Baremetrics

AUGUST 20, 2021

We built the Baremetrics Benchmarks feature to answer these questions. We collected data from 800+ small and medium sized subscription companies using Baremetrics, anonymized it, and aggregated it to provide benchmark data for key metrics and subscription pricing. Where does the benchmark data come from? Table of Contents.

Benchmarks 97

Benchmarks Subscription Payment Features Churn 97

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The first few months of this year felt like a lot of churning in the market. Q4 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q4 starting with revenue.

Cloud 177

Cloud Software Azure AWS 177

User Pilot

NOVEMBER 28, 2022

Churn is the enemy of product growth. A churned user means lost future revenue and a waste of the resources it took to acquire them. How do you lower your churn rate and make sure all your users stick around? In this article, we’ll show you: What customer churn is and why it matters. Let’s get started.

Churn 98

Churn Software Review SaaS User Experience 98

Kellblog

JUNE 10, 2021

This is a quick post to share the slides I presented today at the GainSight Pulse Everywhere 2021 conference in a session entitled Net Dollar Retention, Key Benchmarks at $50M, $200M, and $1B in annual recurring revenue (ARR). In the session we discuss: The answer, which is 104%. Median NDR which is surprisingly invariant across size.

Benchmarks 110

Benchmarks Retention Subscription Payment Features 110

Chart Mogul

MARCH 1, 2023

We really like this metric because it encapsulates both the business’s ability to retain — so minimizing churn — and also their ability to upsell. Companies are a lot more similar at a particular average revenue per month (ARPA) band than you’d expect, especially in terms of retention. In contrast, 41.1%

Benchmarks 98

Benchmarks Retention B2C Business 98

OPEXEngine

DECEMBER 13, 2022

Most SaaS executives can relate to a friendly debate they’ve had at a board or leadership team meeting about what percentage of revenue should come from “upsells” to existing customers or what is “healthy churn.” That’s because benchmarks need to fit the business model and require context in order to be applied in a relevant way.

Benchmarks 52

Benchmarks Scale Headcount Software Review 52

Baremetrics

SEPTEMBER 9, 2021

When discussing the financial metrics for a SaaS company, revenue vs. profit is among the most common comparisons encountered. 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. What is revenue? What is revenue?

Payments 103

Payments Revenue Payment Services SaaS Payments 103

Totango

DECEMBER 28, 2021

Knowing how to fight customer churn is critical for keeping SaaS business models sustainable. The more customers you lose to churn, the more you have to invest in new customer acquisition to maintain your revenue, and the harder it becomes to grow your business. Invest in Your Customer Success Team.

Churn 95

Churn Strategy Technical Review Benchmarks 95

User Pilot

MAY 5, 2022

Churn analytics helps you detect your product friction points and understand why users stop using the tool. This is crucial if you want to know how healthy your SaaS product is and what should be improved to increase customer retention and lower the churn rate. A churn rate over 10 % indicates trouble. What is churn analytics?

Churn 98

Churn Retention Subscription Payment Features 98

User Pilot

AUGUST 10, 2023

Benchmarking this crucial metric against your industry helps you assess your standing relative to your competition. In this article, we’ll delve into the ins and outs of CAC, its industry-specific benchmarks, and the proven practices to improve it. Ideally, the CAC should be around 1/3 or 1/4 of the LTV.

Acquisition 96

Acquisition Benchmarks Customer Lifetime Value B2B 96

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud 177

Cloud Software Benchmarks Retention 177

Chart Mogul

APRIL 27, 2022

Churn gets a lot of bad press. In the early stages of building a company, churn gives you quick feedback which other metrics seldom do. You can run tests on your platform, and then see feedback within the next few … Churn gets a lot of bad press. In this post, we go deep into churn. What Is Churn?

Churn 52

Churn Benchmarks Metrics Revenue 52

Chart Mogul

MAY 24, 2023

I couldn’t be more excited to launch the 2nd edition of the ChartMogul SaaS Benchmarks Report. In this report, we analyze anonymized and aggregated data from over 2,100 SaaS businesses to bring you the latest SaaS benchmarks and growth trends. We share all our learnings and benchmarks in the full report. 54% in 2021).

Benchmarks 52

Benchmarks SaaS PayPal Retention 52

Chart Mogul

MARCH 22, 2022

Your monthly recurring revenue (MRR) just shot up. Your monthly recurring revenue (MRR) just shot up. Your monthly recurring revenue (MRR) moves every day. And, you can lose MRR when your: Customers cancel — Churn MRR Existing customers start paying less — Contraction MRR. Benchmarking MRR Movements by MRR Band s.

Benchmarks 52

Benchmarks Churn Startup Revenue 52

Chart Mogul

JUNE 1, 2023

A low churn rate means more loyal customers that contribute to sustainable business growth. Tips for tracking customer retention Four strategies to improve customer retention SaaS retention FAQ Is revenue retention more relevant to your business at the moment? Dig into the data to learn more and prevent churn. What happened?

Retention 90

Retention Metrics Benchmarks SaaS 90

The Angel VC

NOVEMBER 30, 2017

While doing some research for another post I just stumbled on this excellent overview from Pacific Crest on the churn rates of publicly listed SaaS companies. I’ve seen posts with churn benchmarks of public SaaS companies before, but this one is by far the most comprehensive collection I’ve seen and I think it’s very useful.

Churn 226

Churn SaaS Retention Metrics 226

Tom Tunguz

MARCH 24, 2019

The company grew from $61m to $331m in revenue in the past three years. The result is the company spends less than 10% of its revenue on R&D, which is less than half the median of the peer set. The company filed their S-1 on Friday. Zoom, growing at 148% and 119% in ‘18 and ‘19. of gross profit in the next year.

Metrics 268

Metrics Benchmarks Scale Acquisition 268

CustomerSuccessBox

APRIL 7, 2022

It’s undeniable that the SaaS model works differently and attracts revenue on a monthly or annual basis, unlike the on-premise software that deals with one-time payments. But with effective customer success, it’s possible to attain those extra gains from the SaaS revenue model. Stay tuned and read on to incur extra SaaS revenue.

Customer Success 98

Customer Success Payments SaaS Payments Revenue 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

OPEXEngine

JUNE 2, 2020

If your startup is a SaaS (or any other business with customers paying on a recurring subscription basis), churn is a critical metric – particularly net revenue churn and gross revenue churn – that will need constant measurement. What is revenue retention? Net Revenue Retention Rate.

Retention 52

Retention Churn Revenue Metrics 52

Baremetrics

MARCH 23, 2021

When looking at metrics and benchmarks for SaaS companies , the quality of their landing page is a big part of what starts people moving down the sales funnel. Other concerns affect these rates of conversion as well and studying all of them with the proper benchmarks in place; makes it easier for every company to succeed.

Benchmarks 75

Benchmarks SaaS Social Media Sales Funnel 75

ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. Q: How do you calculate net revenue retention for a usage-based model? I still think that net revenue retention works really well. They amortize the revenue 1/12 th every month. Q&A Recap.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

OpenView Labs

NOVEMBER 30, 2021

In 2021 the ‘ Rule of 40’ died, according to our latest 2021 Financial & Operating Benchmarks report that launched last week. . The ‘haves’, defined by growing quickly out of the gate and then maintaining 50% or faster revenue growth at significant scale, have seen their valuations skyrocket over the years.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. While SaaS is an amazingly transparent community with abundant benchmarking resources, there are much fewer publicly available studies that allow an analysis of the underlying drivers of “Rule of 40.”

SaaS 246

SaaS Technical Review Benchmarks Azure 246

CustomerSuccessBox

FEBRUARY 17, 2022

Most people judge the performance of a SaaS company by its Monthly Recurring Revenue (MRR) while evaluating a company by its Net Dollar Retention (NDR) can provide much more valuable insight. With this in mind, upgrades or downgrades and churn should be considered when evaluating a company’s performance. Why is NDR so important?

Benchmarks 52

Benchmarks Retention Churn Subscription 52

Baremetrics

APRIL 27, 2021

Revenue forecasting models help you plan your next phase of growth. The Baremetrics article "The SaaS Financial Model You'll Actually Use" describes how to create financial models you can use to plan out your next steps—even when your total revenue falls short and things don't go as expected. What is Revenue Forecasting?

Forecasting 89

Forecasting Revenue Sales Hiring Outsourced Development 89

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q4 ’22 revenue) / (Q4 ’21 revenue) - 1. net retention and CAC payback). .”

Cloud 161

Cloud Software Benchmarks Retention 161

Tom Tunguz

MARCH 18, 2019

the company generated $107M of trailing 12 month revenue, services 33% of the Fortune 500, grew revenue at 48% and has a net retention rate of 139% across 10,800 customers. This is the value of a cohort a year later inclusive of churn and expansion. The average customer is worth about $10,000.

Metrics 192

Metrics Benchmarks Software Review Engineering 192

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q1 ’23 revenue) / (Q1 ’22 revenue) - 1. net retention and CAC payback). .”

Cloud 161

Cloud Software Benchmarks Scale 161

User Pilot

DECEMBER 9, 2021

What is Net Revenue Retention? In this article, we’ll take an in-depth look at what Net Revenue Retention is, why it matters and the multiple approaches you can take to improve it. Net Revenue Retention (NRR) is a SaaS metric that calculates the percentage of revenue retained from existing customers over a specific period of time.

Retention 98

Retention Revenue Software Review SaaS 98

SaaStr

NOVEMBER 17, 2022

We track your progress and provide monthly executive level reporting on achievement against industry-recognized benchmarks and best practices. Upzelo helps you fight churn and increase retention through real-time data, customised offers and better customer feedback. We are not like other banks. appeared first on SaaStr.

Banking 213

Banking Payment Features Venture Capital Subscription 213

Chart Mogul

MARCH 23, 2023

Are you effectively expanding revenue from your existing customer base? Gross revenue retention (GRR) and net revenue retention (NRR) are the key metrics to understand how well … How good is your business at retaining customers? Are you effectively expanding revenue from your existing customer base?

Retention 52

Retention Metrics Revenue Scale 52

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 108

Benchmarks Startup Sales Hiring Compensation 108

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q3 ’22 revenue) / (Q3 ’21 revenue) - 1. net retention and CAC payback).

Cloud 130

Cloud Software Review Software Benchmarks 130

Tom Tunguz

APRIL 14, 2020

Sam Jacobs created the Revenue Collective , a group of more than 1700 sales professionals at some of the fastest-growing companies. With chapters across the US, Revenue Collective has broad reach within the sales community. Recently, Revenue Collective surveyed its members about the impact of coronavirus on businesses.

Sales Hiring 269

Sales Hiring Forecasting Sales Travel 269

OPEXEngine

DECEMBER 31, 2019

It tells you what percent of revenue from current customers you retained from the prior year, after accounting for upgrades, downgrades, and churn. Formulaically it’s beginning of period revenue + upgrades – downgrades – churn all divided by beginning of period revenue.

Benchmarks 49

Benchmarks Retention Churn Customer Success 49

ChurnZero

JUNE 9, 2023

Good sales teams typically get the budget, headcount and tools they desire because the function is tied to revenue. 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. A healthy benchmark is a 95% renewal rate in a given period.

Finance 98

Finance Metrics Customer Success Headcount 98