Tom Tunguz

MARCH 18, 2019

the company generated $107M of trailing 12 month revenue, services 33% of the Fortune 500, grew revenue at 48% and has a net retention rate of 139% across 10,800 customers. According to the recent Redpoint free trial survey, the 140% net retention puts the business in the top decile of businesses.

Metrics 197

Metrics Benchmarks Software Review Engineering 197

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. net retention and CAC payback). On the other hand, if your net revenue retention is 120%, you only need to grow new logo revenue 10% to be a “high growth” business. Subscribe now When Will Macro Improve?

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. net retention and CAC payback). The market is clearly pricing in lower rates + reacceleration of growth. Not surprisingly, these benchmarks match up relatively well with the numbers public companies reported.

Cloud 161

Cloud Software Benchmarks Scale 161

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

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

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. net retention and CAC payback). On the other hand, if your net revenue retention is 120%, you only need to grow new logo revenue 10% to be a “high growth” business. Let’s dive in.

Cloud 130

Cloud Software Review Software Benchmarks 130

ProfitWell

NOVEMBER 15, 2019

So I’ll unpack some of our favorite tools that cater to certain needs—analytics, accounting, retention, pricing, and more. There are hundreds of SaaS tools online that will help your business increase retention and decrease churn. From optimizing your pricing to CRM—there’s a tool tailored for all your SaaS needs.

Retention 56

Retention Pricing SaaS Payments Payment Methods 56

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. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions. What is CAC payback?

SaaS Payments 103

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 103

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?” Despite an uptick in logo churn attributable to COVID-19, net dollar retention was as strong as ever. Bring back your pricing and packaging initiative.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

User Pilot

OCTOBER 15, 2023

Use benchmarks to monitor your performance to see how well each stage converts. Monitor retention during the trial period so you can make changes to drive more user engagement. Emphasizing growth metrics not only boosts revenue but also improves customer satisfaction and retention by offering users more from the product suite.

SaaS Payments 102

SaaS Payments Payment Methods Payment Solutions Payments 102

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

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

By analyzing the SaaS Magic Number, SaaS companies can determine how well their revenue-driving investments (in sales, marketing, and customer retention) are translating into actual revenue growth. It helps businesses understand the effectiveness of their customer acquisition and retention strategies.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

ProfitWell

MARCH 2, 2020

Then we look at the opportunity to raise your product prices. Bottomless coffee is a huge deal—especially when it’s priced at $8.99 could be a worthier investment for your 2020. The value-based pricing zone. But, is this number alone grounds for raising their prices? Today, we start with a cup of coffee.

Retention 52

Retention Subscription Payment Features Churn 52

OpenView Labs

SEPTEMBER 23, 2019

We’re living in a remarkable era for investing. Enduring business (think Cisco, GE, Walmart) must demonstrate the ability to repeatedly generate predictable earnings – turning the massive revenue scale they’ve achieved into shareholder returns (via share price expansion and dividends). How Do I Know What My Benchmarks Are?

Benchmarks 40

Benchmarks Data SaaS Scale 40

ChurnZero

JUNE 9, 2023

This will help the finance team relate proposed investments aimed at supporting renewal with business growth. Customer renewal rate Research shows increasing retention by just 5% can improve profitability by between 25% to 95%. A healthy benchmark is a 95% renewal rate in a given period. Did pricing go up too far?

Finance 98

Finance Metrics Customer Success Headcount 98

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. Third, Mulesoft boasts great dollar retention that has grown from 110% to 117% over the last years.

Metrics 100

Metrics Benchmarks Scale Finance 100

User Pilot

MARCH 26, 2024

Retention tables. Conducting longer-term effectiveness for your users is possible with Userpilot's retention analysis feature. You can create retention tables to monitor retention rates among users over time. Book a Userpilot demo to start benefitting from retention analysis! A funnel analysis from Userpilot.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

User Pilot

MARCH 26, 2024

Retention tables. Conducting longer-term effectiveness for your users is possible with Userpilot's retention analysis feature. You can create retention tables to monitor retention rates among users over time. Book a Userpilot demo to start benefitting from retention analysis! A funnel analysis from Userpilot.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

User Pilot

MARCH 26, 2024

Retention tables. Conducting longer-term effectiveness for your users is possible with Userpilot's retention analysis feature. You can create retention tables to monitor retention rates among users over time. Book a Userpilot demo to start benefitting from retention analysis! A funnel analysis from Userpilot.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

User Pilot

MARCH 26, 2024

Retention tables. Conducting longer-term effectiveness for your users is possible with Userpilot's retention analysis feature. You can create retention tables to monitor retention rates among users over time. Book a Userpilot demo to start benefitting from retention analysis! A funnel analysis from Userpilot.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

User Pilot

MARCH 26, 2024

Retention tables. Conducting longer-term effectiveness for your users is possible with Userpilot's retention analysis feature. You can create retention tables to monitor retention rates among users over time. Book a Userpilot demo to start benefitting from retention analysis! A funnel analysis from Userpilot.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

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. Retention Rate 71.6%

Benchmarks 113

Benchmarks SMB Metrics SaaS 113

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 views expressed herein are the author’s alone and do not constitute an offer to sell, or a recommendation to purchase, or a solicitation of an offer to buy, any security, nor a recommendation for any investment product or service.

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

ProfitWell

NOVEMBER 1, 2019

But after working with hundreds of SaaS companies, I've realized that the same advice applies for your retention rate as well. But just like avoiding the yeti is way more fun than restarting the game, boosting your retention is more fun—and way more valuable—than acquiring more customers. Align team incentives around retention.

Retention 56

Retention Strategy Underperforming Technical Team SaaS 56

Tom Tunguz

NOVEMBER 7, 2019

The discipline of customer success varies widely depending on price point. At the lower price points, some organizations combine the role of an account manager and the customer success person into a CSAM (customer success account manager). In these scenarios, investing in larger post sales teams drives account growth.

Compensation 113

Compensation Scale Benchmarks Customer Success 113

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. Net dollar retention: What happens to every dollar of new MRR you acquire?

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

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

OPEXEngine

MAY 18, 2021

Contracted expansion revenue i.e. add-ons or upgrades that affect the annual subscription price of the customer should be included. . Conversely, EBITDA is more highly valued for a $500M company than for a $5M recurring revenue company were investing in Sales & Marketing, and systems to scale the business are critical to future success.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

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.

Benchmarks 117

Benchmarks Data Cybersecurity Cloud 117

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

OPEXEngine

JANUARY 30, 2020

More capital invested, more SaaS offerings, continued expectations of rapid growth are running smack into limits on the availability of qualified employees and a potential economic slow-down which may or may not happen. was invested in the US alone by VCs in 2019. Not all of that will be reinvested, but a lot will. billion in 2019.

Sales Hiring 49

Sales Hiring Benchmarks SaaS Acquisition 49

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 124

SaaS Payments Payment Solutions Merchant Services Software Review 124

Chart Mogul

DECEMBER 20, 2023

SaaStr CEO Jason Lemkin referencing ChartMogul research in his opening keynote, SaaStr 2023 Our SaaS Retention Report exposed that companies with best-in-class retention grow at least 1.5 Then our 2023 SaaS Benchmarks Report brought light to how performance trends were reacting to a changing economic context. Bring on 2024!

Scale 52

Scale Subscription Payment Features Benchmarks 52

OpenView Labs

JANUARY 19, 2022

This can sometimes be the toughest step of the user journey for early startups to tackle, especially if they don’t invest in design or messaging. OpenView compiles benchmarks on this metric annually , so check out the report if you want to see how your business stacks up. . Predictive of user retention. Web design. Web design.

Scale 72

Scale Underperforming Technical Team Sales Hiring Marketing 72

User Pilot

APRIL 24, 2024

Effective renewal strategies enhance customer retention , drive revenue , and build a loyal base for long-term SaaS success. User retention rate measures long-term user engagement, calculated by adjusting end-period users for new acquisitions, and then dividing by start-period users.

SaaS Payments 78

SaaS Payments Retention Payment Services Payment Solutions 78

OPEXEngine

JANUARY 13, 2021

Large tech companies are expected to be very active in M&A in 2021, as they build out SaaS offerings and platform strategies, especially given high stock prices. From the bottom: VC, PE, and angel investors are expected to continue strong investment in SaaS. Security investments and attention to data privacy will increase. .

Sales Recruiting 52

Sales Recruiting Sales Hiring SaaS Benchmarks 52