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This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Before diving into the benchmarks too deeply, I want to explain how different Veeva’s business is than most. MORE
As you may have guessed from Firas’ background, we’re huge fans of OpenView, which recently published the 2019 Expansion SaaS Benchmarks Report and accompanying Expansion SaaS Benchmarks Data Explorer. Companyon’s SaaS Benchmarks Modeling Tool. MORE
There are certainly plenty of surveys and published benchmarks on SaaS metrics that try to provide guidance. Use caution with rules of thumb But you should be careful not to take these SaaS benchmarks as gospel. MORE
Chetan Puttagunta , General Partner @ Benchmark: Why does Chetan believe we have seen a strong decline in the per seat pricing model? Welcome to Episode 211! MORE
In particular, I benchmarked the revenue, growth rates and round size characteristics of these businesses at their Series A. Benchmarking Exceptional Series A SaaS Companies from Tomasz Tunguz. At SaaStr 2016 and SaaS Office Hours in New York , I shared an analysis of the fastest growing SaaS companies over the last 3 years. I’ve embedded the slides here. These are the key bullet points from the deck about exceptional SaaS companies. MORE
PagerDuty was founded in 2009 by 3 former Amazon engineers who were often on-call. To engineers, being on call means carrying a pager to respond to crises when software breaks or services go down. In the 10 years since that day, PagerDuty has built an exceptional business. MORE
Our 2019 Expansion SaaS Benchmarks are live! The post OpenView’s 2019 Expansion SaaS Benchmarks [Podcast] appeared first on OpenView This year we surveyed over 500 companies, ranging from pre-revenue to $150M+ ARR with nearly half of respondents coming from outside the U.S. On this episode, OV’s Kyle Poyar and Sean Fanning along with NetSuite’s Tom Kelly, share the findings and some advice for founders. Follow along here. ?. Prefer to listen on iTunes? Click here. MORE
Numbers provide us a certain certainty. With their precision, they offer a sense of black and white, in or out. But, metrics alone aren’t enough. All the quantitative analysis in the world won’t lead me to the next great idea for startup. Those figures can’t create empathy, develop the right culture, or hire the right people. MORE
Founded in 2008, AppDynamics is a leader in the application performance management space. AppDynamics technology helps engineers determine how software applications behave as users interact with them. Based in San Francisco, AppDynamics employs about 1200 people and has raised approximately $315M to date. The company filed their S-1 recently to take the company public. MORE
Benchmarks are the only check on whether or not a business is generating efficient growth. Benchmarks act as a swim lane for operating a business and allow operators to build a hyper-growth business that provide permission to believe. How Do I Know What My Benchmarks Are? MORE
Recently, we’ve seen a series of product-driven companies building huge customer bases with tremendous account expansion and terrific sales efficiency. DataDog is no exception. DataDog provides a very popular IT monitoring solution that has grown from its founding in 2010 to a huge business. MORE
Benchmarking is a great tool, if you can get access to representative data. Pacific Crest and David Skok have released a fantastic survey benchmarking SaaS metrics for early and growth stage companies. Benchmarking is a great first order evaluation tool. MORE
How do you benchmark a sales organization in a time like this? If you’re interested in how to benchmark your sales team and understand how other sales teams’ performance is evolving, take a look at the Chorus Daily Briefing MORE
Cloudera is the second of the Hadoop players to go public. Last week, the company filed their S-1 and revealed a massive business. Cloudera generated $261M in revenue, counts 500 clients and grows those accounts by 43% annually. 18% of their customers run Cloudera software in the cloud, a surprisingly large number. Hortonworks is Cloudera’s chief competitor. In the following charts, we’ll compare the two businesses. MORE
While we have quite a lot of data from our SaaS portfolio companies and from SaaS startups pitching to us (which I'll be happy to share, in aggregated form, in another post), I thought it would be good to increase our sample size by asking a larger number of SaaS startups to provide us with some key metrics: SaaS metrics benchmarking survey If you're a SaaS startup I'd love you to participate in the survey. benchmarks conversion saas kpis saas metrics MORE
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. The company has grown faster than the median SaaS business in our benchmark data set, recording a 176% CAGR over this three year period compared. MobileIron spent the most of any company in the benchmark set as a percentage of revenue in year 4 at 166% of revenue. MORE
The Value of Benchmarking. By tapping into this horde of data, a skilled SaaS CFO can create comparable company benchmarks to validate their reporting methodology, then use these to drive their annual planning process and evaluate business performance on several levels. In my experience working with enterprise SaaS companies over the past five years, I’ve seen a large variance in benchmarks for gross margin across subscription software businesses. MORE
In the past few years, Zoom has become a verb: the act of video conferencing someone. Eight years ago, Eric Yuan, former VP Engineering at WebEx left to create a business with a better video conferencing product. He and his team authored a new codec, which is far more resilient than others. MORE
As many of you may know, Trish Bertuzzi and the folks over at the Bridge Group publish a lot of great stuff on Inside Sales strategy and operations, including inside sales compensation benchmarks, lead development rep best practices, outbound selling strategies, and on an on. MORE
BONUS: Why are Casey’s benchmarks for consumer transactional businesses lower than others? At the end of 2019, I presented Eventbrite’s product plans to the board for 2020. MORE
Benchmarks are useful Of course, SaaS vendors need to be very careful to share only aggregate data. But with proper protections, they can regularly collect and share helpful benchmark information that allow companies to compare themselves to their peers. MORE
How far along was the typical SaaS Series A in 2018? The median business was at $1.8M in ARR and growing at 250%. The chart below shows a representative sample of SaaS Series As’ ARR and projected ARR growth rate for 2018. MORE
Last week we published the most recent SaaS & Software benchmarks in our platform used by companies in their FP&A analyses for management, boards and investors. In the 2020 Benchmarks, we added a number of new benchmarks around compensation expense, plus, a measure of the SaaS Cash Conversion Rate, popularized by Bessemer. In addition, benchmarks for time to profitability, not just for the best in class, but for the sector as a whole have shortened. MORE
In the past, we have benchmarked the revenue per employee of large publicly traded SaaS companies and determined that the average is about $200k of revenue per person. In the chart above, Business Objects, a business intelligence company, sets the benchmark. But, that analysis examined revenue per employee that only one point in time. As Jesse Hulsing pointed out to me, examining this figure over five years reveals quite a bit about the health of the business. MORE
This week we released our third annual Expansion SaaS Benchmarks report. But benchmarks alone are not enough. We’ve got to make the leap from benchmarks to action. Here’s our advice on how to use the benchmark data to grow even faster in 2020. MORE
Do you know if your product’s Free Trial is hitting industry benchmarks? Conversion Rate Optimization Retention Monetization SaaS Free Trial Benchmarks SaaS Free Trial SaaS Acquisition Customer Engagement Customer Onboarding MORE
The post 110% Net Dollar Retention Is The Benchmark appeared first on OPEXEngine. Blog customer retention customer success customer success rate net dollar retention SaaS Benchmark SaaS Churn SaaS metricOne SaaS metric we monitor closely is net dollar retention. It tells you what percent of revenue from current customers you retained from the prior year, after accounting for upgrades, downgrades, and churn. MORE
Following this week’s post Benchmarking HubSpot’s S-1, Josh and Nikos raised an interesting question on Twitter. What are the right ways to benchmark SaaS companies from their early days through IPO? I have always used years-since-founding as the time axis to compare companies, because if I were a founder, that’s how I might think about benchmarks. Bucketing by ACV for revenue growth won’t shed much more insight into benchmarks than the raw median. MORE
Founded in 2006, Mulesoft is an 850 person company based in San Francisco that builds data integration tools. The company started originally as an open-source product and then focused on its paid offering. Today, the business generates nearly $200 million annually in revenue, and is growing at 70%. The business filed to go public last week , and the documents reveal a very impressive business operating at scale. MORE
For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources. How many of your individual sales reps meet or beat the benchmark? Sales is the Growth Engine. MORE
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Salesforce went public more than 10 years ago. This harbinger of subscription, internet delivered software created one of the most exciting waves in software and the single most valuable SaaS company today, worth $37B as of this writing. MORE
One number investors use to benchmark SaaS startups across sectors and industries is sales efficiency. Below are the sales efficiency benchmarks for the approximately 20 publicly traded SaaS companies calculated on an annual basis by years since founding. MORE
How do you benchmark a sales organization in a time like this? If you’re interested in how to benchmark your sales team and understand how other sales teams’ performance is evolving, take a look at the Chorus Daily Briefing MORE
At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. Benchmarking Best Practices SaaS & Software Best Practices Benchmarking OPEX Benchmarking SaaS benchmarks Sales and Benchmarking MORE
The report uses data from 5m sales and customer calls to benchmark sales team performance. Our portfolio company Chorus.ai released the State of Conversational Intelligence 2020. There’s lots of great data in the report. Some of the data reaffirms rules of thumb. For example, the typical win rate of a sales qualified lead is 19%. Other data points are surprising. For example, the average SDR dials 106 people to schedule one meeting. MORE
Most growth communities, forums, and email lists will inevitably have that thread that goes: “Hey, what are the benchmarks everyone’s seeing for X?” The desire is further fueled by many companies releasing “benchmark reports.” Now, back to benchmarks. MORE
In this new and expanded 2019 benchmark study , we revisit today’s marketing automation platforms and dig deeper into the quality of reporting, nature of the insights, and the impacts these platforms continue to have across the B2B community. MORE
To help out, we crunched the burn rate figures from OpenView’s 2019 Expansion SaaS Benchmarks study. Check out our new Data Explorer feature , which allows you to visualize your company’s peer benchmarks to see how you stack up. The post 2019 Benchmarks: Are You Burning Too Much Cash? MORE
Slack has transformed the way we work. By replacing email with beautiful and simple internal chat, Slack has productized productivity. Founded as a gaming company called Tiny Speck in 2009, the company’s initial product, Glitch, didn’t catch on as expected. MORE
Benchmarks Related Topics 
Practical Advice on SaaS marketing
JULY 1, 2020
Benchmarks are useful Of course, SaaS vendors need to be very careful to share only aggregate data. But with proper protections, they can regularly collect and share helpful benchmark information that allow companies to compare themselves to their peers.
Tom Tunguz
APRIL 28, 2020
How do you benchmark a sales organization in a time like this? If you’re interested in how to benchmark your sales team and understand how other sales teams’ performance is evolving, take a look at the Chorus Daily Briefing
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Tom Tunguz
JANUARY 4, 2019
How far along was the typical SaaS Series A in 2018? The median business was at $1.8M in ARR and growing at 250%. The chart below shows a representative sample of SaaS Series As’ ARR and projected ARR growth rate for 2018.
Tom Tunguz
NOVEMBER 21, 2019
The report uses data from 5m sales and customer calls to benchmark sales team performance. Our portfolio company Chorus.ai released the State of Conversational Intelligence 2020. There’s lots of great data in the report. Some of the data reaffirms rules of thumb. For example, the typical win rate of a sales qualified lead is 19%. Other data points are surprising. For example, the average SDR dials 106 people to schedule one meeting.
Advertiser: ZoomInfo
As buyer expectations continue to heighten, marketing and sales teams are feeling pressured to deliver authentic messaging to buyers at every point of their customer journey. This report aims to highlight the current state of B2B database and contact acquisition strategies, and organizations’ goals to leverage data to fuel their go-to-market strategies in 2020 and beyond.
Tom Tunguz
APRIL 29, 2019
Slack has transformed the way we work. By replacing email with beautiful and simple internal chat, Slack has productized productivity. Founded as a gaming company called Tiny Speck in 2009, the company’s initial product, Glitch, didn’t catch on as expected.
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OPEXEngine
JUNE 4, 2020
Last week we published the most recent SaaS & Software benchmarks in our platform used by companies in their FP&A analyses for management, boards and investors. In the 2020 Benchmarks, we added a number of new benchmarks around compensation expense, plus, a measure of the SaaS Cash Conversion Rate, popularized by Bessemer. In addition, benchmarks for time to profitability, not just for the best in class, but for the sector as a whole have shortened.
Tom Tunguz
AUGUST 26, 2019
Recently, we’ve seen a series of product-driven companies building huge customer bases with tremendous account expansion and terrific sales efficiency. DataDog is no exception. DataDog provides a very popular IT monitoring solution that has grown from its founding in 2010 to a huge business.
Chaotic Flow
NOVEMBER 11, 2014
As many of you may know, Trish Bertuzzi and the folks over at the Bridge Group publish a lot of great stuff on Inside Sales strategy and operations, including inside sales compensation benchmarks, lead development rep best practices, outbound selling strategies, and on an on.
Tom Tunguz
MARCH 18, 2019
PagerDuty was founded in 2009 by 3 former Amazon engineers who were often on-call. To engineers, being on call means carrying a pager to respond to crises when software breaks or services go down. In the 10 years since that day, PagerDuty has built an exceptional business.
OpenView Labs
SEPTEMBER 16, 2019
The post 2019 Expansion SaaS Benchmarks Report appeared first on OpenView
|
Tom Tunguz
APRIL 28, 2020
How do you benchmark a sales organization in a time like this? If you’re interested in how to benchmark your sales team and understand how other sales teams’ performance is evolving, take a look at the Chorus Daily Briefing
The Angel VC
OCTOBER 12, 2014
While we have quite a lot of data from our SaaS portfolio companies and from SaaS startups pitching to us (which I'll be happy to share, in aggregated form, in another post), I thought it would be good to increase our sample size by asking a larger number of SaaS startups to provide us with some key metrics: SaaS metrics benchmarking survey If you're a SaaS startup I'd love you to participate in the survey. benchmarks conversion saas kpis saas metrics
OPEXEngine
DECEMBER 31, 2019
The post 110% Net Dollar Retention Is The Benchmark appeared first on OPEXEngine. Blog customer retention customer success customer success rate net dollar retention SaaS Benchmark SaaS Churn SaaS metricOne SaaS metric we monitor closely is net dollar retention. It tells you what percent of revenue from current customers you retained from the prior year, after accounting for upgrades, downgrades, and churn.
Inturact
NOVEMBER 25, 2019
Do you know if your product’s Free Trial is hitting industry benchmarks? Conversion Rate Optimization Retention Monetization SaaS Free Trial Benchmarks SaaS Free Trial SaaS Acquisition Customer Engagement Customer Onboarding
Casey Accidental
JUNE 9, 2020
BONUS: Why are Casey’s benchmarks for consumer transactional businesses lower than others? At the end of 2019, I presented Eventbrite’s product plans to the board for 2020.
OpenView Labs
OCTOBER 30, 2019
As you may have guessed from Firas’ background, we’re huge fans of OpenView, which recently published the 2019 Expansion SaaS Benchmarks Report and accompanying Expansion SaaS Benchmarks Data Explorer. Companyon’s SaaS Benchmarks Modeling Tool.
OPEXEngine
DECEMBER 17, 2019
The Value of Benchmarking. By tapping into this horde of data, a skilled SaaS CFO can create comparable company benchmarks to validate their reporting methodology, then use these to drive their annual planning process and evaluate business performance on several levels. In my experience working with enterprise SaaS companies over the past five years, I’ve seen a large variance in benchmarks for gross margin across subscription software businesses.
InsightSquared
JULY 1, 2019
In this new and expanded 2019 benchmark study , we revisit today’s marketing automation platforms and dig deeper into the quality of reporting, nature of the insights, and the impacts these platforms continue to have across the B2B community.
Tom Tunguz
OCTOBER 9, 2013
One number investors use to benchmark SaaS startups across sectors and industries is sales efficiency. Below are the sales efficiency benchmarks for the approximately 20 publicly traded SaaS companies calculated on an annual basis by years since founding.
Tom Tunguz
SEPTEMBER 10, 2013
Benchmarking is a great tool, if you can get access to representative data. Pacific Crest and David Skok have released a fantastic survey benchmarking SaaS metrics for early and growth stage companies. Benchmarking is a great first order evaluation tool.
OpenView Labs
SEPTEMBER 18, 2019
Our 2019 Expansion SaaS Benchmarks are live! The post OpenView’s 2019 Expansion SaaS Benchmarks [Podcast] appeared first on OpenView This year we surveyed over 500 companies, ranging from pre-revenue to $150M+ ARR with nearly half of respondents coming from outside the U.S. On this episode, OV’s Kyle Poyar and Sean Fanning along with NetSuite’s Tom Kelly, share the findings and some advice for founders. Follow along here. ?. Prefer to listen on iTunes? Click here.
Tom Tunguz
FEBRUARY 24, 2016
In particular, I benchmarked the revenue, growth rates and round size characteristics of these businesses at their Series A. Benchmarking Exceptional Series A SaaS Companies from Tomasz Tunguz. At SaaStr 2016 and SaaS Office Hours in New York , I shared an analysis of the fastest growing SaaS companies over the last 3 years. I’ve embedded the slides here. These are the key bullet points from the deck about exceptional SaaS companies.
Tom Tunguz
NOVEMBER 20, 2016
Numbers provide us a certain certainty. With their precision, they offer a sense of black and white, in or out. But, metrics alone aren’t enough. All the quantitative analysis in the world won’t lead me to the next great idea for startup. Those figures can’t create empathy, develop the right culture, or hire the right people.
Practical Advice on SaaS marketing
JULY 9, 2016
There are certainly plenty of surveys and published benchmarks on SaaS metrics that try to provide guidance. Use caution with rules of thumb But you should be careful not to take these SaaS benchmarks as gospel.
OpenView Labs
SEPTEMBER 17, 2019
This week we released our third annual Expansion SaaS Benchmarks report. But benchmarks alone are not enough. We’ve got to make the leap from benchmarks to action. Here’s our advice on how to use the benchmark data to grow even faster in 2020.
OpenView Labs
OCTOBER 7, 2019
To help out, we crunched the burn rate figures from OpenView’s 2019 Expansion SaaS Benchmarks study. Check out our new Data Explorer feature , which allows you to visualize your company’s peer benchmarks to see how you stack up. The post 2019 Benchmarks: Are You Burning Too Much Cash?
Brian Balfour
MARCH 21, 2017
Most growth communities, forums, and email lists will inevitably have that thread that goes: “Hey, what are the benchmarks everyone’s seeing for X?” The desire is further fueled by many companies releasing “benchmark reports.” Now, back to benchmarks.
OpenView Labs
SEPTEMBER 23, 2019
Benchmarks are the only check on whether or not a business is generating efficient growth. Benchmarks act as a swim lane for operating a business and allow operators to build a hyper-growth business that provide permission to believe. How Do I Know What My Benchmarks Are?
SaaStr
FEBRUARY 15, 2019
Chetan Puttagunta , General Partner @ Benchmark: Why does Chetan believe we have seen a strong decline in the per seat pricing model? Welcome to Episode 211!
OPEXEngine
JUNE 11, 2020
At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. Benchmarking Best Practices SaaS & Software Best Practices Benchmarking OPEX Benchmarking SaaS benchmarks Sales and Benchmarking
Tom Tunguz
APRIL 2, 2017
Cloudera is the second of the Hadoop players to go public. Last week, the company filed their S-1 and revealed a massive business. Cloudera generated $261M in revenue, counts 500 clients and grows those accounts by 43% annually. 18% of their customers run Cloudera software in the cloud, a surprisingly large number. Hortonworks is Cloudera’s chief competitor. In the following charts, we’ll compare the two businesses.
Tom Tunguz
FEBRUARY 20, 2017
Founded in 2006, Mulesoft is an 850 person company based in San Francisco that builds data integration tools. The company started originally as an open-source product and then focused on its paid offering. Today, the business generates nearly $200 million annually in revenue, and is growing at 70%. The business filed to go public last week , and the documents reveal a very impressive business operating at scale.
Tom Tunguz
JANUARY 1, 2017
Founded in 2008, AppDynamics is a leader in the application performance management space. AppDynamics technology helps engineers determine how software applications behave as users interact with them. Based in San Francisco, AppDynamics employs about 1200 people and has raised approximately $315M to date. The company filed their S-1 recently to take the company public.
InsightSquared
MAY 7, 2019
For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources. How many of your individual sales reps meet or beat the benchmark? Sales is the Growth Engine.
Tom Tunguz
SEPTEMBER 14, 2014
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Before diving into the benchmarks too deeply, I want to explain how different Veeva’s business is than most.
Tom Tunguz
AUGUST 27, 2014
Following this week’s post Benchmarking HubSpot’s S-1, Josh and Nikos raised an interesting question on Twitter. What are the right ways to benchmark SaaS companies from their early days through IPO? I have always used years-since-founding as the time axis to compare companies, because if I were a founder, that’s how I might think about benchmarks. Bucketing by ACV for revenue growth won’t shed much more insight into benchmarks than the raw median.
Tom Tunguz
OCTOBER 15, 2014
In the past, we have benchmarked the revenue per employee of large publicly traded SaaS companies and determined that the average is about $200k of revenue per person. In the chart above, Business Objects, a business intelligence company, sets the benchmark. But, that analysis examined revenue per employee that only one point in time. As Jesse Hulsing pointed out to me, examining this figure over five years reveals quite a bit about the health of the business.
Tom Tunguz
JANUARY 26, 2015
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Salesforce went public more than 10 years ago. This harbinger of subscription, internet delivered software created one of the most exciting waves in software and the single most valuable SaaS company today, worth $37B as of this writing.
Tom Tunguz
SEPTEMBER 29, 2014
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. The company has grown faster than the median SaaS business in our benchmark data set, recording a 176% CAGR over this three year period compared. MobileIron spent the most of any company in the benchmark set as a percentage of revenue in year 4 at 166% of revenue.
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