Tom Tunguz

JUNE 26, 2022

The market values COIN, Coinbase’s stock, and UNI, Uniswap’s token at about 3x trailing 12-month revenues. As the market has corrected, so have the trailing 12-month revenues (TTM)/Market Cap multiples. Coinbase and Uniswap generate billions in revenue. in revenue in the same period.

Benchmarks 309

Benchmarks Headcount Government Business Model 309

SaaStr

NOVEMBER 30, 2023

A great product, while necessary, isn’t sufficient to build a market leader and eventually a public company. Companies that win a market are just as good at Go-to-Market as they are at building great products. But to develop a GTM strategy, you must have Product Market Fit. Without it, you don’t have a business.

Scale 223

Scale Sales Hiring Scaling Outsourced Development 223

FastSpring

OCTOBER 25, 2023

data suggest a smaller lift of only 11% in November, keep in mind that North America accounts for a very large share of global software and SaaS sales, with one study reporting 43% of 2022 global software revenue attributed to North America , and another reporting a share of up to 57.5% of the 2020 global SaaS market attributed to NA.

SaaS Payments 135

SaaS Payments Payment Solutions Software Review Merchant Services 135

How To Buy Saas

APRIL 5, 2024

Benchmarking, or bounce rate averages industry, provides invaluable data that can help companies identify areas for improvement and implement best practices. Benefits of Benchmarking Bounce Rates Benchmarking failure rates in the e-commerce industry offer many benefits.

Benchmarks 40

Benchmarks Payment Methods Payment Services Payments 40

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The first few months of this year felt like a lot of churning in the market. Q4 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q4 starting with revenue.

Cloud 177

Cloud Software Azure AWS 177

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.” That’s because benchmarks need to fit the business model and require context in order to be applied in a relevant way.

Benchmarks 52

Benchmarks Scale Headcount Software Review 52

ChurnZero

JUNE 24, 2022

With the “great resignation,” fluctuations of the public and private markets, and the omnipresent pandemic, we find ourselves continuously, and quickly, adapting to the shifting landscape. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98

User Pilot

AUGUST 10, 2023

And the customer acquisition cost (CAC) shows you how effective you’re with your sales and marketing efforts to acquire new customers. Benchmarking this crucial metric against your industry helps you assess your standing relative to your competition. The average CAC varies across industries. Customer acquisition cost formula.

Acquisition 87

Acquisition Benchmarks Customer Lifetime Value B2B 87

Chart Mogul

MARCH 1, 2023

Companies are a lot more similar at a particular average revenue per month (ARPA) band than you’d expect, especially in terms of retention. See chapter 2 in the report to learn more about net retention benchmarks. In the pre-product market fit stage of the business, net retention is usually poor. In contrast, 41.1%

Benchmarks 98

Benchmarks Retention B2C Business 98

Kellblog

JUNE 10, 2021

This is a quick post to share the slides I presented today at the GainSight Pulse Everywhere 2021 conference in a session entitled Net Dollar Retention, Key Benchmarks at $50M, $200M, and $1B in annual recurring revenue (ARR). In the session we discuss: The answer, which is 104%. Median NDR which is surprisingly invariant across size.

Benchmarks 110

Benchmarks Retention Subscription Payment Features 110

Tom Tunguz

SEPTEMBER 1, 2021

Revenue, $M. Revenue Growth. -. Amplitude’s revenue growth rate is in the top quartile for modern software companies at 49%. Both the ACV and large customer contribution are increasing with time suggesting the company continues to focus up-market. Gross Margin. Sales Efficiency. -. Net Income Margin. Customer Count.

Metrics 294

Metrics Benchmarks PayPal Enterprise 294

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

Chart Mogul

JULY 6, 2023

We’ll also share the latest benchmarks on negative churn among SaaS businesses. Benchmark your churn metrics against 2100+ SaaS businesses How negative churn causes explosive growth How to achieve net negative revenue churn What is churn? If you want, you can learn more about churn basics and benchmarks on our blog.

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

Unbounce

APRIL 15, 2021

You might’ve noticed that 2020 was an interesting year for marketing. For some marketers, the effects of a global health crisis felt (and continue to feel) insurmountable. There are even a lucky few marketers who hardly noticed it—at least in terms of their conversions. Introducing the 2021 Conversion Benchmark Report.

Benchmarks 145

Benchmarks Machine Learning Artificial Intelligence AI Search 145

Chart Mogul

MAY 24, 2023

I couldn’t be more excited to launch the 2nd edition of the ChartMogul SaaS Benchmarks Report. In this report, we analyze anonymized and aggregated data from over 2,100 SaaS businesses to bring you the latest SaaS benchmarks and growth trends. In today’s market average is losing – or more accurately, median is losing.

Benchmarks 52

Benchmarks SaaS PayPal Retention 52

Sales Hacker

OCTOBER 19, 2022

Revenue performance is the focus of the entire sales org. Yet questions still arise around the data being used to inform the strategy that will drive revenue performance… i.e. How do I benchmark my team? You’ll learn: How to benchmark the skills that make up your top performers across different go-to-market roles.

Revenue 86

Revenue Benchmarks Data Strategy 86

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. How does it compare to the public markets' valuation of companies? I estimated ARR as the annualized revenue of the most recent fiscal quarter. Is it warranted?

Benchmarks 362

Benchmarks Startup Metrics Revenue 362

SaaStr

SEPTEMBER 7, 2022

What about moving from founder-led sales to building a sales team and scaling your revenue growth? Demodesk’s CEO, Veronika Riederle, and VP of Revenue, Lauren Wright, answer the most pertinent questions on scaling a SaaS start-up as they take us through lessons learned from the three stages of growth. Product-Market Fit .

Sales Hiring 191

Sales Hiring Scale Revenue Sales 191

Tom Tunguz

DECEMBER 16, 2013

One way of measuring the efficiency of a company’s revenue model is to benchmark revenue per employee. Google and Facebook, the two most efficient companies, generate $1M per revenue per employee per year. Revenue per employee isn’t a leading indicator of success, but a lagging one.

Benchmarks 100

Benchmarks Revenue Scale Sales Hiring 100

Kellblog

FEBRUARY 27, 2022

Question: how much does a $15M SaaS company spend on sales and marketing as a percent of ARR? Charts like this, from OpenView’s 2021 Financial & Operating Benchmarks survey , help us answer questions like that all the time. The company is not making much progress towards the benchmark. Normally, it’s not.

Sales Hiring 131

Sales Hiring Marketing Sales Benchmarks 131

Tom Tunguz

SEPTEMBER 16, 2017

How much should a SaaS startup invest in sales and marketing at different stages of the business? This is a very nuanced question, but benchmarks do provide some guidance for what is reasonable. The chart above shows the sales and marketing investment of publicly traded software companies at different revenue levels.

Investment 274

Investment Startup Marketing SaaS 274

Tom Tunguz

OCTOBER 15, 2014

In the past, we have benchmarked the revenue per employee of large publicly traded SaaS companies and determined that the average is about $200k of revenue per person. But, that analysis examined revenue per employee that only one point in time. It’s the fastest revenue per employee growth, recording 18.6%

Benchmarks 100

Benchmarks Revenue Scale Metrics 100

Tom Tunguz

MARCH 24, 2019

The company grew from $61m to $331m in revenue in the past three years. One key driver of profitability is labor-market arbitrage. The result is the company spends less than 10% of its revenue on R&D, which is less than half the median of the peer set. These metrics are the result of exceptional product market fit.

Metrics 279

Metrics Benchmarks Scale Acquisition 279

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

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

Baremetrics

MARCH 23, 2021

When looking at metrics and benchmarks for SaaS companies , the quality of their landing page is a big part of what starts people moving down the sales funnel. Other concerns affect these rates of conversion as well and studying all of them with the proper benchmarks in place; makes it easier for every company to succeed.

Benchmarks 75

Benchmarks SaaS Social Media Sales Funnel 75

Baremetrics

APRIL 27, 2021

Revenue forecasting models help you plan your next phase of growth. The Baremetrics article "The SaaS Financial Model You'll Actually Use" describes how to create financial models you can use to plan out your next steps—even when your total revenue falls short and things don't go as expected. What is Revenue Forecasting?

Forecasting 89

Forecasting Revenue Sales Hiring Outsourced Development 89

User Pilot

AUGUST 2, 2023

With the amount of data companies have available, there is no excuse not to use data-driven email marketing. Whereas data-driven email marketing uses valuable customer data to send the right email at the right time to assist with your product’s growth. What is data-driven email marketing? Book a demo now.

Data 96

Data Strategy Marketing Software Review 96

Tom Tunguz

APRIL 29, 2019

Slack generated $105m in revenue in 2017, $221m in 2018 and $401m in 2019. Zoom, in blue has been smaller in each year, but is growing faster.This compares to $61m, $151m and $331m in revenue for Zoom. One dollar of sales and marketing spend today generates $1.11 Slack spends 39% of revenues on R&D compared to 10% for Zoom.

Benchmarks 279

Benchmarks Metrics Scale Revenue 279

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. SVB collapsed, market multiples are down, yet the IPO window is re-opening, and we have a platform shift to AI that’s exciting everybody. What does this mean for Cloud companies?

Cloud 235

Cloud Payments Software Review Payment Solutions 235

User Pilot

NOVEMBER 27, 2023

There are two types of churn to look out for: customer churn and revenue churn. Inevitably, this hits your bottom line, and your revenue decreases. There are two main types of churn, namely, customer churn and revenue churn. Then subtract the two to get net revenue lost. How to calculate the churn rate?

Churn 92

Churn Retention Benchmarks Customer Lifetime Value 92

ChurnZero

JUNE 24, 2022

With the “great resignation,” fluctuations of the public and private markets, and the omnipresent pandemic, we find ourselves continuously, and quickly, adapting to the shifting landscape. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

Benchmarks 52

Benchmarks Retention Software Review Technical Review 52

OpenView Labs

NOVEMBER 30, 2021

In 2021 the ‘ Rule of 40’ died, according to our latest 2021 Financial & Operating Benchmarks report that launched last week. . The ‘haves’, defined by growing quickly out of the gate and then maintaining 50% or faster revenue growth at significant scale, have seen their valuations skyrocket over the years.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. An overview of the current B2B SaaS market and valuation drivers. Q: How do you calculate net revenue retention for a usage-based model? I still think that net revenue retention works really well.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

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

Buffer Resources

JANUARY 19, 2024

From the moment I started my company, Motif Skincare , I knew I was entering a crowded market with high customer acquisition costs. This isn’t to say I don’t do any top-of-the-funnel marketing. It would be challenging to compete with influencers and larger brands when it comes to fueling new customer discovery.

Marketing 98

Marketing Benchmarks Social Media Retention 98

Chart Mogul

JUNE 1, 2023

In an uncertain market, customer retention is key. In an uncertain market, customer retention is key. Tips for tracking customer retention Four strategies to improve customer retention SaaS retention FAQ Is revenue retention more relevant to your business at the moment? Companies with best-in-class retention grew at least 1.8x

Retention 90

Retention Metrics Benchmarks SaaS 90