Kellblog

MAY 24, 2022

I have to say it was a combination of luck and foresight that I started talking with Allan Wille and Lauren Thibodeau about capital efficiency as a potential topic for their Metric Stack podcast many months ago. Using my formula (= 1/CCS) for aggregate burn, here are some benchmarks. < < 1 is amazing (i.e., 1-2 is good (i.e.,

Metrics 105

Metrics Venture Capital Benchmarks Finance 105

OPEXEngine

JULY 27, 2021

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. It is an exclusive meeting limited to Finance executives benchmarking with us and governed by Chatham House Rules.

Finance 52

Finance Outsourcing Services Scaling SaaS 52

FastSpring

APRIL 26, 2022

In part one, we cover benchmarks and common churn formulas. Part I: SaaS Churn Benchmarks Part II: 5 Proven Strategies for Reducing SaaS Churn Part III: Churn Definitions and Additional Resources. Part I: SaaS Churn Benchmarks. When we set churn benchmarks for SaaS companies, there’s so much to consider.

Benchmarks 121

Benchmarks Churn Payments SaaS Payments 121

SaaSOptics

DECEMBER 7, 2021

How to Raise Capital: Preparation, Benchmarks, and Best practices [Webinar Recap]. They shared their experiences and insights into the importance of good data hygiene, how it impacts forecasting and funding, and using industry benchmarks to determine valuation. Metrics Matter in the Investor Pitch Deck. All Steak, No Sizzle.

Benchmarks 77

Benchmarks Scale Venture Capital Outsourced Development 77

OPEXEngine

SEPTEMBER 9, 2021

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. . Use Benchmarks At the Start of the Budgeting Process.

Benchmarks 52

Benchmarks Sales Hiring Headcount Customer Lifetime Value 52

FastSpring

APRIL 2, 2019

Understanding SaaS metrics can be a bit daunting when you first look at your financial reports. To spare you the headache, here’s a quick guide to help you make sense of subscription finance—starting with monthly recurring revenue. Stay tuned for the next article in our subscription finance series! Why is MRR an important KPI?

Finance 95

Finance Subscription Payment Features Revenue 95

InsightSquared

MAY 7, 2019

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. Typical SaaS Sales Metrics. Underlying those metrics are processes which can improve or reduce performance in each of the above metrics.

Scale 102

Scale Sales Hiring Metrics Sales 102

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.

Technical Review 45

Technical Review Benchmarks Outsourcing Services Development Team Review 45

Tom Tunguz

FEBRUARY 20, 2017

This dollar retention metric compares favorably to other public traded software companies like Box and ServiceNow, whose dollar retention is in a similar ballpark. Cash flow from operations breakeven means the business generates as much cash as it consumes setting aside financing and investing activities.

Metrics 100

Metrics Benchmarks Scale Finance 100

Baremetrics

MAY 7, 2019

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. Funding Your Startup. How To Evaluate Funding Options.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

Chaotic Flow

MAY 13, 2014

Becoming a Metrics-driven SaaS Business is no easy task. However, the financial rewards of moving beyond standard SaaS financial metrics to SaaS customer success metrics and ultimately to sophisticated predictive analytics are significant. Each step toward SaaS metrics greatness builds upon the last.

Metrics 135

Metrics SaaS Compensation Benchmarks 135

OPEXEngine

JUNE 29, 2020

Benchmark the health of your SaaS company, and. So which profit metric should you use? It depends, assuming you run your service from AWS or a similar cloud platform, we recommend using EBITDA — since your COGS scales with your revenue, and your gross margin is pretty consistent, this metric should be sufficient.

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

OPEXEngine

MAY 22, 2020

Here’s a shout out to Dave Kellogg’s Key SaaS Metrics podcast, recently released on Aznaur Midov’s SaaShimi series. Dave does a terrific job explaining the current state of the art on important SaaS metrics. The podcast is an excellent SaaS Metrics 101 listen even for experienced SaaS finance experts.

Metrics 52

Metrics SaaS Deferred Revenue Benchmarks 52

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

Tom Tunguz

OCTOBER 12, 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. WorkDay financed this huge investment by coupling long-term, near-million-dollar agreements and nearly $200M in venture capital.

Benchmarks 108

Benchmarks Deferred Revenue Venture Capital Outsourced Development 108

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

Benchmarks 100

Benchmarks Underperforming Technical Team Metrics Sales Hiring 100

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. So they came up with a North Star benchmark, used it as a hurdle rate by channel, and any channels that hit that benchmark would justify a continued investment.

Cloud 223

Cloud Payments Software Review Payment Solutions 223

OPEXEngine

MAY 3, 2022

This SaaS metric is defined as the sum of Deferred Revenue and Backlog. Public companies report this metric in their filings, but the use of the RPO as a key performance indicator is sporadic. The latter obligation, also referred to as Backlog, makes up the non-invoiced amount of the Total Contract Value metric.

Deferred Revenue 59

Deferred Revenue Metrics SaaS Payments Payment Features 59

Tom Tunguz

JULY 29, 2015

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.

Benchmarks 101

Benchmarks Outsourced Development Metrics Scale 101

SaaStr

MARCH 27, 2023

Capchase’s dataset is comprised of roughly half bootstrapped companies and half VC-backed companies, so there will be some differences in benchmarking from what you see from the VC firms. Profitability has eclipsed growth as the primary set of metrics that investors care about. Diversity yields results.

SaaS Payments 189

SaaS Payments Technical Review Software Review Venture Capital 189

OPEXEngine

MARCH 9, 2022

Most companies track R&D as a % of revenue, and maybe a few metrics about activity, but few CFOs can answer the question of what’s the ROI on their R&D investment. How can Finance and Engineering management work together to diagnose weak areas, and shift R&D resources to produce better outcomes for the company?

Software Review 59

Software Review Development Team Review Technical Review Outsourced Development 59

Kellblog

JUNE 17, 2023

Those who find SaaS benchmark reports as impenetrable as James Joyce. the mind of someone who spends far too much time thinking about SaaS metrics), as I read this report. I’ve always felt you should, in a perfect world, be able to cut benchmarks by aspiration. The cavalier. Grab your copy and let’s go.

Scale 104

Scale Sales Benchmarks Metrics 104

Tom Tunguz

OCTOBER 28, 2017

Normally, accounting changes are not that interesting, but ASC 606 will change several of the key attributes and benchmarks SaaS startups use. Metric Q1 Q2. Revenue is now less clear a metric of execution predictability than it was previously. The two most important changes are changes to revenue and profitability. in Q2 ($2.5M

Revenue 206

Revenue Benchmarks SaaS Finance 206

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?” ” These metrics should all get tracked at the individual, team and company level. ” In short: It made SaaS companies even stronger.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

Buffer Resources

JANUARY 25, 2024

There were a variety of workflows and rituals that we chose to make transparent, such as our metrics and finances, internal and external communication, and our efforts toward self-improvement (another of our values). Often, salaries would rise for a whole function when we made changes to our approach or pulled in new market benchmarks.

Systems Review 129

Systems Review Compensation Benchmarks Scale 129

Buffer Resources

JANUARY 25, 2024

There were a variety of workflows and rituals that we chose to make transparent, such as our metrics and finances, internal and external communication, and our efforts toward self-improvement (another of our values). Often, salaries would rise for a whole function when we made changes to our approach or pulled in new market benchmarks.

Systems Review 128

Systems Review Compensation Benchmarks Scale 128

OPEXEngine

AUGUST 23, 2022

Lauren and Rob shared a range of benchmarks that executive management should consider to accurately assess R&D ROI and resource allocations. . R&D Spend as a % of Revenue Benchmarks. Top R&D KPIs Every SaaS Company Should Track & Benchmark. Financial KPIs.

Outsourcing Services 59

Outsourcing Services Technical Review CTO Coach Software Review 59

ChurnZero

MARCH 18, 2022

With so many SaaS metrics floating around, and even more opinions on when and how to use them, it can be hard to know if you’re measuring what really matters. Leading SaaS expert, Dave Kellogg, and ChurnZero CEO, You Mon Tsang, sat down to answer all the questions you want to know about SaaS metrics like ARR, NRR, GRR, LTV, and CAC (i.e.,

Customer Success 98

Customer Success Metrics SaaS Banking 98

SaaSOptics

JUNE 4, 2021

7 SaaS Metrics Every SaaS Company Should Care About in 2021. And with more popularity comes more confusion, especially over what metrics are most important to drive the best results. . In reality, SaaS companies often have more complex finances compared to traditional businesses. SaaS Metrics #1: Annual Recurring Revenue (ARR)

Metrics 53

Metrics SaaS Customer Lifetime Value Payment Features 53

Tom Tunguz

OCTOBER 21, 2017

Venture capitalists have financed many of those businesses. Those venture dollars have financed a panoply of competition. Salesforce for Sales, Workday for HR & Finance, ServiceNow for Operations, Atlassian for Engineering and so on. I’m using SaaS seed rounds as a proxy metric. Salesforce was founded in 1999.

SaaS 180

SaaS Venture Capital Finance Machine Learning 180

User Pilot

OCTOBER 5, 2023

Our guide explores: What exactly CAC payback is Why you should be tracking it How to calculate the CAC payback period for your SaaS What other metrics you need to track How to reduce your CAC payback period We also look at how Userpilot can help you do the job. Let’s get right to it! What is CAC payback? Let’s break them all down.

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

OPEXEngine

FEBRUARY 9, 2021

And with more popularity comes more confusion, especially over what metrics are most important to drive the best results. In reality, SaaS companies often have more complex finances compared to traditional businesses. SaaS Metrics #1: Annual Recurring Revenue (ARR). SaaS Metrics #2: Monthly Recurring Revenue (MRR).

Metrics 52

Metrics SaaS Payment Features Customer Lifetime Value 52

OPEXEngine

APRIL 14, 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. Strategic Goals for Finance Departments.

Investment 52

Investment Sales Hiring SaaS Finance 52

Tom Tunguz

DECEMBER 15, 2013

These are the ten metrics I look at when sifting through a startup’s operational model, whether when considering an investment or in a board meeting. I compare salaries to a set of benchmarks across venture backed companies as a litmus test. Financial statements are a Rosetta Stone for startups.

Startup 130

Startup Metrics Acquisition Churn 130

OPEXEngine

OCTOBER 31, 2019

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. SaaS Finance Benchmarks. Finance skill sets. Skills & Experience.

Finance 40

Finance CTO Hire Headcount SaaS 40

SaaStr

MARCH 17, 2023

They can provide big-picture ROI, but they don’t have hard ROI metrics, benchmarks, and success stories. G2’s finance team took a 12-page contract and made it three pages. Customers want to understand the ROI they’ll get from the vendor, yet many vendors are failing in this area. How can you make purchasing easier?

Marketplace as a Service 187

Marketplace as a Service Software Review Technical Review Azure 187

OPEXEngine

APRIL 16, 2020

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. Most of the companies were US and Canadian-based.

Payments 52

Payments Payment Services Payment Solutions Benchmarks 52