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

Tom Tunguz

How quickly do the fastest growing software companies build their teams? Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history.

Headcount 187
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5 Interesting Learnings from Snowflake at $2.4 Billion in ARR

SaaStr

AWS is seeing this, and so is Snowflake. Everyone is basically doing more with not much more headcount (see next point). #4. Growing Headcount, But Much More Slowly That Revenue. Headcount is up 29% year-over-year, but revenue is up 50%. Not none, just less. Growing remains jaw-dropping at 50% at $2.4

Headcount 246
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Are You Getting More Competitive, Or Less Competitive? Hitting the Plan Might Not Be Enough

SaaStr

All software slowly but surely gets out of date. DigitalOcean is growing more slowly than its mega competitors Azure, AWS, etc. If nothing else, you can pretty reliability track headcount growth on LinkedIn). Your competitors have the same seasons. You can’t blame it on market changes. Again, they play in the same market.

Azure 222
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The 9 best tools for your early-stage startup tech stack

Intercom, Inc.

This is especially important for small teams, where you need to operate at a scale far beyond your headcount (without burning out your team by working around the clock). Using Brex also saves time for your finance team (or, depending on headcount, your finance person ??) AWS – Cloud computing. Apply now.

Scale 164
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range (the aggregate change in expansion - contraction - churned revenue).

AI 190
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Why Self-Service and Product-Led Growth Won’t Replace Sales [Opinion]

Sales Hacker

Many of today’s fastest-growing software companies have something in common — their products can sell themselves. According to OpenView — the expansion stage software VC — there are more than 300 mature software companies that have embraced PLG. Sales still makes up 25% of their headcount on average.

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Clouded Judgement 3.31.23

Clouded Judgement

Every week I’ll provide updates on the latest trends in cloud software companies. How Will AI Effect Software Business Models? Like many, I’ve been thinking about how AI and foundation models will effect the world of software. In particular - how AI will effect software business models. Consumption Pricing.

Cloud 130