But they won’t add Yusimry to their formularies because they don’t want to use the revenue in the margin. How did we get there?

Healthcare 102

Healthcare Government Entrepreneurship Pricing 102

SaaStr

JULY 10, 2020

Get back into experimentation mode with our business model, with our pricing, to really think about not just how we can shrink costs, but inflect growth on the top line so we could ultimately control our own destiny, which is in fact what we did. So we spent a lot of time there. The second is what I call establishing ground truth.

Scale 181

Scale Sales Hiring Pricing Sales Recruiting 181

SaaStr

MAY 21, 2019

78 times in the AWS … ADABAS was referenced in the Amazon press release and earnings announcement. And you get folks like Tobi at Shopify and also this room, I’d like to think, are now part of this club that’s driving tech innovation and tech value creation and job creation on a massive massive scale.

Cloud 166

Cloud Scale Finance Retention 166