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

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

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. At the peak of bull market exuberance at the end of 2021, a 1% improvement in revenue growth had the same impact on valuations as a 6% improvement in free cash flow margin.

Cloud 235

Cloud Payments Software Review Payment Solutions 235

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

Tom Tunguz

NOVEMBER 13, 2016

What percentage of revenue should be spent on payroll? in revenue. as both of these companies scaled and approached IPO, the operating expense ratio (OER) or operating expense divided by revenue, asymptotes to 0.8. For every dollar of revenue, both of these companies spent $0.80 In 2001, Salesforce spent $35.6M

Revenue 100

Revenue Startup SaaS Benchmarks 100

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?” Respondents were primarily CEOs (38%) and CFOs (29%) at expansion stage software companies with $1 to $20MM in annual recurring revenue (57%).

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

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

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

OpenView Labs

OCTOBER 7, 2019

You need to have a grip on your monthly burn rate, cash out date, number of months of runway and whether your burn rate is appropriate given your revenue and growth rate. To help out, we crunched the burn rate figures from OpenView’s 2019 Expansion SaaS Benchmarks study. The post 2019 Benchmarks: Are You Burning Too Much Cash?

Benchmarks 41

Benchmarks Sales Hiring Finance Forecasting 41

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. One, when you have really high gross margins, your cost base actually increases much slower than your revenue base. Diversity yields results.

SaaS Payments 196

SaaS Payments Technical Review Software Review Venture Capital 196

OPEXEngine

JULY 31, 2020

We recently fielded a quick survey of SaaS companies to help the SaaS Finance community better understand peer company YTD revenue performance. As of mid-July, the survey results showed that: 90% of early stage SaaS companies under $10M are planning for an increase in revenue for the 2H 2020. FY 2021 Planning.

Benchmarks 87

Benchmarks SaaS Finance Consulting 87

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. How do payments impact software attrition rates?

Payments 147

Payments Embedded Payments Merchant Services Payment Solutions 147

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. One of the eternal questions asked by CFOs is “what’s the optimal R&D spend as a % of revenue?” Financial KPIs.

Outsourcing Services 59

Outsourcing Services Technical Review CTO Coach Software Review 59

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 113

Benchmarks Deferred Revenue Venture Capital Outsourced Development 113

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. In industry parlance, this is called negative revenue churn. But churn doesn’t seem to be a concern for New Relic.

Benchmarks 100

Benchmarks Underperforming Technical Team Metrics Sales Hiring 100

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

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. Gross Revenue Retention Rate.

Retention 52

Retention Churn Revenue Metrics 52

SaaSHolic

JULY 31, 2023

TLDR: Probably when your company hits $5M+ in Annual Recurring Revenue (ARR). Let’s dive into it: Pre-Revenue → You In the earliest days, successful founders need to be extremely efficient: drive as much productivity as possible with the few resources they have until they “hit something.” It is a lose-lose scenario.

Sales Hiring 52

Sales Hiring Payment Services Underperforming Technical Team Outsourced Development 52

ChurnZero

JANUARY 11, 2024

In other words, we asked more complicated and probing questions in each subsequent year to reveal better benchmarks. 2023 non-headcount customer success budgets as a percentage of revenue: Most non-headcount customer success budgets range from 0.08% of revenue to 0.2% of revenue. of revenue. of revenue.

Headcount 52

Headcount SaaS Leadership Benchmarks 52

SaaSOptics

FEBRUARY 13, 2022

When transitioning to a SaaS model or developing a SaaS business, many companies utilize spreadsheets, disconnected systems, and other manual processes to manage their recurring revenue business. This means that revenue is recognized at the time of the transaction. This means that revenue is recognized at the time of the transaction.

Payment Features 105

Payment Features Outsourced Development SaaS Software Review 105

Tom Tunguz

JULY 29, 2015

Netsuite began developing ERP (enterprise resource planning) tools to help companies manage their finances, expenses and supply chain. In the last ten years, Netsuite has grown revenue from $18M to $556M. Netsuite keeps about 14% of revenues as cash. Net income as a percentage of revenue is steady at around -15%.

Benchmarks 113

Benchmarks Outsourced Development Metrics Scale 113

OpenView Labs

DECEMBER 14, 2021

OpenView’s 2021 Finance and Operating Benchmarks Report highlights a framework that can unwind this death by a thousand cuts analysis to start with a simple question: Should we allocate resources to R&D (product) or to sales & marketing (sales)? OpEx Spend Benchmarks: Product or Sales?

Scale 80

Scale Sales Benchmarks Finance 80

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

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

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 104

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 104

SaaStr

JANUARY 24, 2020

Where SaaS Stands Today: Benchmarks and Lessons from 16,426 SaaS companies. — Build your SaaS on Customer Cash – a discussion on how to bootstrap, and if or when to use Revenue Financing. . — Masterclass: Churn is dead. Long live Net Dollar Retention Rate with Dave Kellogg. Mar 10, 9:30am – 10:00am.

Scale 191

Scale Leadership Churn Benchmarks 191

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

OPEXEngine

APRIL 13, 2023

At OPEXEngine, we continue to bang the drum on the importance for business and finance leaders to measure and benchmark the return on R&D spend. Then compare it to your peers to see if you are getting the return that you want or expect from your R&D investment.

Benchmarks 40

Benchmarks Finance Innovation Revenue 40

Chart Mogul

NOVEMBER 3, 2023

Revenue from new business boomed, companies had money to burn, and the name of the game was growth at all costs—full speed ahead. Revenue from new business boomed, companies had money to burn, and the name of the game was growth at all costs—full speed ahead. Everything is based on revenue.

AI Search 52

AI Search Benchmarks Venture Capital AI 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.

Acquisition 59

Acquisition B2B Benchmarks SaaS 59

Unbounce

AUGUST 4, 2021

The Conversion Benchmark Report found that in software as a service (SaaS) and law—two technical industries— lower word counts and lower Flesch Reading Ease Scores (FRES) resulted in more conversions. The home-loan process involves lots of terms that’ll go over your head if you don’t work in finance. Avoid using jargon when you can.

B2C 144

B2C AI B2B Benchmarks 144

OPEXEngine

JANUARY 25, 2022

Average revenue to market cap multiples for Bessemer Cloud Index as of last quarter was 24x (for companies with revenues between $100M-$300M). With capital available to businesses, finance teams will begin to prepare for IPOs, and we will see a wave of public companies emerging as we recover from the economic downturn.

Venture Capital 52

Venture Capital Cybersecurity Forecasting Finance 52

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

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. Is the amount of revenue increasing?

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

OPEXEngine

FEBRUARY 13, 2020

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. Chief Customer Officer or Chief Revenue Officer (CRO).

Part-Time CTO 69

Part-Time CTO CTO CTO Hire Management 69

Chaotic Flow

MAY 13, 2014

The stages of development can be classified into a natural progression of increasing SaaS business understanding from financial stability to operational measurability to revenue predictability outlined at the very beginning of this series. Sales is compensated on recurring revenue and avoids discounts based on total contract value.

Metrics 135

Metrics SaaS Compensation Benchmarks 135

Sales Hacker

APRIL 19, 2022

All of these changes have forced revenue leaders to reshape their variable pay strategies, and it begins with the compensation structure itself. However, comp planning responsibility jumped to RevOps’ or finance’s plate when a company generated more than $30 million in ARR. But your multiplier is revenue-dependent.

Compensation 86

Compensation Sales Recruiting Sales Hiring Retention 86