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

OPEXEngine

OCTOBER 10, 2019

The Subscription Show is coming to Boston in a few weeks at the World Trade Center. I’m thrilled to be speaking there about SaaS Metrics and Benchmarks. The show is 100% focused on subscription models, operations, pricing, marketing and subscription-centric technologies, and organized by Subscription Insider.

Payment Features 40

Payment Features Subscription Payment Services Benchmarks 40

OpenView Labs

NOVEMBER 16, 2021

Annual Recurring Revenue (ARR). The value of your contracted subscriptions taking into account revenue added/lost from components such as new sales, renewals, upsells, churn, etc. ACV Ratio = Expense of marketing campaigns : Revenue from marketing campaigns. Committed Monthly Recurring Revenue (CMRR).

Benchmarks 71

Benchmarks Scale Metrics Sales Recruiting 71

SaaSOptics

FEBRUARY 13, 2022

Based on a 2019 survey, Gartner forecasts that eighty-four percent of new software will be delivered as SaaS , and this percentage is expected to increase as existing providers transition to a subscription-based model. The main difference between accounting for a subscription vs. a traditional business is the method used. The result?

Payment Features 105

Payment Features Outsourced Development SaaS Software Review 105

Chart Mogul

JUNE 24, 2021

For subscription apps like Headspace , a global audience is part of their growth ambition. Stephen shared that, “the hope [with localized pricing] would be that this ultimately makes it possible for MORE creators to make revenue on Twitch and more fans supporting their fav creators.”. 2 types of pricing localization.

Pricing 128

Pricing SaaS Payments Payments Payment Features 128

Payrix

APRIL 24, 2024

Andy suggests that there is an immediate and discernible value-add for software companies to embed payments as a means for retention of SaaS revenue. Plus, software providers gain the addition of payments revenue and the ongoing retention of that additional revenue too. And then you expand upon that.

Payments 162

Payments Embedded Payments Merchant Services Payment Solutions 162

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.

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

Baremetrics

OCTOBER 9, 2021

While Stripe is indispensable for the average online business, providing many different tools, reports, and customizations that power online payment processing , when it comes to finding the billing history for Stripe customers, things are needlessly complicated. Stripe is a fully integrated suite of payment products. What is Stripe?

Payment Services 98

Payment Services SaaS Payments Payment Methods Payments 98

ProfitWell

NOVEMBER 13, 2019

The good news is that the most important subscription KPIs are constant across SaaS businesses, whether you’re selling a timekeeping software or an accounting tool. Read on to find out what the top six subscription KPIs are, why you should be tracking them, and how. Why subscription companies need to track KPIs. Forecast Demand.

Subscription 80

Subscription Payment Features Customer Lifetime Value Benchmarks 80

Baremetrics

SEPTEMBER 15, 2021

For example, you need to calculate the growth rates for monthly recurring revenue (MRR), active customers, average revenue per user (ARPU), and more. The growth of active users Changes in Monthly recurring revenue (MRR) Churn Rate Expansion MRR See all of your financial data with Baremetrics.

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

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. Today, we’ll explore one of the enterprise behemoths, both in market cap and average revenue per customer: WorkDay.

Benchmarks 111

Benchmarks Deferred Revenue Venture Capital Outsourced Development 111

Navint

APRIL 18, 2019

This is an excerpt of the article Key SaaS Lessons to Maximize Revenue from VentureBeat that featured an interview from Sean Joyce. From a testing standpoint, the best advice I would give anybody looking at recurring revenue is to make sure you approach the project holistically,” says Joyce. To view the full article, click here.

Revenue 64

Revenue SaaS Finance Interviewing 64

Kellblog

JUNE 17, 2023

Those who find SaaS benchmark reports as impenetrable as James Joyce. While some SaaS benchmarks include a broad mix of VC-backed, founder bootstrapped, and PE-owned SaaS companies, SaaS benchmarks produced by VC firms generally include only those firms who tried to raise VC — i.e., the moonshots or at least wannabe moonshots.

Scale 102

Scale Sales Benchmarks Metrics 102

OPEXEngine

MAY 3, 2022

This SaaS metric is defined as the sum of Deferred Revenue and Backlog. Deferred Revenue for SaaS companies is the contractual obligation to deliver the SaaS product for the period invoiced. More specifically, RPO is the sum of the invoiced amount and the future amounts not yet invoiced for a contract with a customer.

Deferred Revenue 59

Deferred Revenue Metrics SaaS Payments Payment Features 59

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

Tom Tunguz

FEBRUARY 20, 2017

Today, the business generates nearly $200 million annually in revenue, and is growing at 70%. The chart above shows the subscription revenue is roughly at $150 million and professional services revenue is about $35 million this year. Growing quickly at the scale is no mean thing. Mulesoft is an incredible company.

Metrics 100

Metrics Benchmarks Scale Finance 100

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. New Relic charges by the server - the more computers monitored, the greater the subscription fee.

Benchmarks 100

Benchmarks Underperforming Technical Team Metrics Sales Hiring 100

InsightSquared

MAY 7, 2019

When scaling the business, sales typically averages roughly 30% of revenue, so therefore sales spend is one of the biggest investments a company can make. 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.

Scale 102

Scale Sales Hiring Metrics Sales 102

Chart Mogul

JUNE 24, 2021

For subscription apps like Headspace , a global audience is part of their growth ambition. Stephen shared that, “the hope [with localized pricing] would be that this ultimately makes it possible for MORE creators to make revenue on Twitch and more fans supporting their fav creators.”. 2 types of pricing localization.

Pricing 52

Pricing SaaS Payments Payments Payment Features 52

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

AUGUST 11, 2021

Revenue recognition, as per GAAP, states that payment is recognized as revenue after delivering the product or service in its entirety. Of course, that’s not how SaaS revenue works. (We We wrote more about revenue recognition here!) Revenues 3. GAAP is important to SaaS Businesses. Table of Contents.

Payment Methods 59

Payment Methods SaaS Payments Payment Features Payment Services 59

User Pilot

OCTOBER 5, 2023

Stakeholders across the organization, including marketing , sales, product managers , customer success teams, finance, and senior leaders , monitor the CAC payback metric to optimize strategies and inform decision-making. Userpilot onboarding, analytics , and feedback features can help you reduce CAC and boost revenue.

SaaS Payments 93

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 93

Kellblog

NOVEMBER 23, 2022

Finance types on the board might view these as simple canapes served before the meal. In a small initial land and big expand model, this may run much higher than 30-40% but that also depends on the definition of land – i.e., is the “land” just the first order or the total value of subscriptions acquired in the first 6 or 12 months).

Technical Review 116

Technical Review Software Review Forecasting Churn 116

Chart Mogul

SEPTEMBER 15, 2023

Benchmarks across the PLG user journey The hardest part of PLG might actually be… marketing?! How To Trick Investors & VCs by Only CFO The purpose of this post is not to educate you on how to commit/detect fraud, but to help you understand some of the accounting/finance nuances that might deceive investors. Forget about Threads.

Scale 52

Scale Underperforming Technical Team Sales Hiring SaaS 52

OpenView Labs

SEPTEMBER 8, 2021

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. . Here’s what that means for Product, Marketing, Sales, Customer Success, Pricing, and Finance.

Pricing 64

Pricing Customer Success Scale Compensation 64

OPEXEngine

FEBRUARY 1, 2022

It is not just a finance focus, but your job is to facilitate the view through every aspect of your business. When structured correctly, finance can improve overall operational efficiency by helping all the operators be more thoughtful about their business. You also need to challenge other functions to have a multi-year perspective.

SaaS Payments 52

SaaS Payments Payment Services Payment Solutions SaaS 52

Baremetrics

AUGUST 30, 2021

Connect Baremetrics to your revenue sources and start seeing all of your revenue on a crystal-clear dashboard. You can even see your customer segmentation , deeper insights about who your customers are , forecast into the future, and use automated tools to recover failed payments. Annual revenue iii. Conclusion.

SaaS 97

SaaS Outsourced Development Payment Services Payments 97

Baremetrics

MAY 4, 2021

Financial forecasting models are used to predict financial outcomes within a specified area of your business, like recurring revenue or payroll. Adopting this approach provides you with invaluable insights into your subscription-based business, helping you calculate costs, improve budgeting, and allocate resources. The result?

Forecasting 98

Forecasting Benchmarks Finance Subscription 98

OPEXEngine

MARCH 15, 2022

High Growth SaaS Companies Get A Significant Portion of Revenues Internationally. OPEXEngine benchmarking data reveals an interesting trend. By contrast, slow-growth companies reported 20% revenue from international business in 2020. Your HR and finance teams will thank you.”. Why Go Global? Talent Compensation.

Payment Services 40

Payment Services SaaS Payments Merchant Services Payments 40

SaaSOptics

JUNE 4, 2021

In reality, SaaS companies often have more complex finances compared to traditional businesses. SaaS Metrics #1: Annual Recurring Revenue (ARR) . ARR is a representation of the Recurring Revenue a subscriber has with you over a 12 month period. Learn more about annual recurring revenue here.

Metrics 53

Metrics SaaS Customer Lifetime Value Payment Features 53

OPEXEngine

FEBRUARY 9, 2021

In reality, SaaS companies often have more complex finances compared to traditional businesses. SaaS Metrics #1: Annual Recurring Revenue (ARR). ARR is a representation of the Recurring Revenue a subscriber has with you over a 12 month period. SaaS Metrics #2: Monthly Recurring Revenue (MRR).

Metrics 52

Metrics SaaS Payment Features Customer Lifetime Value 52

Baremetrics

APRIL 6, 2021

It needs to be dependent on your product's value, your customer's perceived value of your product, as well as your finances. Get quick, actionable insights into your revenue with your free trial from Baremetrics. If you go too low, you risk jeopardizing your annual revenue and not getting the sales you need. Table of Contents.

Pricing 59

Pricing SaaS Finance Social Media 59

Baremetrics

SEPTEMBER 22, 2021

The ASC 606 outlines a five-step model for revenue recognition. Recognize revenue when or as the entity satisfies a performance obligation. As a subscription-based SaaS enterprise, you need to be aware of these rules and follow them. What is revenue recognition? What to look for in a revenue recognition cloud application?

Payments 84

Payments Payment Methods SaaS Payments Payment Solutions 84

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.

Outsourcing Services 53

Outsourcing Services Trends Outsourced Development Technical Review 53

Baremetrics

AUGUST 5, 2021

Business owners are constantly thinking about company finances. While you’re here, you should try Baremetrics to view your subscription data and financial metrics in real-time, all in one place. Tracking total expenses Fixed, Recurring, Non-Recurring and Extraordinary Expenses – What Are They? Start a free trial today.

Payment Methods 85

Payment Methods Management Payment Solutions Payments 85

Tom Tunguz

JULY 6, 2014

Because GoPro is the first sizable consumer hardware IPO in eons and because the startup world has a blossoming hardware segment, I thought it would be interesting to compare and contrast a top consumer hardware startup with the benchmarks of public SaaS companies using GoPro’s S-1. I have three goals with this analysis.

Startup 129

Startup Sales Hiring Benchmarks Advertising 129

OPEXEngine

MAY 22, 2020

The podcast is an excellent SaaS Metrics 101 listen even for experienced SaaS finance experts. And I’d point out that you need to benchmark both the performance metrics and the underlying individual metrics to diagnose exactly where to focus on improvement. ACV can be ARR plus services revenue, ie., ACV : Annual Contract Value.

Metrics 52

Metrics SaaS Deferred Revenue Benchmarks 52