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 109

Benchmarks Retention Subscription Payment Features 109

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

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. However, it is essential to realize that this rate can vary depending on the industry, price segment, product type, and other factors.

Benchmarks 40

Benchmarks Payment Methods Payment Services Payments 40

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% Additionally, while U.S.

SaaS Payments 144

SaaS Payments Payment Solutions Software Review Merchant Services 144

SaaStr

AUGUST 21, 2023

So SaaStr itself is a little funky — we only have 9 team members but a fair amount of scale in terms of reach, revenue, and in some cases, software utilization. The price? To some extent, it’s just a natural output of how enterprises price. So we pay close to the lowest price for the Enterprise vendor — $15,000 a year.

SMB 227

SMB Enterprise Scale Pricing 227

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

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

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

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

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Results in an Increase in Revenue 2. Raise Prices for New Customers 2.

Pricing 111

Pricing SaaS Scale Churn 111

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

ChurnZero

JUNE 24, 2022

In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. 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

Baremetrics

OCTOBER 21, 2020

Revenue churn answers the question: how much MRR did we lose last month? The SaaS business model is built on the concept of retaining as much of your monthly recurring revenue (MRR) as possible. What’s negative revenue churn? Four ways to reduce revenue churn right now be honest How well do you know your business?

Churn 118

Churn Revenue Benchmarks Pricing 118

Chart Mogul

MARCH 22, 2022

Your monthly recurring revenue (MRR) just shot up. Your monthly recurring revenue (MRR) just shot up. Your monthly recurring revenue (MRR) moves every day. Benchmarking MRR Movements by MRR Band s. MRR Added Benchmarks. As businesses grow, the proportion of revenue generated from new business decreases.

Benchmarks 52

Benchmarks Churn Startup Revenue 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. It’s a win-in.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

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

Baremetrics

JANUARY 10, 2022

Optional product pricing is a pricing strategy whereby the core component of a product is sold for a basic price, and a menu of complementary services are offered for a separate fee. Optional product pricing often employs the concept of a loss leader. What is optional product pricing? Table of Contents.

Pricing 98

Pricing Airlines Systems Review Outsourced Development 98

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

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.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

SaaStr

MAY 25, 2023

So ChartMogul pulled together some nice data and statistics across its 2,100 SaaS customers and users for its 2023 Benchmarks report here. My favorite hart is this one, that tracks how Top Quartile SaaS companies have grown the past few years: What it shows it what we all sort of know, but puts specifics on.

SaaS 210

SaaS Benchmarks Startup Pricing 210

Chart Mogul

JUNE 24, 2021

Pricing localization is a strategy where you present the price of your SaaS differently depending on where the customer lives. You may also hear it referred to as multi-currency pricing or localized pricing. The answer is likely no because there’s no such thing as a universal price, even for an identical house.

Pricing 128

Pricing SaaS Payments Payments Payment Features 128

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. DataDog is playing across price points. Look at that beautiful curve!

Metrics 189

Metrics Benchmarks Scale User Experience 189

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The market is clearly pricing in lower rates + reacceleration of growth. Beating consensus revenue estimates is the first aspect of a successful quarter. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Scale 161

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. Looking at gross margin, which is the revenue minus the cost of goods sold (typically hosting costs and customers success), PagerDuty tops the list of 85%.

Metrics 195

Metrics Benchmarks Software Review Engineering 195

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

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. Unlike later rounds, Series A pricing has no correlation to MRR or next-twelve-months (NTM) revenue, which is a proxy for growth rate.

Benchmarks 100

Benchmarks SaaS Pricing Investment 100

Chart Mogul

JUNE 1, 2023

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? Whether net revenue retention, gross revenue retention, or customer retention is your north star metric, we’ve got you covered. What is customer retention?

Retention 90

Retention Metrics Benchmarks SaaS 90

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

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

AUGUST 27, 2014

Following this week’s post Benchmarking HubSpot’s S-1, Josh and Nikos raised an interesting question on Twitter. What are the right ways to benchmark SaaS companies from their early days through IPO? Grouping companies by Revenue at IPO to compare growth rates. Using time before/since-IPO for the time axis.

Benchmarks 111

Benchmarks Startup SaaS Revenue 111

ProfitWell

SEPTEMBER 30, 2019

Revenue is good. Lots of revenue is great. Optimized revenue is better. Because the world of e-commerce is so restless, as soon as your company finds itself bringing in steady revenue, the first question anyone will be asking is: How can we make this performance even better ? What is revenue optimization?

Revenue 40

Revenue Pricing Outsourcing Services Merchant Services 40

Baremetrics

FEBRUARY 15, 2021

Confused about customer churn vs. revenue churn? Revenue churn — the amount of revenue you've lost. Revenue churn = money lost. This article will cover everything you need to know about customer churn vs. revenue churn. What is Revenue Churn? How to Prevent Customer Churn and Revenue Churn Bottom Line.

Churn 105

Churn Payments Revenue SaaS Payments 105

CustomerSuccessBox

FEBRUARY 17, 2022

Most people judge the performance of a SaaS company by its Monthly Recurring Revenue (MRR) while evaluating a company by its Net Dollar Retention (NDR) can provide much more valuable insight. Acquiring new users creates a revenue stream that exceeds net revenue from your existing user base. What is Net Dollar Retention?

Benchmarks 52

Benchmarks Retention Churn Subscription 52

Clouded Judgement

DECEMBER 20, 2022

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: (Q3 ’22 revenue) / (Q3 ’21 revenue) - 1. net retention and CAC payback).

Cloud 130

Cloud Software Review Software Benchmarks 130

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

Chart Mogul

MARCH 23, 2023

Are you effectively expanding revenue from your existing customer base? Gross revenue retention (GRR) and net revenue retention (NRR) are the key metrics to understand how well … How good is your business at retaining customers? Are you effectively expanding revenue from your existing customer base?

Retention 52

Retention Metrics Revenue Scale 52

Baremetrics

APRIL 13, 2021

Value-based pricing is a pricing strategy that sets prices according to the estimated value of how a product might be perceived by a customer. It does not take into account the cost of developing the product and its past prices. The company then adds a premium to it and comes up with a sale price.

Pricing 59

Pricing Customer Lifetime Value Forecasting Benchmarks 59