Kellblog

OCTOBER 30, 2022

Unlike Meritech Public Comps , where you can see metrics for the best [1], public SaaS companies, this private company data is somewhat harder to come by (the only other source that springs to mind is RevOps Squared ) and, for most of us, it provides much more realistic comparables than Meritech [2]. See slide 13 of this presentation. [3]

Metrics 135

Metrics SaaS Benchmarks Churn 135

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 104

Metrics Venture Capital Benchmarks Finance 104

Clouded Judgement

APRIL 11, 2024

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., This metric is more self-explanatory, so I won’t go into detail.

Cloud 177

Cloud Software Azure AWS 177

ChurnZero

JUNE 9, 2023

8 metrics to position Customer Success as a profit center with finance While sentiment-based metrics like Net Promoter Score ® (NPS) and customer satisfaction are important, they don’t frame CS work from a financial perspective. To that end, here are the metrics you can use to get started.

Finance 98

Finance Metrics Customer Success Headcount 98

User Pilot

AUGUST 10, 2023

Benchmarking this crucial metric against your industry helps you assess your standing relative to your competition. In this article, we’ll delve into the ins and outs of CAC, its industry-specific benchmarks, and the proven practices to improve it. What is customer acquisition cost (CAC)?

Acquisition 76

Acquisition Benchmarks Customer Lifetime Value B2B 76

SaaStr

FEBRUARY 27, 2024

GTM Composition Can Make or Break Profitability and Growth More specifically, Sapphire has seen that the percentage of investment made against quarter-carrying sellers has dropped in the last 6 years. So back in 2018, on average, what we were seeing was around 30% of Go-to-market investment going to quota-carrying sellers.

VP of Engineering 242

VP of Engineering Scale Marketing Benchmarks 242

Tom Tunguz

NOVEMBER 3, 2021

Before, most investors used forward ARR multiples to value companies, but recently, the 100x multiple seems to be a benchmark for SaaS companies raising rounds. Second, the correlation between the two metrics and revenue growth is identical at about 36%. I wonder if it’s the right metric long term. Is it warranted?

Benchmarks 359

Benchmarks Startup Metrics Revenue 359

OPEXEngine

DECEMBER 13, 2022

In these discussions, lots of conventional wisdom is shared, backed up by “benchmarks” that came from an investor, a conference, or another industry source. That’s because benchmarks need to fit the business model and require context in order to be applied in a relevant way. Companies with an equivalent retention rate.

Benchmarks 52

Benchmarks Scale Headcount Software Review 52

Clouded Judgement

DECEMBER 21, 2023

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., This metric is more self-explanatory, so I won’t go into detail.

Cloud 177

Cloud Software Benchmarks Retention 177

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

Sales Hacker

DECEMBER 20, 2021

As a result, much of the evaluation, investment, and rollout of virtual training technology in 2020 was rushed, limited in scope, and poorly planned. Businesses must take a step back, evaluate their software investments, and rework their implementations. How to maximize customer training investment. Today, not much has changed.

Investment 94

Investment Technical Review Underperforming Technical Team Scale 94

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. The SaaS “Rule of 40” has gained popularity due to its simplicity, requiring only two common financial metrics to be added together. Ultimately, the “Rule of 40” is ONLY a metric.

SaaS 287

SaaS Technical Review Benchmarks Azure 287

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

ChurnZero

NOVEMBER 11, 2022

The top metrics in CS are all revenue metrics. NRR, which tracks the percentage of recurring revenue retained from existing customers, is now the top metric for CS teams in almost every revenue band. This dedicated role shows investment in Customer Success and a greater level of maturity in the function. . of companies.

Leadership 98

Leadership Trends Customer Success Investment 98

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

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS Metric #1 – Annual Recurring Revenue (ARR).

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Tom Tunguz

JANUARY 14, 2015

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. Xero does exhibit an amazing sales efficiency metric of 1.05, meaning $1 invested today in sales and marketing yields $1.05

Benchmarks 100

Benchmarks Metrics SMB Outsourced Development 100

Tom Tunguz

SEPTEMBER 14, 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. Before diving into the benchmarks too deeply, I want to explain how different Veeva’s business is than most.

Benchmarks 119

Benchmarks Metrics SaaS Healthcare 119

Tom Tunguz

SEPTEMBER 29, 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. Compared to the benchmark set, MobileIron has historically burned more cash and operated at greater negative income than the median.

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

Clouded Judgement

SEPTEMBER 12, 2023

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., This metric is more self-explanatory, so I won’t go into detail.

Cloud 169

Cloud Software Benchmarks Retention 169

OpenView Labs

NOVEMBER 18, 2021

Today we released our fifth annual Financial & Operating Benchmarks Survey (formerly known as Expansion SaaS Benchmarks). product-led growth), and benchmarks well against economics that support high Free Cash Flow margins over the long term. But growing fast is easier said than done, especially in the current hiring market.

VP of Engineering 64

VP of Engineering Benchmarks Sales Hiring B2B 64

Tom Tunguz

FEBRUARY 24, 2016

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. That figure has grown each year by 80%, and for the investments that closed in early 2016, that figure reached $163k.

Benchmarks 100

Benchmarks SaaS Pricing Investment 100

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

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 111

Benchmarks Deferred Revenue Venture Capital Outsourced Development 111

Tom Tunguz

OCTOBER 9, 2013

One number investors use to benchmark SaaS startups across sectors and industries is sales efficiency. There are a handful of variants of this metric, sometimes called the magic number, but ultimately they all aim to provide some sense of the incremental revenue returned by sales and marketing investment.

Benchmarks 119

Benchmarks Sales Recruiting Startup Sales 119

OPEXEngine

JUNE 29, 2020

Benchmark the health of your SaaS company, and. Think of it this way: most SaaS companies have high customer acquisition costs, as you have to invest heavily in sales and marketing in order to realize high growth. considered a “healthy” or “attractive” SaaS company to invest in. So which profit metric should you use?

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

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. The incredible consistency of the gross margin might indicate the company actually manages pricing to this metric.

Benchmarks 100

Benchmarks Underperforming Technical Team Metrics Sales Hiring 100

ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. If they stop using it, depending on what the metric is that it’s based on, it’s more volatile. A [Rob]: That’s more of a question for the earlier stage investing in the public market. I will say this much.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

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 268

Cloud Payments Software Review Payment Solutions 268

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

Tom Tunguz

AUGUST 26, 2014

To grow at that pace, HubSpot has been investing aggressively in sales and the company is widely respected for its content marketing prowess. For the moment, HubSpot is among the least profitable companies in the set, but I suspect this is because the company is investing in growth.

Benchmarks 111

Benchmarks SMB Metrics SaaS 111

Baremetrics

NOVEMBER 2, 2021

To get the most out of the time and money invested into their apps, Shopify App Developers need to track the core metrics of their industry. What is a business metric? Why you need to track business metrics for Shopify App Developers 10 business metrics for Shopify App Developers 1. What is a business metric?

Payment Solutions 98

Payment Solutions Outsourced Development Underperforming Technical Team Metrics 98

SaaStr

DECEMBER 21, 2023

In practice, you take the valuation of a business and divide it by some metrics to get a multiple. Most commonly, the metric for software is forward revenue — Next 12 Months (NTM). Other metrics you can use to value companies are free cash flow or net income, but not all have that, so the multiple would be negative.

SaaS 267

SaaS Software Metrics Revenue 267

Tom Tunguz

SEPTEMBER 21, 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. The company went public in 2013 and we’ll use data from their S-1 through 2013 to benchmark the business.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

Tom Tunguz

DECEMBER 10, 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 order to achieve this growth, Box has invested a huge amount of capital. to 0.54, which is about 36% less than the median.

Benchmarks 100

Benchmarks Sales Hiring Metrics SaaS 100

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

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