Tom Tunguz

NOVEMBER 18, 2021

71% is the public SaaS company median. Multi-year deals are much more common at price points greater than $150k. The company’s metrics all recorded positive gains including gross margin moving from 60% to 70%, which is impressive for a business providing hardware. But these contracts produce compelling economics.

CTO Hire 357

CTO Hire CTO Coach Benchmarks Scale 357

Baremetrics

AUGUST 8, 2021

For most SaaS businesses, customer acquisition is one of the most challenging stages of growth. 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.

Pricing 111

Pricing SaaS Scale Churn 111

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). The rise of NDR as the SaaS metric of choice. In the session we discuss: The answer, which is 104%.

Benchmarks 110

Benchmarks Retention Subscription Payment Features 110

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. Like a rock.

SaaS 205

SaaS Benchmarks Startup Pricing 205

ChurnZero

JUNE 24, 2022

What does this mean for B2B SaaS businesses? In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. It’s the largest survey of private SaaS companies in the world with over 1,500 responses.

Benchmarks 52

Benchmarks Retention Software Review Technical Review 52

Baremetrics

MARCH 23, 2021

A lot of people are concerned about their SaaS conversion rate, with the typical question being: What is a good conversion rate? 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. 3 What Benchmarks Do You Want to Use?

Benchmarks 75

Benchmarks SaaS Social Media Sales Funnel 75

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

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., This has all resulted in the median stock price declining 5% YTD.

Cloud 177

Cloud Software Azure AWS 177

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. . And there’s more and more bifurcation between the ‘haves’ – the fast growers – and the ‘have nots’ of SaaS than ever before. The new data reveals a similar picture for private SaaS startups. .

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

Chart Mogul

JUNE 1, 2023

Retention is one of the most important metrics when building a successful SaaS business. Retention is one of the most important metrics when building a successful SaaS business. Then, we’ll share some practical advice for tracking retention metrics and suggest 4 strategies SaaS businesses can use to improve customer retention.

Retention 90

Retention Metrics Benchmarks SaaS 90

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

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

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

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

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

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

SaaStr

AUGUST 21, 2023

The price? To some extent, it’s just a natural output of how enterprises price. They are focused on pricing per units that scale organically in the enterprise — seats, workflows, etc. They are focused on pricing per units that scale organically in the enterprise — seats, workflows, etc. 5x more for the SMB vendor! $50k

SMB 223

SMB Enterprise Scale Pricing 223

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? Bucketing by ACV for revenue growth won’t shed much more insight into benchmarks than the raw median.

Benchmarks 111

Benchmarks Startup SaaS Revenue 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?” ” 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

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

Chart Mogul

MARCH 22, 2022

Let’s dive deeper into how your SaaS business adds or loses MRR. And how those changes are categorized in SaaS as MRR movements. Benchmarking MRR Movements by MRR Band s. MRR Added Benchmarks. This is because as SaaS businesses grow, they focus their energy on increasing revenue from their existing customers.

Benchmarks 52

Benchmarks Churn Startup Revenue 52

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

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

FastSpring

SEPTEMBER 16, 2022

In our first post about our online community , we mentioned launching the Global SaaS Leaders Slack group because we saw a need for the kind of software-and-SaaS-focused community we’d want to be a part of. Our Guiding Principle: Our Software and SaaS Community Must Be Good for You in Order for It to Succeed.

SaaS Payments 133

SaaS Payments Payment Solutions Merchant Services Software Review 133

User Pilot

FEBRUARY 7, 2024

Your SaaS product’s free trial conversion rate is one of the most important growth metrics to track. This guide will go over what the free trial conversion rate is, why it’s important to track, how to calculate it, what a good benchmark is, and the factors that influence it! to 29% depending on the industry. Evaluating PMF.

SaaS Payments 52

SaaS Payments Payments Payment Solutions Scale 52

OpenView Labs

SEPTEMBER 23, 2019

Particularly within the SaaS world, where the allure of high returns in the private markets has resulted in all-time funding records due to the rise of the megaround , Softbank’s Vision Fund , and more. The most popular visualization of SaaS valuation data has revenue multiple plotted against growth (see the left-hand chart below).

Benchmarks 40

Benchmarks Data SaaS Scale 40

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

OpenView Labs

FEBRUARY 4, 2020

Segment CEO and Co-founder Peter Reinhardt was recently reflecting on what were his top lessons learned from changing packages and pricing. While Segment may be an extreme case, the business is far from unique in learning that it was leaving money on the table due to its pricing. Pricing Is Your Best Shot at Growing 25% Faster.

Pricing 60

Pricing Scale Technical Review Software Review 60

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

Unbounce

JUNE 23, 2020

The problem is the software that makes them possible is usually priced for huge companies with deep pockets. And so you hope that companies price their software in a way that both makes it accessible and reflects the actual value you’re getting back. Plus the SaaS has a huge incentive to increase the value that you get.

Pricing 120

Pricing Scale Machine Learning Artificial Intelligence 120

ChurnZero

JANUARY 11, 2024

In other words, we asked more complicated and probing questions in each subsequent year to reveal better benchmarks. The central bank continued its fight against price inflation and raised overnight interest rates several times. Russia invaded Ukraine which brought yet another increase in energy and food prices. of revenue.

Headcount 52

Headcount SaaS Leadership Benchmarks 52

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 52

Pricing SaaS Payments Payments Payment Features 52

CustomerSuccessBox

FEBRUARY 17, 2022

Unfortunately, many SaaS companies overlook this and focus on generating new leads. 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. NDR Benchmarks, Formula & more appeared first on.

Benchmarks 52

Benchmarks Retention Churn Subscription 52

User Pilot

MARCH 26, 2024

To make your life a little bit easier and help you choose the best digital analytics tool for your SaaS, we’ve produced a guide of 15 excellent analytics platforms available on the market in 2024. Pricing Here's an overview of Userpilot's pricing plans: Starter. Pricing Amplitude offers three paid plans.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

User Pilot

MARCH 26, 2024

To make your life a little bit easier and help you choose the best digital analytics tool for your SaaS, we’ve produced a guide of 15 excellent analytics platforms available on the market in 2024. Pricing Here's an overview of Userpilot's pricing plans: Starter. Pricing Amplitude offers three paid plans.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52

User Pilot

MARCH 26, 2024

To make your life a little bit easier and help you choose the best digital analytics tool for your SaaS, we’ve produced a guide of 15 excellent analytics platforms available on the market in 2024. Pricing Here's an overview of Userpilot's pricing plans: Starter. Pricing Amplitude offers three paid plans.

Artificial Intelligence 52

Artificial Intelligence SaaS Payments Payment Solutions Payment Services 52