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How Quickly Does Headcount Scale in the Fastest Growing Software Businesses?

Tom Tunguz

Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. I’ve normalized the years for when all the businesses were roughly at the same headcount - fewer than 50 people. The fastest grower scales to more than 600 people in 30 months.

Headcount 178
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. Many investors laugh (and some rightly so) at the fact that software companies’ valuations are often described as a multiple of revenue.

AI 183
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5 Interesting Learnings from Snowflake at $2.4 Billion in ARR

SaaStr

It’s one of the few still commanding a premium multiple in today’s world, and still growing at tremendous rates: Snowflake is also a barometer of everything in SaaS and Cloud, because a significant amount of its revenue is consumption-based, at least in part. AWS is seeing this, and so is Snowflake. Not none, just less.

Headcount 191
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The Hardest Part About SaaS Companies, At Each Stage

SaaStr

But a few thoughts on “the hardest part” for the first few stages: From $1-$100k in ARR, the hardest part is often how little revenue you get from each customer. So much work, so little revenue. Enough to pay some salaries and AWS bills, but it’s not that much. You start making up for it in volume — with headcount.

SaaS 348
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Tabular: Turning Your Data Swamp into a Data Lakehouse with Apache Iceberg

Clouded Judgement

If you don’t want to manage all of the infrastructure around Iceberg (plus allocating headcount to do this!) One key component of a modern cloud-native data architecture is the data lake - which allows for cost-efficient storage of large amounts of data used for analytics and ML at scale.

Data 130
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Altitude 2019 Recap: SaaSOps Is a Thing

BetterCloud

Much to our attendees’ delight, he also unveiled a whopping 32 new integrations to support SaaS apps like Zoom, Atlassian, DocuSign, GitHub, OneLogin, PagerDuty, AWS, Tableau, Duo, Splunk, Datadog, and more. Use that time to add value to your org and get closer to revenue. IT has a problem of scale. How can you unstitch them?

Scale 45
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Altitude 2019 Recap: SaaSOps Is a Thing

BetterCloud

Much to our attendees’ delight, he also unveiled a whopping 32 new integrations to support SaaS apps like Zoom, Atlassian, DocuSign, GitHub, OneLogin, PagerDuty, AWS, Tableau, Duo, Splunk, Datadog, and more. Use that time to add value to your org and get closer to revenue. IT has a problem of scale. How can you unstitch them?

Scale 40