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

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. What is revenue? What is revenue?

Payments 103

Payments Revenue Payment Services SaaS Payments 103

SaaStr

SEPTEMBER 2, 2023

The higher a company’s retention, the easier it is to grow, as the company doesn’t have to replace as much lost revenue. Figure 5 comes from our 2023 SaaS Retention Benchmarks for Private B2B Companies and highlights the relationship between growth and retention. Invest wherever, however you can in increasing NRR.

Startup 255

Startup SaaS SMB Banking 255

Tom Tunguz

NOVEMBER 3, 2021

Before, most investors used forward ARR multiples to value companies, but recently, the 100x multiple seems to be a benchmark for SaaS companies raising rounds. I estimated ARR as the annualized revenue of the most recent fiscal quarter. I estimated ARR as the annualized revenue of the most recent fiscal quarter.

Benchmarks 359

Benchmarks Startup Metrics Revenue 359

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. The two most important changes are changes to revenue and profitability. Today, all software revenue is recognized ratably over the contract period. in new hosted recurring revenue).

Revenue 223

Revenue Benchmarks SaaS Finance 223

User Pilot

AUGUST 10, 2023

Benchmarking this crucial metric against your industry helps you assess your standing relative to your competition. In this article, we’ll delve into the ins and outs of CAC, its industry-specific benchmarks, and the proven practices to improve it. Ideally, the CAC should be around 1/3 or 1/4 of the LTV.

Acquisition 74

Acquisition Benchmarks Customer Lifetime Value B2B 74

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

JANUARY 21, 2022

Dorian Stone , Head of Organizations Revenue at Grammarly, is here to share lessons from his experience of scaling the company from consumer to SMB to Enterprise to help you steer your expansion efforts in the right direction. But the truth was, the campaign was performing above the benchmark, but it was a new area for them.

Scale 210

Scale SMB Enterprise Sales Hiring 210

Tom Tunguz

AUGUST 26, 2019

24% of revenues are international. The company is currently at $333M in quarterly ARR and generated $265M in trailing 12 months revenues, up from $145M the previous period. At the time of IPO, both DDOG and APPD filed at about $200M in revenue. One last chart: revenue dollars at IPO per venture dollar invested.

Metrics 189

Metrics Benchmarks Scale User Experience 189

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

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. While SaaS is an amazingly transparent community with abundant benchmarking resources, there are much fewer publicly available studies that allow an analysis of the underlying drivers of “Rule of 40.”

SaaS 269

SaaS Technical Review Benchmarks Azure 269

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. At the peak of bull market exuberance at the end of 2021, a 1% improvement in revenue growth had the same impact on valuations as a 6% improvement in free cash flow margin.

Cloud 250

Cloud Payments Software Review Payment Solutions 250

ChurnZero

NOVEMBER 11, 2022

1: Customer Success teams are driving revenue and earning more influence. to the chief revenue officer—all indicating that Customer Success teams are revenue drivers. In companies with $500M or more in revenue, one-third (30.3%) of CS leaders have a place in the C-suite. The top metrics in CS are all revenue metrics.

Leadership 98

Leadership Trends Customer Success Investment 98

SaaStr

SEPTEMBER 5, 2023

Then I started investing and I came up with a basic ruie that the best startups needed to grow at least 8% a month once they crossed $1m ARR. But if you are really going for it, and hit $1m ARR and want to know how hard to push — well, the data above is super helpful to benchmark yourself against. It took us about 5.5

SaaS 235

SaaS Benchmarks Startup Investment 235

ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. Q: How do you calculate net revenue retention for a usage-based model? I still think that net revenue retention works really well. They amortize the revenue 1/12 th every month. Q&A Recap. Growth is king.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

SaaStr

SEPTEMBER 19, 2023

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. Strive for $150k of revenue per FTE.

Business Model 251

Business Model SaaS Payments Payments Headcount 251

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

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. Sales efficiency is a measure of the marginal gross profit generated by a dollar invested in sales and marketing.

Metrics 195

Metrics Benchmarks Software Review Engineering 195

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

OPEXEngine

JUNE 4, 2020

Last week we published the most recent SaaS & Software benchmarks in our platform used by companies in their FP&A analyses for management, boards and investors. In the 2020 Benchmarks, we added a number of new benchmarks around compensation expense, plus, a measure of the SaaS Cash Conversion Rate, popularized by Bessemer.

Benchmarks 45

Benchmarks SaaS Technical Review Software Review 45

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. In fact, PLG companies generate 1.7x Forget the Rule of 40.

VP of Engineering 64

VP of Engineering Benchmarks Sales Hiring B2B 64

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 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

Andreessen Horowitz

DECEMBER 4, 2023

And, especially when you’re considering integrating a new technology platform into your business—like AI today, or cloud a decade ago—how do you invest in innovation without losing control of your runway and budget? Some investments will generate returns within a few months, while others may take years to produce results.

Underperforming Technical Team 124

Underperforming Technical Team Benchmarks CTO Hire New CTO 124

SaaStr

NOVEMBER 30, 2023

The four stages of growth are: Early stage Early growth Growth Pre-IPO Each of those stages has key GTM milestones, benchmarks, and team-building strategies that allow you to grow effectively. This is the stage where best-in-class companies can double or triple revenue in the first few years of growth.

Scale 237

Scale Sales Hiring Scaling Outsourced Development 237

SaaStr

DECEMBER 21, 2023

Software Revenue Multiples On the chart below, the darker blue line shows the median revenue multiple for 100 software companies. For those unfamiliar with revenue multiples, it’s a valuation methodology for comparing relative valuations of businesses. At the same time, the 10-year benchmark rate has gone from 2.2%

SaaS 253

SaaS Software Metrics Revenue 253

SaaStr

NOVEMBER 17, 2022

We take on the heavy lifting without requiring you to invest in additional resources. We track your progress and provide monthly executive level reporting on achievement against industry-recognized benchmarks and best practices. appeared first on SaaStr.

Banking 233

Banking Payment Features Venture Capital Subscription 233

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. Median Monthly Revenue Churn is 0.75%.

Benchmarks 111

Benchmarks Startup Sales Hiring Compensation 111

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?” Respondents were primarily CEOs (38%) and CFOs (29%) at expansion stage software companies with $1 to $20MM in annual recurring revenue (57%).

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

ChurnZero

JANUARY 8, 2024

This non-headcount approach is a technique for understanding how SaaS companies are investing in the needs of their customer success teams. Across companies of all sizes, businesses invested an average of $260,120 on non-headcount customer success budgets in 2023. Below is the average breakout based on company size by revenue.

Customer Success 52

Customer Success Headcount Benchmarks Leadership 52

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

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. MobileIron went public on Jun 12, 2014 with $100M in revenue and more than 6,000 customers. just two years before.

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

Tom Tunguz

SEPTEMBER 14, 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. Before diving into the benchmarks too deeply, I want to explain how different Veeva’s business is than most.

Benchmarks 119

Benchmarks Metrics SaaS Healthcare 119

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

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 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