Clouded Judgement

DECEMBER 9, 2022

Every week I’ll provide updates on the latest trends in cloud software companies. I went back and looked at the last ~50 software IPOs and benchmarked them across a number of metrics. Revenue multiples are a shorthand valuation framework. Follow along to stay up to date! Can High Growth Businesses Become Profitable?

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

Clouded Judgement

JUNE 20, 2023

Q1 earnings season for cloud businesses is now behind us. 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. net retention and CAC payback). .”

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Cloud Software Benchmarks Scale 161

Clouded Judgement

DECEMBER 20, 2022

Q3 earnings season for cloud businesses is now behind us. 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. net retention and CAC payback).

Cloud 130

Cloud Software Review Software Benchmarks 130

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.

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Benchmarks Retention Subscription Payment Features 109

SaaStr

SEPTEMBER 19, 2023

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. Strive for $150k of revenue per FTE.

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Business Model SaaS Payments Payments Headcount 253

SaaStr

NOVEMBER 15, 2023

jasonlk) November 13, 2023 Not every area of SaaS and Cloud is seeing big “macro” impacts. Consistently Strong NRR — And Higher Than 2022 Crowdstrike has targeted a 120% NRR benchmark and it’s interesting to see how it’s fluctuated blow over the past 5+ years. 5 Interesting Learnings: #1.

Cybersecurity 262

Cybersecurity AWS Benchmarks Cloud 262

Unbounce

APRIL 15, 2021

That’s where industry benchmarks come in—and that’s why we’re thrilled to bring you a fresh (and free) Conversion Benchmark Report for 2021. Introducing the 2021 Conversion Benchmark Report. Or how your uncle’s cybersecurity software converts against your great aunt’s cloud accounting platform. Quite a family you have.).

Benchmarks 145

Benchmarks Machine Learning Artificial Intelligence AI Search 145

Clouded Judgement

JUNE 5, 2023

Fiscal Policy Fiscal policy involves the use of government revenue collection (taxation) and expenditure (spending) to influence a country's economy. Reserve Requirements: These are regulations on the minimum amount of reserves that banks must hold against deposits.

Payment Services 169

Payment Services Cloud Government Banking 169

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. Unlike later rounds, Series A pricing has no correlation to MRR or next-twelve-months (NTM) revenue, which is a proxy for growth rate.

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Benchmarks SaaS Pricing Investment 100

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.

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Benchmarks SaaS Technical Review Software Review 45

OPEXEngine

JUNE 29, 2020

If this is the first time you’re hearing about the Rule of 40, this financial framework helps you weigh up your revenue growth against your margins. Benchmark the health of your SaaS company, and. Our Virtual CFOs can help you identify opportunities to grow your business and revenue, and restructure your finances to optimize cash flow.

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Benchmarks SaaS Sales Hiring Scale 52

Andreessen Horowitz

DECEMBER 4, 2023

And, especially when you’re considering integrating a new technology platform into your business—like AI today, or cloud a decade ago—how do you invest in innovation without losing control of your runway and budget? Map your spend to your product roadmap, then attach an expected ROI and timeline for the expected return.

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Underperforming Technical Team Benchmarks CTO Hire New CTO 122

SaaStr

DECEMBER 21, 2023

PST, Jamin Ball, Partner at Altimeter Capital and author of Clouded Judgement , took us through the current state of SaaS and what we should expect in 2024. Software Revenue Multiples On the chart below, the darker blue line shows the median revenue multiple for 100 software companies. today, so the ten-year is up almost double.

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SaaS Software Metrics Revenue 254

Audacix

DECEMBER 3, 2022

Ensuring data security in the cloud is the responsibility of all parties involved. Both cloud service providers and their clients should use the best SaaS security best practices to protect data. Cloud consumers are tasked with providing security for the endpoints they use to access SaaS applications.

Cloud 52

Cloud Software SaaS Software Development 52

SaaStr

OCTOBER 31, 2019

Bessemer Venture Partners’ Alex Ferrara takes a look at trends and predictions for the cloud industry in 2019. One of the most popular sessions from SaaStr Annual, this presentation will provides an in-depth look at the cloud computing industry across Europe and globally. Want to see more content like this? A few more.

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Cloud Scale AWS Machine Learning 100

OpenView Labs

MAY 24, 2021

In OpenView’s 2020 SaaS benchmarks , we pointed out that public markets were starting to take notice of product-led companies. The companies on OpenView’s PLG index traded at a 50% revenue multiple premium to their SaaS peers, with the valuation gap widening over the course of the year. Atlassian has an R&D:S&M ratio of 2.9:1.

Scale 98

Scale Headcount Sales Hiring Benchmarks 98

Tom Tunguz

APRIL 2, 2017

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. Cloudera grew from $109M to $166M to $261M, more than 2x the revenue scale of Hortonworks. Hortonworks is Cloudera’s chief competitor.

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Benchmarks Metrics Software Review Scale 100

Clouded Judgement

AUGUST 25, 2023

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. The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions.

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Benchmarks Artificial Intelligence Data Software Review 246

Clouded Judgement

APRIL 4, 2024

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. RSC delivers a cloud native SaaS platform that detects, analyzes, and remediates data security risks and unauthorized user activities.

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Benchmarks Data Cybersecurity Cloud 117

OPEXEngine

MAY 18, 2021

According to Bessemer ’s State of the Cloud 2021 as of this January, there were a total of 527 private unicorns (a unicorn is a private company with a valuation over $1B), with a total cumulative value of more than $1.9 SaaS Metric #1 – Annual Recurring Revenue (ARR). Almost all revenue is from new contracts.

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SaaS Payments Metrics Payments Payment Services 98

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. Make profitability a 2020 priority. Is this slipping over time?

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

OPEXEngine

JANUARY 17, 2020

Downward trending cost of goods (COGs) benchmarks are improving SaaS gross margins. Average COGs in 2008 was 40% of revenue at the time of IPO, and gross margins averaged 60%. For companies IPO’ing in 2018, average COGs had dropped to 31% of revenue and average gross margins had increased to 68.5% Gross Margin Analysis.

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Outsourcing Services Trends Outsourced Development Technical Review 53

Stax

FEBRUARY 21, 2024

So, of course when it came to revenue-driving activities, Ford knew that success in marketing—and business—wasn’t about how much your marketing spend is, but how efficiently you spend it. For modern Software as a Service (SaaS) companies, the automobile is replaced by primarily digital and cloud-based solutions and software.

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SaaS Payments Payments Payment Services Stax 88

SaaStr

JANUARY 24, 2020

Where SaaS Stands Today: Benchmarks and Lessons from 16,426 SaaS companies. — State of the Cloud 2020 with Bessemer Venture Partners. — Build your SaaS on Customer Cash – a discussion on how to bootstrap, and if or when to use Revenue Financing. . — Masterclass: Churn is dead.

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Scale Leadership Churn Benchmarks 193

OPEXEngine

JUNE 9, 2021

Comparing current benchmarks to pre-COVID-19 benchmarks. The results are in and we’ve published the latest benchmarks incorporating 2020 actuals in our platform. SaaS Revenue Growth Benchmarks Didn’t Change A Lot, Except for Zoom and Early Stage Companies. Cost of Revenue and Gross Margins.

SaaS 52

SaaS Benchmarks Travel Entertainment 52

OPEXEngine

APRIL 26, 2022

Fast growth SaaS companies under $50M in revenues have a median 87% increase in new customers a year. There has been much focus on net dollar revenue expansion within existing customers in recent years, but there is only so far that your existing customer base can take you financially.

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Acquisition B2B Benchmarks SaaS 59

OPEXEngine

JULY 26, 2022

While valuation multiples in public markets have dropped dramatically over the past 6 months, the Magic Number (of Sales and Marketing Efficiency), Revenue Growth, and Rule of 40 still align well to top quartile multiples. . Revenue growth rates. These are metrics that every management team should also be watching and analyzing.

Marketing 52

Marketing SaaS Benchmarks Metrics 52

OPEXEngine

JUNE 25, 2020

Investors were competing aggressively for deals and growing SaaS budgets had companies spending significantly over revenues to acquire subscribers, market share and build new or expanded products. Bessemer published a growth benchmark showing that getting to $100M ARR in 10 years was good, but getting there in 5 years is best in class.

Benchmarks 52

Benchmarks SaaS Airlines Travel 52

OPEXEngine

JANUARY 25, 2022

The Bessemer Emerging Cloud Index (EMCLOUD) consistently tracks the outperformance of public SaaS public companies over NASDAQ, S&P 500, and Dow Jones indices. Average revenue to market cap multiples for Bessemer Cloud Index as of last quarter was 24x (for companies with revenues between $100M-$300M).

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Venture Capital Cybersecurity Forecasting Finance 52

Baremetrics

DECEMBER 7, 2023

Benefits of using Expense Categories in SaaS The main expense categories for any SaaS company are: Cost of Revenue Research & Development Sales & Marketing General & Admin These four categories are the standard for describing costs and expenses of any SaaS company from Salesforce to Zoom to your startup.

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Merchant Services Startup DevOps as a Service SaaS 90

OPEXEngine

JANUARY 13, 2021

Cloud and SaaS companies overall benefited from the dramatic shift to digital and remote work in the US and around the world since March 2020. That doesn’t mean that 2020 wasn’t hard to manage through, but overall as a sector, SaaS companies grew revenue and valuations skyrocketed. We are excited to serve the industry in 2021!

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Sales Recruiting Sales Hiring SaaS Benchmarks 52

OPEXEngine

JANUARY 30, 2020

CFOs will need to carefully track hiring and hiring efficiency. SaaS companies typically spend 65-80% of revenue on employee compensation. Investors look closely at customer retention and valuations are correlated with the revenue growth driven by customer acquisition and retention. 2020 Benchmarking. Customers, and.

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Sales Hiring Benchmarks SaaS Acquisition 49

OpenView Labs

FEBRUARY 3, 2022

As part of our last three annual finance and operating benchmarks surveys, we’ve asked nearly 2,000 startup founders and leaders of B2B SaaS businesses this simple question: “What’s keeping you up at night?”. This data point isn’t like our typical benchmarks. This aligns closely with how important growth has become.

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Sales Hiring Sales Recruiting Scale Startup 82

OPEXEngine

JUNE 11, 2020

At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. Subscription payments are smaller and cash flow is reduced initially, but once a base of recurring revenues is established, it can generate a great deal of cash flow. These terms affect revenue recognition.

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SaaS Payments Payment Solutions Subscription Payment Features 52

SaaStr

NOVEMBER 6, 2019

According to Harvard Business Review , companies that were instrumental in creating their categories accounted for 53 percent of incremental revenue growth and 74 percent of incremental market capitalization growth. How do I prove the value of CATEGORY X on revenue? How can I convince my CEO that CATEGORY X is important?

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Scale Sales Recruiting Marketplace as a Service Forecasting 109

OPEXEngine

OCTOBER 25, 2019

And Microsoft, now the largest SaaS vendor in the world, just beat analysts’ expectations announcing $33B in revenue in the first quarter of 2020 – and new guidance signaling continued growth for the rest of the fiscal year. Microsoft revenues represent 18% of the total market, followed by SalesForce at 11.5%

Trends 40

Trends Marketing SaaS Azure 40

Baremetrics

AUGUST 30, 2021

Connect Baremetrics to your revenue sources and start seeing all of your revenue on a crystal-clear dashboard. Sign up for the Baremetrics free trial and start seeing more into your subscription revenue now. Annual revenue iii. Annual revenue This includes your total subscription and usage-based revenue for the year.

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SaaS Outsourced Development Payment Services Payments 97