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. The promise of SaaS is that growth in the early years leads to profits in the mature years. Follow along to stay up to date!

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

Clouded Judgement

APRIL 12, 2023

Q4 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. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g.,

Cloud 161

Cloud Software Benchmarks Retention 161

Tom Tunguz

NOVEMBER 18, 2021

71% is the public SaaS company median. Using a linear regression on current cloud valuations and a combination of key metrics, about 41-42x which implies about $28-$32b. The company’s metrics all recorded positive gains including gross margin moving from 60% to 70%, which is impressive for a business providing hardware.

CTO Hire 352

CTO Hire CTO Coach Benchmarks Scale 352

SaaStr

DECEMBER 14, 2023

“Doubling Down” is a new series where we hear from top B2B SaaS investors on their most recent activities and takes on the current market. What’s the #1 bit of advice you’d give to SaaS founders today? HashiCorp __ Mary is a partner at Bessemer, where she primarily focuses on cloud software investments.

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Venture Capital Benchmarks Cloud compliance 215

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. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g.,

Cloud 161

Cloud Software Benchmarks Scale 161

SaaStr

APRIL 27, 2023

I was curious the other day how many of the recent Cloud and SaaS IPOs had founders that were equal co-founders from an equity perspective. Overall, I learned a lot from this exercise: Only 4 of the top recent Cloud/SaaS IPOs had equal or equal-ish co-founders in terms of equity. Well, I was wrong.

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SaaS Cloud Benchmarks Data 241

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. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g.,

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). The rise of NDR as the SaaS metric of choice. In the session we discuss: The answer, which is 104%.

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Benchmarks Retention Subscription Payment Features 109

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.

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Cybersecurity AWS Benchmarks Cloud 255

Tom Tunguz

FEBRUARY 24, 2016

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. 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.

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Benchmarks SaaS Pricing Investment 100

SaaStr

DECEMBER 21, 2023

What’s really going on in the world of SaaS right now, from software valuations to business performance to interest rates? 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. today, so the ten-year is up almost double.

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SaaS Software Metrics Revenue 247

Tom Tunguz

SEPTEMBER 7, 2023

Words like SaaS might be SAS the software company, SaaS like Software as a Service, or sass, meaning someone who is cheeky or rude. While benchmarks are often fraught with nuances, the consensus amongst testers is Nvidia is about 3x faster to run these models. The context matters to disambiguate. My bet is on the fourth.

Machine Learning 171

Machine Learning Artificial Intelligence Cloud Benchmarks 171

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. It only takes 6 to 8 minutes to complete.

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Benchmarks Compensation Sales SaaS 125

Audacix

DECEMBER 3, 2022

SaaS security related data breaches through cybercrimes are not a new thing in the digital world. The same problems affect companies that rely on Software-as-a-Service (SaaS) applications. SaaS providers are constantly releasing security patches to make their applications more secure. However, cybercriminals also don’t sleep.

Cloud 52

Cloud Software SaaS Software Development 52

OPEXEngine

JUNE 29, 2020

Here’s a common dilemma that all SaaS business owners face — should you pursue growth at all costs, or is it more important to make sure that your margins are healthy, and that you’re not losing money with each new customer that you bring on board? Benchmark the health of your SaaS company, and. Enter the Rule of 40!

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Benchmarks SaaS Sales Hiring Scale 52

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 14, 2022

BOSTON, June 13, 2022 – OPEXEngine, the world’s leading SaaS benchmarking platform, today launches its new R&D benchmarks solution. The benchmarks help technology executives invest in R&D with more confidence by comparing their own costs and performance with similar organizations. About OPEXEngine.

Technical Review 45

Technical Review Benchmarks Outsourcing Services Development Team Review 45

SaaStr

SEPTEMBER 19, 2019

I was curious the other day how many of the recent Cloud and SaaS IPOs had founders that were equal co-founders from an equity perspective. Overall, I learned a lot from this exercise: Only 3 of the top recent Cloud/SaaS IPOs had equal co-founders in terms of equity. Well, I was wrong. 5 had solo founders, or close to it.

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SaaS Cloud Benchmarks Development 201

OPEXEngine

SEPTEMBER 15, 2021

OPEXEngine provides SaaS and Software companies with comprehensive and accurate analytics and benchmarks to help executives understand and improve operational performance. Investors and software company management need high quality and neutral benchmarks to assess their operational performance, reduce risk and improve efficiency.

Software Review 52

Software Review Benchmarks Technical Review Development Team Review 52

Stax

FEBRUARY 21, 2024

For modern Software as a Service (SaaS) companies, the automobile is replaced by primarily digital and cloud-based solutions and software. And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever.

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SaaS Payments Payments Payment Services Stax 88

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 The following 4 metrics are critical to the valuation of a private SaaS business. SaaS Metric #2 – Growth Rate.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

OPEXEngine

JULY 27, 2021

This is something that we do every quarter in what we call the SaaS Finance MeetUP. It is an exclusive meeting limited to Finance executives benchmarking with us and governed by Chatham House Rules. It is a great way for Finance leaders to share best practices, ask questions, and get to know peers in the SaaS industry.

Finance 52

Finance Outsourcing Services Scaling SaaS 52

User Pilot

MAY 13, 2024

Marketing Intelligence Cloud – Analyze marketing data to generate meaningful insights and forecast results. Social media analytics – Access in-depth campaign analytics and custom reports and compare core metrics with industry benchmarks to optimize marketing performance.

Software 105

Software Marketing Scale Social Media 105

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. More than 500 SaaS companies participated in this year’s survey, which covered topics like financial performance, product led growth adoption, founder priorities and much more. But benchmarks alone are not enough. Make profitability a 2020 priority.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

User Pilot

OCTOBER 26, 2023

We also share benchmarks, important metrics to track, and best practices. When investing in third-party SaaS applications, you still need to assess estimated returns, implementation, and staff onboarding and training costs but not development or maintenance costs – that’s on the vendor. Why is important for business growth ?

Outsourcing Services 105

Outsourcing Services Software Outsourced Development SaaS 105

SaaSOptics

APRIL 22, 2022

The run-up in SaaS stocks in 2020 and 2021, and then the subsequent sell-off this year may not be telling you what you think it is. The truth is that valuation multiples for most public SaaS companies has barely moved in the last 24 months, yet the indexes tracking public stock multiples have swung wildly—what’s going on?

SaaS 78

SaaS Construction Trends Benchmarks 78

Baremetrics

DECEMBER 7, 2023

The main benefits of categorizing your SaaS company’s expenses are more accurate metrics and forecasts, and getting a better understanding of your company’s overall spending. Here’s an overview of the series: Part 1: How to Categorize Expenses in a SaaS Startup v2.0 This is a v2.0 New Gross Margins?

Merchant Services 90

Merchant Services Startup DevOps as a Service SaaS 90

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. Remember this time, a year ago? in 2019 to 98% in 2020.

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. Fast growth SaaS vendors over $100M average 25-30% increase in new customers annually. Customer acquisition cost (CAC) is arguably one of the most important metrics for fast-growing B2B SaaS companies.

Acquisition 59

Acquisition B2B Benchmarks SaaS 59

OPEXEngine

JANUARY 17, 2020

Downward trending cost of goods (COGs) benchmarks are improving SaaS gross margins. Competitive service offerings and new technologies are driving down costs to maintain SaaS infrastructures. To see how COGs and gross margins are changing, take a look at these charts showing SaaS companies that IPO’ed in 2008 versus 2018.

Outsourcing Services 53

Outsourcing Services Trends Outsourced Development Technical Review 53

OPEXEngine

JANUARY 13, 2021

Putting aside everything else, let’s just focus on what’s changing in SaaS in 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. Fast-growth SaaS will take advantage of investor attention to SaaS, and SaaS IPOs will be strong.

Sales Recruiting 52

Sales Recruiting Sales Hiring SaaS Benchmarks 52

User Pilot

NOVEMBER 26, 2023

Boosting and optimizing the conversion rate is vitally important for all product managers and savvy SaaS owners. The average conversion rate differs across different SaaS products depending on the company's industry, target audience, product offering, and more. As a benchmark , web page conversion rates hover around 7%.

Data 105

Data SaaS Trends Churn 105

Tom Tunguz

APRIL 2, 2017

18% of their customers run Cloudera software in the cloud, a surprisingly large number. 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. Hortonworks is Cloudera’s chief competitor.

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Benchmarks Metrics Software Review Scale 100

OPEXEngine

JUNE 25, 2020

By early 2020, investment in the SaaS industry was at record highs and expected to hit even higher peaks. TechCrunch wrote that VCs were putting an extra $1B into SaaS in 2020, in fewer deals, so more money per company. Cash runway and P&L strength are the focus of investors and SaaS management alike. In early Feb.,

Benchmarks 52

Benchmarks SaaS Airlines Travel 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

User Pilot

MAY 20, 2024

Higher scores indicate more positive customer feelings and benchmarks differing across sectors (in SaaS being 40). A good sentiment score can vary widely depending on the industry and specific benchmarks. The customer sentiment score quantifies customers’ emotions and attitudes towards your brand, ranging from 0 to 100.

Scale 105

Scale Social Media Benchmarks Software Review 105

OPEXEngine

JULY 26, 2022

OPEXEngine looked at 32 public Cloud companies under $1B to see how their current Market Cap to current TTM revenues tracked against: Magic Number. We tend to see the same picture emerge for private SaaS company valuations. The post What KPIs are producing the highest SaaS valuations in today’s market? Revenue growth rates.

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Marketing SaaS Benchmarks Metrics 52