SaaStr

SEPTEMBER 19, 2023

Many of the fundamental business models that were once engraved in the SaaS playbook are now changing thanks to a tougher macro environment and a maturing market. PST, Stephanie Opdam, Partner at Notion Capital, shares four business model changes that will allow SaaS companies to build resilience and staying power over time.

Business Model 247

Business Model SaaS Payments Payments Headcount 247

SaaStr

FEBRUARY 27, 2024

Go-to-market (GTM) design and efficiency are sometimes overlooked, but they’re a critical driver of any SaaS business. Previously in SaaS, it was widely seen that anything > 1 was healthy if you were venture-backed, and anything > 1.5 is was seen as perhaps too capital-efficient. If you were well-funded, 0.7

VP of Engineering 222

VP of Engineering Scale Marketing Benchmarks 222

OPEXEngine

DECEMBER 13, 2022

Most SaaS executives can relate to a friendly debate they’ve had at a board or leadership team meeting about what percentage of revenue should come from “upsells” to existing customers or what is “healthy churn.” When these SaaS “rules of thumb” are shared and used in this way, there is a real risk of making the wrong decisions.

Benchmarks 52

Benchmarks Scale Headcount Software Review 52

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. The average CAC varies across industries. What is customer acquisition cost (CAC)?

Acquisition 74

Acquisition Benchmarks Customer Lifetime Value B2B 74

Tom Tunguz

FEBRUARY 24, 2016

At SaaStr 2016 and SaaS Office Hours in New York , I shared an analysis of the fastest growing SaaS companies over the last 3 years. 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.

Benchmarks 100

Benchmarks SaaS Pricing Investment 100

SaaStr

DECEMBER 21, 2023

What’s really going on in the world of SaaS right now, from software valuations to business performance to interest rates? PST, Jamin Ball, Partner at Altimeter Capital and author of Clouded Judgement , took us through the current state of SaaS and what we should expect in 2024. Software is a riskier investment.

SaaS 248

SaaS Software Metrics Revenue 248

ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. This survey is the largest survey of private SaaS companies in the world with over 1,500 responses. An overview of the current B2B SaaS market and valuation drivers. Q&A Recap. I will say this much.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

SaaStr

NOVEMBER 5, 2021

The “Magic Number” is one of those metrics in SaaS that has always sort of vexxed me. To grow faster in general, and to expand into segments where maybe you are less competitive (and thus have to invest more in sales and marketing). Critical to adjust Magic Number for SaaS businesses with lower gross margins.

Scale 260

Scale SaaS Acquisition Benchmarks 260

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. No SaaS application can hide from you anymore.

Technical Review 52

Technical Review Software Review SaaS Benchmarks 52

Clouded Judgement

APRIL 11, 2024

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 177

Cloud Software Azure AWS 177

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. Here are the estimated ARR multiples for public SaaS companies. Regardless, the 100x ARR multiple seems to be a benchmark in the industry today. Is it warranted?

Benchmarks 359

Benchmarks Startup Metrics Revenue 359

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

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

Stax

FEBRUARY 21, 2024

For modern Software as a Service (SaaS) companies, the automobile is replaced by primarily digital and cloud-based solutions and software. 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.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

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

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

User Pilot

APRIL 29, 2024

Mastering SaaS renewals’ best practices can transform a routine administrative task into a strategic opportunity to drive customer success and propel your business toward sustainable growth. TL;DR The SaaS renewal process involves a series of actions on/before the renewal date that lead to a customer’s renewal.

SaaS Payments 79

SaaS Payments Business SaaS Payment Solutions 79

OPEXEngine

JUNE 14, 2022

BOSTON, June 13, 2022 – OPEXEngine, the world’s leading SaaS benchmarking platform, today launches its new R&D benchmarks solution. The benchmarks help technology executives invest in R&D with more confidence by comparing their own costs and performance with similar organizations.

Technical Review 45

Technical Review Benchmarks Outsourcing Services Development Team Review 45

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 136

Metrics SaaS Benchmarks Churn 136

SaaStr

AUGUST 10, 2023

“Jason Lemkin is the Founder @ SaaStr one of the best-performing early-stage venture funds focused on SaaS. In the past, Jason has led investments in Algolia, Pipedrive, Salesloft, TalkDesk, and RevenueCat to name a few. What has changed in what investors expect and want to see in potential Series A and B investments?

Benchmarks 221

Benchmarks Investment Pricing Product Marketing 221

SaaStr

MARCH 27, 2023

Capchase Co-Founder & CEO Miquel Fernandez and 01 Advisors VP Kristen Clifford use data to show us what differentiates the best SaaS companies from the rest. The top SaaS companies are growing really fast, roughly at twice the rate of their peers. As a refresher, the rule of 40 is a measure of sustainable growth for SaaS companies.

SaaS Payments 206

SaaS Payments Technical Review Software Review Venture Capital 206

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

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?” ” In short: It made SaaS companies even stronger. It’s time for SaaS companies to hit the gas again and reinvigorate growth in 2021.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

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 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

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. A few weeks ago, to great fanfare, the marketing automation Cloud leader Klaviyo filed an S1, marking the first pure SaaS company to file to go public in a 2-year draught in SaaS IPOs.

Cloud 245

Cloud Payments Software Review Payment Solutions 245

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

OpenView Labs

NOVEMBER 18, 2021

Today we released our fifth annual Financial & Operating Benchmarks Survey (formerly known as Expansion SaaS Benchmarks). It’s now all about the Rule of 30: 30% topline growth — This shift in thinking is informed by the massive (and growing) total addressable market (TAM) in SaaS. In fact, PLG companies generate 1.7x

VP of Engineering 64

VP of Engineering Benchmarks Sales Hiring B2B 64

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.

Benchmarks 111

Benchmarks Startup Sales Hiring Compensation 111

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. Today, we’ll look at Veeva, masters of the massive enterprise sale, and one of the most remarkable SaaS businesses.

Benchmarks 119

Benchmarks Metrics SaaS Healthcare 119

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. As I mentioned above, MobileIron is a hybrid business combining both perpetual license and SaaS models.

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

Clouded Judgement

DECEMBER 21, 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 177

Cloud Software Benchmarks Retention 177

ChurnZero

NOVEMBER 11, 2022

of Customer Success teams have fewer than 50 team members, and most teams surveyed fall well below industry benchmarks on CS team headcount. That number gets higher in larger companies, companies with larger Customer Success teams, and companies who have invested in a Customer Success platform. Learn from three SaaS CEOs.

Leadership 98

Leadership Trends Customer Success Investment 98

OPEXEngine

JUNE 2, 2022

2021 was an incredible year of growth and investment for the SaaS industry. Companies achieved all-time high valuation multiples while investors poured massive amounts into SaaS. SaaS: The OPEXENGINE 2021 to 2022 Financial Comparison is Here. while public market valuations remain closely tied to growth rates.

Benchmarks 64

Benchmarks SaaS Banking Trends 64

OPEXEngine

AUGUST 23, 2022

Our August SaaS conversation focused on high performance in R&D, with OPEXEngine CEO and Founder Lauren Kelley hosting Bain Expert Partner Rob Levy for an energizing discussion on this critical topic. R&D Spend as a % of Revenue Benchmarks. Top R&D KPIs Every SaaS Company Should Track & Benchmark.

Outsourcing Services 59

Outsourcing Services Technical Review CTO Coach Software Review 59

OPEXEngine

SEPTEMBER 15, 2021

OPEXEngine provides SaaS and Software companies with comprehensive and accurate analytics and benchmarks to help executives understand and improve operational performance. Investors and software company management need high quality and neutral benchmarks to assess their operational performance, reduce risk and improve efficiency.

Software Review 52

Software Review Benchmarks Technical Review Development Team Review 52

SaaStr

DECEMBER 6, 2019

Q: How many employees does a SaaS company have at 100M ARR? Tomasz Tuguz did a great analysis here last year on public SaaS companies: Revenue per Employee Benchmarks of Billion Dollar Companies. “[in What’s changed since a lot of those companies IPO’d is most SaaS companies raising $370m+ before IPO’ing (!).

SaaS 167

SaaS Benchmarks Revenue Investment 167