ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. A [Rob]: That’s more of a question for the earlier stage investing in the public market. A private equity investor once said that he only invests in companies where that’s 40 or higher. I will say this much.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

SaaStr

NOVEMBER 17, 2022

We take on the heavy lifting without requiring you to invest in additional resources. We track your progress and provide monthly executive level reporting on achievement against industry-recognized benchmarks and best practices.

Banking 235

Banking Payment Features Venture Capital Subscription 235

ChurnZero

NOVEMBER 11, 2022

Overall, the industry’s top five measurements of success are NRR, gross revenue retention (GRR), churn rate, logo retention rate and expansion revenue—while “softer” metrics like NPS appear only further down the list. This dedicated role shows investment in Customer Success and a greater level of maturity in the function. .

Leadership 98

Leadership Trends Customer Success Investment 98

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Extra pressures around optimizations still exist, however gross churn levels have stabilized, and commentary on earnings calls suggest conversations around new bookings are starting to pick up. net retention and CAC payback).

Cloud 169

Cloud Software Benchmarks Retention 169

Tom Tunguz

MARCH 18, 2019

This is the value of a cohort a year later inclusive of churn and expansion. Sales efficiency is a measure of the marginal gross profit generated by a dollar invested in sales and marketing. Let’s compare PagerDuty to other recent software IPOs for companies selling to engineers at their IPO.

Metrics 195

Metrics Benchmarks Software Review Engineering 195

Tom Tunguz

OCTOBER 9, 2013

One number investors use to benchmark SaaS startups across sectors and industries is sales efficiency. There are a handful of variants of this metric, sometimes called the magic number, but ultimately they all aim to provide some sense of the incremental revenue returned by sales and marketing investment.

Benchmarks 120

Benchmarks Sales Recruiting Startup Sales 120

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. Below is my list of the six most important benchmarks and observations from that report. Median Monthly Revenue Churn is 0.75%.

Benchmarks 111

Benchmarks Startup Sales Hiring Compensation 111

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. How to Use The SaaS Benchmarks Modeling Tool. Tab 1 – Data Input.

Benchmarks 40

Benchmarks SaaS Metrics Retention 40

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn).

Cloud 161

Cloud Software Benchmarks Retention 161

ProfitWell

OCTOBER 16, 2019

It’s the question on every SaaS founder’s lips: Is my churn rate too high? A “good” churn rate for one company might be terrible for another. Worse, comparing average churn rates across different markets and industries will leave you mired in confusing statistics and contradicting studies. What is the average churn rate?

Churn 55

Churn SaaS Payments Payments Payment Methods 55

Kellblog

OCTOBER 30, 2022

One of my new benchmarking themes is that people need to pay more attention to matching their benchmarks with their aspirations. Gross churn of 14%, in line, perhaps a tad high, relative to my guess. 2] As I said in a recent speech, it’s the difference between benchmark off all SAT test takers and Ivy League applicants.

Metrics 135

Metrics SaaS Benchmarks Churn 135

OpenView Labs

NOVEMBER 12, 2020

When we were preparing the 2020 expansion SaaS benchmarking survey, our biggest question was: “How did COVID-19 and the economic downturn affect private SaaS companies?” Despite an uptick in logo churn attributable to COVID-19, net dollar retention was as strong as ever. Folks prioritized their existing customers.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

ChurnZero

JUNE 9, 2023

CS team members at all levels would do well to learn about metrics that can better articulate the effect they have on churn, renewals, and expansions. This will help the finance team relate proposed investments aimed at supporting renewal with business growth. A healthy benchmark is a 95% renewal rate in a given period.

Finance 98

Finance Metrics Customer Success Headcount 98

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn).

Cloud 161

Cloud Software Benchmarks Scale 161

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.

Benchmarks 119

Benchmarks Metrics SaaS Healthcare 119

Kellblog

MARCH 29, 2023

Phrasing these strategies in terms of songs/albums: (1) Staying Alive , (2) Get Back [to where you once were valued], and (3) Born to Run [convince VCs that, “tramps like us, baby, we were born to run” — i.e., that we have a lean machine where ARR is a predictable output of VC investment.]

Metrics 123

Metrics Compensation Benchmarks Interviewing 123

Tom Tunguz

NOVEMBER 16, 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. In industry parlance, this is called negative revenue churn. But churn doesn’t seem to be a concern for New Relic.

Benchmarks 100

Benchmarks Underperforming Technical Team Metrics Sales Hiring 100

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn).

Cloud 130

Cloud Software Review Software Benchmarks 130

Tom Tunguz

OCTOBER 15, 2013

Churn, masked by growth, becomes a limiting factor of growth. How much should the business invest in managing churn? Our SaaS benchmarks from earlier this week tell us the average public SaaS company has a 3% monthly revenue churn or a 2 year lifetime and a sales efficiency of 0.8,

Churn 100

Churn Startup Management Scale 100

Tom Tunguz

DECEMBER 10, 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. In order to achieve this growth, Box has invested a huge amount of capital. to 0.54, which is about 36% less than the median.

Benchmarks 100

Benchmarks Sales Hiring Metrics SaaS 100

User Pilot

MAY 2, 2024

Key metrics to measure customer retention include customer retention rate , customer churn rate , customer acquisition cost, and customer effort score. Use product analytics to find friction points and anticipate user churn. Monitoring user behavior reveals negative trends linked to churn. Retention metrics: Churn rate.

Retention 74

Retention Metrics Strategy Scale 74

Tom Tunguz

AUGUST 26, 2014

To grow at that pace, HubSpot has been investing aggressively in sales and the company is widely respected for its content marketing prowess. Given the current revenue churn rates, about 70% of customers on a dollar basis will be break-even or profitable, so the unit economics work. years before they become profitable on a unit basis.

Benchmarks 111

Benchmarks SMB Metrics SaaS 111

Tom Tunguz

SEPTEMBER 21, 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 went public in 2013 and we’ll use data from their S-1 through 2013 to benchmark the business.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

OpenView Labs

SEPTEMBER 23, 2019

We’re living in a remarkable era for investing. 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?

Benchmarks 40

Benchmarks Data SaaS Scale 40

User Pilot

APRIL 29, 2024

In this article, we examine what makes SaaS renewal management so important and explore renewal strategies for preventing customer churn and increasing upsells. A proper SaaS renewal management system tracks user behavior to identify customers at risk of churning. Instead, invest in a self-serve support process.

SaaS Payments 77

SaaS Payments Business SaaS Payment Solutions 77

Clouded Judgement

AUGUST 25, 2023

The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions. There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses.

Benchmarks 246

Benchmarks Artificial Intelligence Data Software Review 246

Kellblog

NOVEMBER 23, 2022

burn) by failing to invest in the second half of 2023 for growth in 2024. Churn ARR is the sum of ARR lost due to shrinking customers (aka, downsell) and lost customers. Ending ARR is starting ARR + new ARR – churn ARR. It’s + churn ARR if you assign a negative sign to churn, which I usually do.) 2024 and 2025).

Technical Review 117

Technical Review Software Review Forecasting Churn 117

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. We’re all about new logos – we can’t turn away deals.”.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

Stax

FEBRUARY 21, 2024

By analyzing the SaaS Magic Number, SaaS companies can determine how well their revenue-driving investments (in sales, marketing, and customer retention) are translating into actual revenue growth. Focus on lowering marketing costs and optimization before investing more. How Do You Calculate the SaaS Magic Number?

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

Tom Tunguz

JUNE 8, 2015

ServiceNow reports its upsell rate, which is equivalent to a negative net churn. Impressively, the company is investing more and more into engineering - exceeding 20% of revenues last year - likely developing broader feature set to enable additional up and cross sells. ServiceNow has recorded a better than 1.0 at $93M in revenue.

Benchmarks 111

Benchmarks Metrics SaaS Investment 111

Baremetrics

SEPTEMBER 15, 2021

The growth of active users Changes in Monthly recurring revenue (MRR) Churn Rate Expansion MRR See all of your financial data with Baremetrics. If you’re considering whether or not to invest money in a certain area of business, you might want to look at how that area of business is growing. What is a Growth Rate? Try Baremetrics Free.

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

InsightSquared

MAY 7, 2019

When scaling the business, sales typically averages roughly 30% of revenue, so therefore sales spend is one of the biggest investments a company can make. 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.

Scale 102

Scale Sales Hiring Metrics Sales 102

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. The CAC payback period benchmarks may vary, depending on the product as well as your niche. What retention strategies can you implement to reduce the churn rate? Let’s get right to it!

SaaS Payments 94

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 94

SmartKarrot

MAY 28, 2020

Churn rate is the rate of customers or revenues lost by a company in a given time period. It is a common belief in the SaaS industry that the acceptable SaaS churn rate benchmarks is around 5% annually. There are many factors that decide what is an acceptable benchmark and what exceeds it. The kind of product.

Benchmarks 10

Benchmarks Churn Technical Review SaaS 10

Baremetrics

SEPTEMBER 9, 2021

When a SaaS product or service has been developed, tracking the ROI (return on investment) involves always keeping revenue vs. profit at the top of mind. The reason is simple: revenue does not represent your company’s “true” return on investment. Check out more of what the Open Benchmarks say here , or start a free trial today!

Payments 103

Payments Revenue Payment Services SaaS Payments 103

Clouded Judgement

APRIL 4, 2024

The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions. There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses.

Benchmarks 117

Benchmarks Data Cybersecurity Cloud 117

OPEXEngine

AUGUST 31, 2021

Editor’s note: We’d like to thank our friends at OPEXEngine for contributing their benchmarks, insights, and expertise to this article. Lauren Kelley, CEO of OPEXEngine , a leading independent third-party provider of SaaS benchmarks, provides a great illustration of tech debt using the analogy of how financial models are constructed.

Technical Review 52

Technical Review Underperforming Technical Team Software Review Scale 52