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. In addition, it affects cash flow.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

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

SEPTEMBER 15, 2021

In SaaS, you need to calculate the growth rate for a handful of different metrics. For example, you need to calculate the growth rates for monthly recurring revenue (MRR), active customers, average revenue per user (ARPU), and more. One easy way to do this is to use Baremetrics to calculate the growth rates for your SaaS metrics.

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

Kellblog

OCTOBER 30, 2022

KeyBanc Capital Markets (KBCM) recently published their 13th annual private SaaS company survey. The first thing to remember about this survey is that it’s private SaaS companies. Net: this is not VC-backed SaaS companies (62% are), this is not IPO-track SaaS companies (presumably some small subset of that 62%).

Metrics 135

Metrics SaaS Benchmarks Churn 135

OPEXEngine

JUNE 29, 2020

Here’s a common dilemma that all SaaS business owners face — should you pursue growth at all costs, or is it more important to make sure that your margins are healthy, and that you’re not losing money with each new customer that you bring on board? Benchmark the health of your SaaS company, and. Enter the Rule of 40!

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

FastSpring

SEPTEMBER 16, 2022

In our first post about our online community , we mentioned launching the Global SaaS Leaders Slack group because we saw a need for the kind of software-and-SaaS-focused community we’d want to be a part of. Our Guiding Principle: Our Software and SaaS Community Must Be Good for You in Order for It to Succeed.

SaaS Payments 146

SaaS Payments Payment Solutions Merchant Services Software Review 146

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

Payrix

MAY 14, 2024

Before joining Worldpay for Platforms, he was CRO at Chargebee, a subscription revenue management platform that manages billing subscriptions and payments for companies throughout the world. So, I think those are key, I think that investment will pay off, because now there’s such a big focus on that.

Payments 130

Payments Payment Services Payment Solutions SaaS Payments 130

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., net retention and CAC payback).

Cloud 169

Cloud Software Benchmarks Retention 169

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. TL;DR A SaaS conversion rate refers to the percentage of visitors who take a desired action on the website or in-app. What is the SaaS conversion rate?

SaaS Payments 105

SaaS Payments Payment Methods Payment Solutions Payments 105

OPEXEngine

APRIL 14, 2021

This is the second analysis in a three-part series that highlights different business observations uncovered when we conducted our Q1 2021 SaaS CFO Pulse Survey in March. . 2021 is expected to be a year in the SaaS market where competition for customers, product category leadership, and employees is hot. Finance Department Investments.

Investment 52

Investment Sales Hiring SaaS Finance 52

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

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

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. Six SaaS Metrics’ Significance. Companyon’s SaaS Benchmarks Modeling Tool.

Benchmarks 40

Benchmarks SaaS Metrics Retention 40

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., net retention and CAC payback). Subscribe now When Will Macro Improve?

Cloud 161

Cloud Software Benchmarks Retention 161

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. All of the businesses we’ve looked at in the past have been purely SaaS businesses.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

User Pilot

MAY 20, 2024

Are you trying to develop a customer advocacy strategy for your SaaS but not sure how to go about it? Customer advocates are a valuable asset for a SaaS business. To guide your efforts and provide benchmarks against which you can measure progress. If so, this article is exactly what you need! Let’s get into it, shall we?

Scale 59

Scale Strategy Social Media SaaS 59

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

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., FCF Margin FCF is an important metric to evaluate in SaaS businesses.

Cloud 161

Cloud Software Benchmarks Scale 161

InsightSquared

MAY 7, 2019

Sales is the engine driving SaaS company value. And sales expense is typically the largest expense item on a growth SaaS company’s income statement. 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.

Scale 102

Scale Sales Hiring Metrics Sales 102

OPEXEngine

MAY 18, 2021

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 metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

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., FCF Margin FCF is an important metric to evaluate in SaaS businesses.

Cloud 130

Cloud Software Review Software Benchmarks 130

OpenView Labs

SEPTEMBER 23, 2019

We’re living in a remarkable era for investing. Particularly within the SaaS world, where the allure of high returns in the private markets has resulted in all-time funding records due to the rise of the megaround , Softbank’s Vision Fund , and more. How Do I Know What My Benchmarks Are?

Benchmarks 40

Benchmarks Data SaaS Scale 40

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

Chart Mogul

JUNE 16, 2023

Our ideal customer profiles (ICPs) are SaaS companies. Our ideal customer profiles (ICPs) are SaaS companies. A sponsorship is a huge time and financial investment. We consider carefully which events we could and should invest in. Return on Investment is the most common way to asses event success. That’s 200k!

Strategy 52

Strategy SaaS Benchmarks Travel 52

User Pilot

JANUARY 27, 2023

As a SaaS product manager , how do you give users a chance to experience your product value? So why not look at our 15 B2B SaaS free trial best practices that will help you boost your conversion rates? If the customers see the value, they are happy to pay for their subscriptions. Do you prefer free plans or just free trials?

SaaS Payments 98

SaaS Payments B2B SaaS Payment Solutions 98

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. More than 500 SaaS companies participated in this year’s survey, which covered topics like financial performance, product led growth adoption, founder priorities and much more. But benchmarks alone are not enough.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

Kellblog

MARCH 29, 2023

Just a quick post to share the slides from the presentation I gave today at the KiwiSaaS conference to discuss the SaaS metrics that matter in 2023 and 2024. The presentation has three sections: First, an introduction which quickly reviews the ways the startup world has changed in the past 6 months.

Metrics 122

Metrics Compensation Benchmarks Interviewing 122

Baremetrics

AUGUST 30, 2021

Few business owners are as passionate about what they do as those of SaaS companies. The owner’s equity is used to obtain investment loans or when selling a company as an investment. Sign up for the Baremetrics free trial and start seeing more into your subscription revenue now. What Is owner’s equity in SaaS?

SaaS 97

SaaS Outsourced Development Payment Services Payments 97

Baremetrics

APRIL 21, 2021

In this article, we shall get back to basics: What is SaaS finance, and what financial phases can you expect your business to go through? As a SaaS business, you’re competing not only for loyal customers and recurring revenue , but also for the attention of investors and major software companies who may want to purchase your product.

Finance 98

Finance Scale SaaS Forecasting 98

Clouded Judgement

DECEMBER 9, 2022

I went back and looked at the last ~50 software IPOs and benchmarked them across a number of metrics. The promise of SaaS is that growth in the early years leads to profits in the mature years. It shows the number of months it takes for a SaaS business to payback their fully burdened CAC on a gross profit basis.

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

Totango

AUGUST 25, 2022

Six Customer Engagement SaaS Strategies That Work. For software service providers, customer engagement SaaS strategies play a central role in a successful business model. In this article, we’ll offer some tips for a winning customer engagement SaaS strategy. Next, we’ll share six keys to effective SaaS customer engagement.

Engagement 98

Engagement Strategy SaaS Scale 98

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

The Angel VC

SEPTEMBER 29, 2012

I've been thinking about a "DOs and DON'Ts" article geared towards early-stage SaaS founders and upcoming SaaS founders for a little while now. I thought it would be a good idea to summarize what I've learned about SaaS in the last few years and put it into a format like this. So how does an attractive SaaS market look like?

Software Review 121

Software Review SaaS Payment Features Benchmarks 121

CustomerSuccessBox

JUNE 30, 2022

For a SaaS business, product adoption is one of the leading indicators of a successful and growing business. Reflecting on the fact that customer retention is the backbone of SaaS. A user adopts the product when the user moves from trying the product to investing in it as a solution. User Adoption Rate benchmarks in SaaS.

Business 52

Business SaaS Customer Lifetime Value Benchmarks 52

User Pilot

APRIL 26, 2022

Want to accelerate your SaaS product but don’t know how to drive adoption? Product adoption occurs when customers invest in your product without looking for alternatives to achieve their goals. Adoption increases customer retention, reduces churn , and increases monthly recurring revenue. What is product adoption in SaaS?

Strategy 98

Strategy SaaS Onboarding Scale 98

Kellblog

NOVEMBER 23, 2022

burn) by failing to invest in the second half of 2023 for growth in 2024. If I had to value a SaaS company with only two numbers, they would be ARR and YoY ARR growth rate. Monthly SaaS companies often have a strong focus on sequential (QoQ) growth, so you can add a row for that too, if desired. 2024 and 2025).

Technical Review 116

Technical Review Software Review Forecasting Churn 116