Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Ensures You Attract the Right Customers When Should You Increase Your Pricing?

Pricing 111

Pricing SaaS Scale Churn 111

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

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

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

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

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

Clouded Judgement

APRIL 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 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

JUNE 20, 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., The market is clearly pricing in lower rates + reacceleration of growth.

Cloud 161

Cloud Software Benchmarks Scale 161

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 20, 2017

Mulesoft prices is a function of the amount of computation power charged by customers and this doubling of average contract size suggests the sales team is able to convince customers to buy more of the software at the outset. First, the number of customers grew from 592 to 839 to 1071 over the last three years.

Metrics 100

Metrics Benchmarks Scale Finance 100

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

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. Now we’re seeing numerous companies price 8 to 12, so it’s definitely jumped up a little bit.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

User Pilot

OCTOBER 15, 2023

Conversion rate is one of the most important metrics to track in SaaS, and that’s why conversion rate optimization is an essential focus for growth in any business. Let’s look at the most essential metrics and tactics you can utilize to improve them. Four SaaS conversion rates are significant to focus on.

SaaS Payments 103

SaaS Payments Payment Methods Payment Solutions Payments 103

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

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 236

Cloud Payments Software Review Payment Solutions 236

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

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

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?” It now matches sales and marketing spend at the average SaaS company as folks continued to put significant investments into R&D during the pandemic.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

Clouded Judgement

DECEMBER 20, 2022

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 130

Cloud Software Review Software Benchmarks 130

Tom Tunguz

AUGUST 26, 2014

HubSpot’s target customer base are SMBs and with this price point, it’s possible to support a profitable inside sales model if the team is very efficient. To grow at that pace, HubSpot has been investing aggressively in sales and the company is widely respected for its content marketing prowess.

Benchmarks 113

Benchmarks SMB Metrics SaaS 113

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

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. They either raise prices or they don’t give discounts. They invest in the right tools, and in the right team, to understand the impact.

SaaS Payments 197

SaaS Payments Technical Review Software Review Venture Capital 197

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 104

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 104

OpenView Labs

SEPTEMBER 8, 2021

2021 has proven to be the year of usage-based pricing. . 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. . Product: Treat product investments as a revenue-generating expense.

Pricing 64

Pricing Customer Success Scale Compensation 64

Stax

FEBRUARY 21, 2024

TL;DR The SaaS Magic Number is a metric, somewhat similar to ROI, but designed to assess the efficiency and effectiveness of a company’s sales and marketing strategies. The SaaS Magic Number is a metric, related to ROI, but better designed to assess the efficiency and effectiveness of a company’s sales and marketing strategies.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

Tom Tunguz

SEPTEMBER 10, 2013

Benchmarking is a great tool, if you can get access to representative data. Pacific Crest and David Skok have released a fantastic survey benchmarking SaaS metrics for early and growth stage companies. Below is my list of the six most important benchmarks and observations from that report.

Benchmarks 113

Benchmarks Startup Sales Hiring Compensation 113

SaaStr

JULY 27, 2023

Investors currently struggle with price finding for these rounds. There’s no new normal or price set yet, and that uncertainty creates a little bit of fear among investors to overpay. “Am And finding that right clearing price is still a work in progress. Now, it’s closer to $2M, with many good funds investing between $2.5M

AI 177

AI Trends Banking Pricing 177

Tom Tunguz

JUNE 8, 2015

ServiceNow commands 30%+ annual price increases from its customers, an impressive figure. Impressively, the company is investing more and more into engineering - exceeding 20% of revenues last year - likely developing broader feature set to enable additional up and cross sells. ServiceNow has recorded a better than 1.0

Benchmarks 113

Benchmarks Metrics SaaS Investment 113

ProfitWell

JANUARY 13, 2020

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? Finding an effective price helps you solidify your position, build trust with your customers, and achieve your business goals.

Pricing 52

Pricing Subscription Payment Features Strategy 52

OpenView Labs

FEBRUARY 4, 2020

Segment CEO and Co-founder Peter Reinhardt was recently reflecting on what were his top lessons learned from changing packages and pricing. While Segment may be an extreme case, the business is far from unique in learning that it was leaving money on the table due to its pricing. Pricing Is Your Best Shot at Growing 25% Faster.

Pricing 60

Pricing Scale Technical Review Software Review 60

Clouded Judgement

DECEMBER 9, 2022

I went back and looked at the last ~50 software IPOs and benchmarked them across a number of metrics. I then fixed the set of companies in the each of the the 3 buckets (top decile, top quartile, bottom quartile), and looked at how they preformed in a series of other metrics. Follow along to stay up to date!

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

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 229

Revenue Benchmarks SaaS Finance 229

OpenView Labs

SEPTEMBER 23, 2019

We’re living in a remarkable era for investing. However, when we look “under the hood” (the metrics supporting growth) of public SaaS companies (see the right-hand chart below), we find that just 7 (one in ten) public SaaS companies will generate substantial negative profit margins this year. How Do I Know What My Benchmarks Are?

Benchmarks 40

Benchmarks Data SaaS Scale 40

Baremetrics

SEPTEMBER 9, 2021

When discussing the financial metrics for a SaaS company, revenue vs. profit is among the most common comparisons encountered. When a SaaS product or service has been developed, tracking the ROI (return on investment) involves always keeping revenue vs. profit at the top of mind. It’s important to keep these two metrics separate.

Payments 103

Payments Revenue Payment Services SaaS Payments 103

User Pilot

MARCH 26, 2024

Pricing Here's an overview of Userpilot's pricing plans: Starter. Uses quote-based pricing and includes enterprise features such as custom roles, permission management, premium integrations, priority support, activity logs, security audits, SOC 2/GDPR compliance, and more. Pricing Amplitude offers three paid plans.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

User Pilot

MARCH 26, 2024

Pricing Here's an overview of Userpilot's pricing plans: Starter. Uses quote-based pricing and includes enterprise features such as custom roles, permission management, premium integrations, priority support, activity logs, security audits, SOC 2/GDPR compliance, and more. Pricing Amplitude offers three paid plans.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

User Pilot

MARCH 26, 2024

Pricing Here's an overview of Userpilot's pricing plans: Starter. Uses quote-based pricing and includes enterprise features such as custom roles, permission management, premium integrations, priority support, activity logs, security audits, SOC 2/GDPR compliance, and more. Pricing Amplitude offers three paid plans.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52