ChurnZero

MARCH 23, 2023

Yet, many teams fall well below industry benchmarks. Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size.

Headcount 52

Headcount Benchmarks Customer Success Scale 52

ChurnZero

MARCH 23, 2023

Yet, many teams fall well below industry benchmarks. Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size.

Headcount 52

Headcount Benchmarks Customer Success Scale 52

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. We will see this show up in revenue figures in a quarter or two. Beating consensus revenue estimates is the first aspect of a successful quarter. net retention and CAC payback).

Cloud 169

Cloud Software Benchmarks Retention 169

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q4 ’22 revenue) / (Q4 ’21 revenue) - 1. net retention and CAC payback). .”

Cloud 161

Cloud Software Benchmarks Retention 161

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

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q1 ’23 revenue) / (Q1 ’22 revenue) - 1. net retention and CAC payback). .”

Cloud 161

Cloud Software Benchmarks Scale 161

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

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 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

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q3 ’22 revenue) / (Q3 ’21 revenue) - 1. net retention and CAC payback).

Cloud 130

Cloud Software Review Software Benchmarks 130

Stax

FEBRUARY 21, 2024

So, of course when it came to revenue-driving activities, Ford knew that success in marketing—and business—wasn’t about how much your marketing spend is, but how efficiently you spend it. 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

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. This signals that the company is strong on both fronts (growth and margin), meaning that it might be an excellent investment opportunity.

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 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.

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

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 102

SaaS Payments Business SaaS Payment Solutions 102

Clouded Judgement

DECEMBER 9, 2022

I went back and looked at the last ~50 software IPOs and benchmarked them across a number of metrics. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Follow along to stay up to date! Top 5 Median: 11.7x

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

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. Six SaaS Metrics’ Significance. By locating one of its metrics (e.g.,

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

User Pilot

OCTOBER 15, 2023

Use benchmarks to monitor your performance to see how well each stage converts. By enhancing the customer experience, CRO ensures a seamless user journey and brings financial benefits such as lowering acquisition costs and enhancing Monthly Recurring Revenue (MRR). The industry benchmark for this metric sits at 8.5%.

SaaS Payments 105

SaaS Payments Payment Methods Payment Solutions Payments 105

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

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

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. Sales and marketing (S&M) expense of 40% of revenues. This is all private SaaS companies, including 22% PE-backed and 13% boostrapped.

Metrics 135

Metrics SaaS Benchmarks Churn 135

OpenView Labs

SEPTEMBER 23, 2019

We’re living in a remarkable era for investing. In this world, where top assets are scarce and capital is plentiful, double digit revenue multiples have become the norm and it isn’t unusual to see some SaaS companies achieve valuations approaching 30x their revenue. 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

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. We see this play out in the math below.

Customer Lifetime Value 75

Customer Lifetime Value Benchmarks Investment Metrics 75

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

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. These processes are important to track accurately and benchmark to achieve the SaaS performance expected in the market. Customer churn or retention rates.

Scale 102

Scale Sales Hiring Metrics Sales 102

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? If the answer is no, then there is potential for revenue-related issues as your company matures. But it can be a balancing act.

Pricing 52

Pricing Subscription Payment Features Strategy 52

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. Userpilot onboarding, analytics , and feedback features can help you reduce CAC and boost revenue. Let’s get right to it! Book the demo to see how! Book the demo to see how! What is CAC payback?

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

User Pilot

MAY 2, 2024

It’s crucial for SaaS businesses because it drives revenue growth, increases customer lifetime value , reduces customer acquisition costs , and fosters positive word-of-mouth marketing. SaaS companies rely on recurring subscription revenue from customers rather than one-time sales. Let’s dive right in!

Retention 111

Retention Metrics Strategy Scale 111

OPEXEngine

MAY 18, 2021

SaaS Metric #1 – Annual Recurring Revenue (ARR). ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. ARR = (Overall subscription per year + recurring revenue from add-ons or upgrades) – revenue lost from cancellations.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

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

OpenView Labs

MAY 24, 2021

In OpenView’s 2020 SaaS benchmarks , we pointed out that public markets were starting to take notice of product-led companies. The companies on OpenView’s PLG index traded at a 50% revenue multiple premium to their SaaS peers, with the valuation gap widening over the course of the year. Atlassian has an R&D:S&M ratio of 2.9:1.

Scale 98

Scale Headcount Sales Hiring Benchmarks 98

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 116

Technical Review Software Review Forecasting Churn 116

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

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 105

Outsourcing Services Software Outsourced Development SaaS 105

Baremetrics

AUGUST 30, 2021

The owner’s equity is used to obtain investment loans or when selling a company as an investment. Connect Baremetrics to your revenue sources and start seeing all of your revenue on a crystal-clear dashboard. Sign up for the Baremetrics free trial and start seeing more into your subscription revenue now.

SaaS 97

SaaS Outsourced Development Payment Services Payments 97