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

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 169

Cloud Software Benchmarks Retention 169

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 120

Benchmarks Sales Recruiting Startup Sales 120

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. The product is hosted by the vendor or a 3 rd party (like AWS).

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

Baremetrics

JULY 30, 2021

Chargebee is a company that offers a wide range of features and toutes itself as the leader in subscription billing management. Within their platform, users can manage various aspects of their online customers such as subscription, recurring billing, invoicing, payments, accounting, taxes, and more.

Systems Review 52

Systems Review Technical Review Payment Features Payments 52

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. How does the Rule of 40 work?

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Retention 161

BetterCloud

APRIL 2, 2024

Shelfware occurs when organizations invest in SaaS solutions, but fail to fully utilize or all together abandon the software altogether. shelfware not only wastes money, but also prevents organizations from maximizing the benefits of their software investments. What is shelfware?

Technical Review 52

Technical Review Software Review SaaS Benchmarks 52

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Scale 161

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. . These top investment priorities reflect what OPEXEngine is hearing from CFOs in conversations and in our current benchmarking, as well as in this survey.

Investment 52

Investment Sales Hiring SaaS Finance 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. In 2009 and 2010, the company recognized more revenue from services than subscription.

Benchmarks 111

Benchmarks Deferred Revenue Venture Capital Outsourced Development 111

Chargebee

DECEMBER 7, 2023

Based on a benchmark report from PwC, Finance Teams continue to spend about 30-40% of their bandwidth on data collection, quality checks, and reporting. While our customers deeply appreciate the efforts and time their finance teams invest in ensuring everything runs smoothly, we’re always looking for ways to lighten their load.

Finance 75

Finance Benchmarks Subscription Payment Features 75

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 130

Cloud Software Review Software Benchmarks 130

Baremetrics

SEPTEMBER 15, 2021

If you’re considering whether or not to invest money in a certain area of business, you might want to look at how that area of business is growing. With an understanding of a company's growth rate, investors can often predict future performance and make better investment decisions. What growth rates can you measure with Baremetrics?

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

OpenView Labs

OCTOBER 30, 2019

As you may have guessed from Firas’ background, we’re huge fans of OpenView, which recently published the 2019 Expansion SaaS Benchmarks Report and accompanying Expansion SaaS Benchmarks Data Explorer. Companyon’s SaaS Benchmarks Modeling Tool. How to Use The SaaS Benchmarks Modeling Tool. Tab 1 – Data Input.

Benchmarks 40

Benchmarks SaaS Metrics Retention 40

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. Tableau sells software the old-fashioned way, with perpetual licenses not subscriptions.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

Chargebee

DECEMBER 8, 2023

Based on a benchmark report from PwC, Finance teams continue to spend about 30-40% of their bandwidth on data collection, quality checks, and reporting. While our customers deeply appreciate the efforts and time their Finance teams invest in ensuring everything runs smoothly, we’re always looking for ways to lighten their load.

Finance 59

Finance Benchmarks Subscription Payment Features 59

Stax

FEBRUARY 21, 2024

And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever. Enter the SaaS Magic Number, which measures the return on sales and marketing spend in generating new subscription revenue.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

User Pilot

APRIL 29, 2024

A good SaaS renewal strategy helps drive customer retention , increases the customer lifetime value , and improves your monthly recurring revenue. The renewal rate is calculated as the number of customers who renew their subscription divided by the total number of customers up for renewal at any given period.

SaaS Payments 79

SaaS Payments Business SaaS Payment Solutions 79

Kellblog

MARCH 29, 2023

Phrasing these strategies in terms of songs/albums: (1) Staying Alive , (2) Get Back [to where you once were valued], and (3) Born to Run [convince VCs that, “tramps like us, baby, we were born to run” — i.e., that we have a lean machine where ARR is a predictable output of VC investment.]

Metrics 123

Metrics Compensation Benchmarks Interviewing 123

Neil Patel

NOVEMBER 4, 2020

As an entrepreneur, Apple Watches can be an excellent investment, as there is a wide variety of Apple Watch apps designed with business in mind. That app is no longer available for the Apple Watch—but you aren’t left out in the cold, thanks to Invoice & Time Tracking from Zoho. Goal Tracking Apple Watch Apps. Productive.

Payment Solutions 145

Payment Solutions Payment Methods Social Media Business 145

OpenView Labs

SEPTEMBER 23, 2019

We’re living in a remarkable era for investing. Benchmarks are the only check on whether or not a business is generating efficient growth. Benchmarks act as a swim lane for operating a business and allow operators to build a hyper-growth business that provide permission to believe. How Do I Know What My Benchmarks Are?

Benchmarks 40

Benchmarks Data SaaS Scale 40

Clouded Judgement

AUGUST 25, 2023

The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions. There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses.

Benchmarks 246

Benchmarks Artificial Intelligence Data Software Review 246

Clouded Judgement

DECEMBER 9, 2022

I went back and looked at the last ~50 software IPOs and benchmarked them across a number of metrics. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Every week I’ll provide updates on the latest trends in cloud software companies.

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

Kellblog

OCTOBER 30, 2022

One of my new benchmarking themes is that people need to pay more attention to matching their benchmarks with their aspirations. Margin profile of 77% subscription, 73% blended. 2] As I said in a recent speech, it’s the difference between benchmark off all SAT test takers and Ivy League applicants.

Metrics 135

Metrics SaaS Benchmarks Churn 135

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

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. But benchmarks alone are not enough. We’ve got to make the leap from benchmarks to action. Here’s our advice on how to use the benchmark data to grow even faster in 2020. But sales looks more like customer success in a PLG business.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

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? Especially if you’re trying to get ahead in today’s highly competitive SaaS and subscription markets. Growth potential.

Pricing 52

Pricing Subscription Payment Features Strategy 52

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

FastSpring

SEPTEMBER 16, 2022

Valid question, and I’m going to answer it — because the reasons (plural) we have for investing in this initiative may not be as simple as the most cynical among us assume. Companies don’t just invest in new programs to benefit random business people on the internet; they do it because it serves their own business in some way.

SaaS Payments 133

SaaS Payments Payment Solutions Merchant Services Software Review 133

Clouded Judgement

APRIL 4, 2024

The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions. There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. Enterprise Edition.

Benchmarks 117

Benchmarks Data Cybersecurity Cloud 117

Andreessen Horowitz

AUGUST 22, 2023

Investors often use 3x LTV:CAC as a rough benchmark of a consumer company’s financial health. first-party e-commerce, third-party e-commerce, social networks, subscription-based content, etc.), Like we said earlier, higher margins means you can invest more dollars back into your business.

Customer Lifetime Value 75

Customer Lifetime Value Benchmarks Investment Metrics 75

Tom Tunguz

FEBRUARY 20, 2017

The chart above shows the subscription revenue is roughly at $150 million and professional services revenue is about $35 million this year. Cash flow from operations breakeven means the business generates as much cash as it consumes setting aside financing and investing activities. Growing quickly at the scale is no mean thing.

Metrics 100

Metrics Benchmarks Scale Finance 100

User Pilot

OCTOBER 15, 2023

Use benchmarks to monitor your performance to see how well each stage converts. The PQL to paying user conversion rate represents the strategies’ effectiveness in showcasing value and persuading users of its worthiness for their investment. The industry benchmark for this metric sits at 8.5%. Imagesource: Firstpagesage.

SaaS Payments 94

SaaS Payments Payment Methods Payment Solutions Payments 94

User Pilot

OCTOBER 26, 2023

We also share benchmarks, important metrics to track, and best practices. TL;DR Software ROI, or Return on Investment , represents the financial and business benefits of implementing a software application while factoring in the cost of the investment. Let’s get right to it. What is the ROI of software?

Outsourcing Services 101

Outsourcing Services Software Outsourced Development SaaS 101

Baremetrics

SEPTEMBER 9, 2021

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. The reason is simple: revenue does not represent your company’s “true” return on investment. However, these two financial terms are sometimes misrepresented in the books.

Payments 103

Payments Revenue Payment Services SaaS Payments 103

Kellblog

NOVEMBER 23, 2022

burn) by failing to invest in the second half of 2023 for growth in 2024. The first block is revenue, optionally split by subscription vs. services. It’s important to see both subscription and overall (aka, blended) gross margin for benchmarking purposes. 2024 and 2025). months vs. quarters) or detail (e.g.,

Technical Review 117

Technical Review Software Review Forecasting Churn 117