SaaS Finance Essentials


In this article, we shall get back to basics: What is SaaS finance, and what financial phases can you expect your business to go through? Baremetrics can help you improve your SaaS finance model thanks to our robust forecasting capabilities in Flightpath. What Is SaaS Finance?

SaaS Financial Benchmarks by Baremetrics


For every decision-maker in a SaaS company, understanding SaaS financial benchmarks makes a proper interpretation your internal performance metrics possible. All the data your startup needs 1 What are SaaS financial Benchmarks? 2 Why use SaaS Financial Benchmarks?


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SaaS Finance MeetUP – Scaling Finance


About two weeks ago, we invited our customers to a private roundtable, virtual discussion on Scaling Finance. This is something that we do every quarter in what we call the SaaS Finance MeetUP. World-class Finance org chart – Bain & Company.

Benchmarking and Budgeting Go Hand in Hand


In working with hundreds and hundreds of SaaS CFOs over the past 15 years, I’ve noticed that effective and strategic CFOs incorporate accurate benchmarking into the daily business of the company and especially into the budgeting and planning process. .

The Startup Funding & Financing Guide


There are more funding and financing options for startups today than there ever have been before. There’s also been an explosion in debate and transparency about navigating startup funding and financing. Let’s explore the funding and financing options for your startup. Company C was funded by pre-orders from customers, a friends and family round, and then through revenue-based financing for a period of time. Equity Financing. Revenue-based financing.

OPEXEngine joins Bain & Company To Boost Operational Benchmarking Capabilities For Software Companies


OPEXEngine provides SaaS and Software companies with comprehensive and accurate analytics and benchmarks to help executives understand and improve operational performance. OPEXEngine’s proprietary benchmarking capabilities help drive key strategic and operational decisions and growth.

3 Must-Have CFO Skills: Operating Finance, Strategy and Communications


Corporate finance experience is declining, while investment banking is rising, as a path to the CFO seat, CFO Dive data shows. “Not all finance executives can do that.” “I think that gave me a good acceleration in my finance acumen.”

“What’s a Good Conversion Rate for My Landing Page?” [Conversion Benchmark Report 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. Conversion Intelligence Insights: Beyond the Benchmarks.

2020 Expansion SaaS Benchmarks: Getting Back to Hyper-Growth

OpenView Labs

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?” The 2020 Expansion SaaS Benchmarks report includes tons of more info, including data on: Founder attitudes.

Series A SaaS Startup Benchmarks for 2018

Tomasz Tunguz

The sample size is on the smaller side; there are companies who raise Series Bs at less ARR than the median A for other factors; this analysis ignores space, competitive dynamics, team composition and auction pressure of financings 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.

Q2 2020 Results for SaaS Companies – A Mixed Bag


We recently fielded a quick survey of SaaS companies to help the SaaS Finance community better understand peer company YTD revenue performance. Second quarter numbers are in and results are mixed. Overall, companies were up for first half results 2020, but second quarter was tough.

2019 Benchmarks: Are You Burning Too Much Cash?

OpenView Labs

To help out, we crunched the burn rate figures from OpenView’s 2019 Expansion SaaS Benchmarks study. Reaching profitability allows any company to control their own destiny and to hedge against potential financing uncertainty. Otherwise, you’ll risk running through your cash reserves and with dim prospects for additional financing. Check out our new Data Explorer feature , which allows you to visualize your company’s peer benchmarks to see how you stack up.

1 Key SaaS Sales Metric to Fine-Tune Sales Productivity


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. These processes are important to track accurately and benchmark to achieve the SaaS performance expected in the market. First and foremost, are you meeting or beating the benchmark for sales cycles from similar types of companies? Source: OPEXEngine Sales Planning benchmarks 2019.

5 Big Financial Integration Mistakes and How to Avoid Them


For most companies following a best-in-class technology strategy, the finance system is the hub for the other systems they use. As you consider how to connect other services to finance, consider these five big risks and best practices that can help you get the most out of your connections.

SaaS FP&A – Are You Up to the Challenge?


Over the past decade benchmarking software and SaaS companies , I’ve had the chance at OPEXEngine to work with hundreds of amazing Finance execs who work incredibly hard at getting the right data to support their company’s goals. I’ve been a business partner of Finance and the CFO in several public companies in past lives, and SaaS Finance today is a more demanding operation than Finance was in traditional software companies. SaaS Finance Benchmarks.

Why Financial Modeling Is Like A Superpower


According to an Adaptive Insights CFO Indicator Report, 71% of finance teams manage data from at least three sources. Blog financial benchmarking Financial Benchmarks financial metrics revenue growth saas SaaS benchmarking

Benchmarking Mulesoft S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

Cash flow from operations breakeven means the business generates as much cash as it consumes setting aside financing and investing activities. 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%.

From Real-Time Insights to Future Time


The one true currency of a finance professional. Few finance functions have landed there yet, but they all have the same aspiration. Now let’s dig into what’s happening in the insight space in the disrupted finance value chain. Insight.

Benchmarking Netsuite's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

Netsuite began developing ERP (enterprise resource planning) tools to help companies manage their finances, expenses and supply chain. Founded in 1998, Netsuite is worth about $7.7B, making it the sixth largest SaaS compay behind Salesforce, LinkedIn, Workday, ServiceNow and Splunk. Over time, Netsuite has added a few more product lines including ECommerce platform, CRM, business intelligence and a professional services management product.

Benchmarking WorkDay's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

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. WorkDay financed this huge investment by coupling long-term, near-million-dollar agreements and nearly $200M in venture capital.

A Deep Dive Into e-Commerce Gross Margin


Gross Margin Benchmark. It’s hard to establish an absolute gross margin benchmark since markets for each product can be so different. This article originally appeared on Abel Finance by Rob te Braake.

Poll Results – Changes to SaaS Sales Quotas, Territories, and Commission Payments


OPEXEngine fielded a second quick poll to the SaaS Finance community between April 2-April 14, 2020 – over 60 individual companies participated, ranging from companies with under 100 employees to companies with more than 5000 employees. BENCHMARK TO WIN.

4 Ways Financial Leaders Can Become More Data-Driven


However, despite the growing importance of data , many CFOs and Finance Leaders feel they’re underusing it in their roles as business leaders and advisors. How do your benchmarks compare to the performance of similar organizations?

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Benchmarking New Relic's S-1 - How 7 Key SaaS Metrics Stack Up

Tomasz Tunguz

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. Many SaaS companies move to annual pre-pay to be able to finance their own growth more efficiently and to reduce churn.

2020 SaaS C-Suite Evolving to Support Product and Customer Lifecycle Management


A Couple SaaS Generations Ago… Traditional software companies managed sales, product development, finance and HR in siloed organizations by function. Separate Sales, Marketing, R&D, Accounting/Finance organizations were headed by a senior executive.

SaaS Cost of Goods Trending Down – By How Much?


Downward trending cost of goods (COGs) benchmarks are improving SaaS gross margins. Cliff Rosell, founder Lazy Genius Solutions (an outsourced finance and RevenueOps firm) says, “I’ve been seeing the difference between Customer Success and Customer Support defined as Reactive (Customer Support), Proactive (Customer Success).”. Benchmarking SaaS Cost of Goods and Gross Margins.

SaaS 2020: Will an Avalanche of VC & PE Capital Change 2020 Budgets?


There will be greater difficulty finding well qualified developers, sales, marketing and even Finance professionals, especially in hot locations like the Bay area, Boston, Austin, Denver, Seattle, Toronto, and Vancouver. Now, more than ever, CFOs need to focus closely on how key metrics and benchmarks are trending for: Hiring rates and expense. 2020 Benchmarking.

Subscription Show Boston – November 4-6, 2019


I’m thrilled to be speaking there about SaaS Metrics and Benchmarks. I’ll be talking about how investors are evolving the KPIs by which they value SaaS going into 2020, the latest on the Rule of 40, and how companies are bringing together operations and Finance to better instrument growth. Are you a CEO or leader, marketer, finance and payment, or product and technology professional? The Subscription Show is coming to Boston in a few weeks at the World Trade Center.

Why More Funding Won’t Magically Fix Your Startup

Mucker Capital, a benchmarking and research service, analyzed 3,200 internet startups and found that 74 percent “fail due to premature scaling.” Finance Pitching & Fundraising

How to Measure Churn: Net Revenue Retention vs. Gross Revenue Retention


This article was contributed by Lighter Capital, this article originally appeared on The Startup Finance Blog. SaaS Metrics benchmarks churn rate Gross Revenue retention Net Revenue Retention Opexengine SaaS metrics

Including "blockchain" in your marketing copy powers willingness to pay


We asked a control group their willingness to pay for a fake finance product. We then asked a demographically congruent group about the same finance product, but with a variation of “with 'Blockchain' technology” in the marketing copy. SaaS Metrics profitwell SaaS benchmarks profitwell report willingness to pay retention blockchain crypto cryptocurrency language marketing product

5 Financial Reports Every Business Should Be Running


To employ a data-driven finance approach, CFOs need to move finance functions up the analytic value chain to offer more detailed analyses, better forecasting, and increasingly granular information on products, suppliers, customers, and more. There are three core sections to a cash flow statement – operating activities, investing activities, and financing activities. Can financial reporting analysis really help your business grow? Absolutely!

The Top 5 Growth Initiatives for SaaS Investment in 2021


In today’s post, we review the results regarding the “Top Growth Initiatives for 2021,” “Internal Investments,” and “Strategic Finance Goals” that those surveyed are planning to make. . Top Finance Growth Initiatives in 2021. Finance Department Investments.

NEW POLL – Remote Work & Office Space Planning


To continue the conversation on working remotely, we invite you to join us for our upcoming webinar on April 28th at 1pm EST when we discuss Working Remotely as Finance Professionals – Best Practices During the COVID-19 Crisis. Benchmarking your company is more important now than ever.

Top Factors Impacting the SaaS Business Environment for 2021 – Part One


The results are interesting and a good view into the dynamic world for which SaaS Finance is budgeting and planning right now. Finance Leaders Regret Putting the Brakes on Hiring in 2020. Benchmarking against peers and market leaders is more timely and important than ever.

CEOs of Zapier, Walkme and Dialpad: How to Build Your First Management Team (Video + Transcript)


Everyone here I think actually has a different background that they bring to the table, whether it’s a programmer, whether it’s in finance, whether it’s in law. They work with the CEO to figure out the financing strategy.

Usage-Based Pricing Playbook: Customer Success Is A Mindset, Not Just a Job

OpenView Labs

45% of expansion stage SaaS companies now say they have a usage-based or consumption-based pricing model, according to data from OpenView’s forthcoming 2021 Finance and Operations benchmarks report. . Finance: Reinvent the traditional SaaS metrics playbook.

Member Spotlight – Sage


Typically, we work with CFOs, chief people officers, and senior finance and HR executives.”. How do you use benchmarking, and the BenchmarkEngine to help with your business? “We Member Spotlight Series: An Interview with Dominic Ballinger, Director of FP&A and Integration at Sage.

Hybrid & Remote Work for SaaS Companies is Here to Stay in 2021 – Part Three


In today’s post, we review the 2021 plans regarding “Hybrid & Remote Work Models for 2021,” and “Office Space Planning” from approximately 100 senior Finance executives in SaaS & cloud companies.

Calculating Growth Rates in SaaS


Growth rates in personal financial savings Growth rates can also be applied to personal finance. Even better, these growth metrics can be weighed against industry benchmarks to analyze growth within the proper context.

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