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There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. Today, we capture on average approximately 1% of our customers’ GTV as revenue from their subscription to and current usage of our products.
Dear SaaStr: What Are The Rough Benchmarks for Raising a Series A? When it comes to raising a Series A, the benchmarks can vary depending on your market, growth trajectory, and the type of B2B business you’re building. If you’re selling to mid-market or enterprise, negative churn (expansion revenue outpacing churn) is a strong signal.
There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. Benchmark Data The data shown below depicts how the Figma data compares to the operating metrics of current public SaaS businesses.
Revenue Growth : $289.2M (2019) → $400.3M (2020) IPO Valuation : $8.3 billion Business : Construction management software Procore demonstrated steady growth with revenue increasing from $289.2 For the 12 months ending July 31, 2024, ServiceTitan reported $685M in revenue, reflecting year-over-year growth of 24%.
Managing revenue operations (RevOps) in a SaaS company is all about aligning sales, marketing, and customer success to drive growth efficiently. Build a single source of truth for all revenue-related metrics—pipeline, churn, CAC, LTV, NRR, etc. Focus on Net Revenue Retention (NRR) NRR is the most important metric in SaaS.
Gong has its 2025 State of Revenue out. That ties to our overall rough sales cycle data here: Dear SaaStr: What’s a Good Benchmark for B2B Sales Cycles? You can grab it here. In general, the report ties to what were seeing everywhere in SaaS. Were ending the year in general with stronger growth that the prior year.
Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Q1 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q1 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter.
It tells them how much of your revenue base you’re retaining, excluding any upsells or expansions. Here’s the best-practice way to calculate it: Start with your Beginning ARR (Annual Recurring Revenue) : This is the ARR from your existing customers at the start of the period you’re measuring. moved to a lower-tier plan).
5 Interesting Learnings: The Core 5: Revenue & Growth Metrics 1. These 4,870 customers likely represent 70%+ of revenue despite being <25% of total customers. International Revenue as a Growth Vector Indicator The Numbers : International revenue represents ~20% of total ($141M of $688M in Q1) The Learning : At $2.6B
Former Head of Revenue at BILL and HubSpot Americas leader Michelle Benfer recently joined us on a SaaStr Workshop Wednesday share her insights on one of the most critical roles in any SaaS organization: the frontline sales manager. Driving revenue through acquisition, expansion, and retention. Shaping and maintaining company culture.
A good benchmark is for each CSM to manage $1M to $2M in ARR, depending on your growth stage and resources. You can also see that start-ups overall spend about 7% on revenue on customer success, so that ties closer to $2m ARR per customer success rep: If you’re targeting $1M in ARR per CSM, that’s **50 customers** at $20,000 ACV.
Learning #2: Size Matters More Than You Think – Your Growth Benchmarks Are Completely Wrong This might be the most important insight in the entire report: A 25% growth rate means completely different things depending on your ARR. The takeaway: Stop chasing the unsustainable growth rates of 2021-2022. They’ll be the cautionary tales.
Here’s what Figma looks like today: 📊 Core Metrics $821M LTM revenue (46% YoY growth) $913M ARR at Q1’2025 91% gross margins (best-in-class) 18% non-GAAP operating margin (profitable!) Revenue Per Customer The Data : 76% of customers use 2+ Figma products, generating 132% net dollar retention. Build workflow-adjacent.
What “Working” Means in the Era of AI Apps: The New Enterprise Benchmarks That Matter One of the most common refrains in the generative AI era is that “startups are growing faster than ever” — often with fewer resources. ARR by month 12 — more than double the old “best in class” benchmark of $1M.
Quotas should now be tied to historical performance and benchmarks. You might also shift from focusing solely on revenue to incorporating metrics like logo acquisition or customer retention. As you scale, shift to quality metrics like closed-won revenue and opportunity-to-close percentages. And Their Quota.
This means 50% of their total compensation is a base salary, and the other 50% is variable, tied to hitting specific revenue or ARR targets. Variable Compensation (50% of OTE) : This is tied to performance, usually based on achieving the company’s ARR or revenue goals. For example, if the OTE is $300K, the base salary would be $150K.
” – Founders love this one because it provides real-world benchmarks for growth and burn rates, which are often misunderstood. “How Revenue Multiples Really Fall After Each VC Round.” Its a critical hire, and this guide helps avoid costly mistakes. “The Era of the SaaS Decacorn is Here.”
This represents a fundamental shift from experimental dollars to recurring revenue opportunity. The Evaluation Reality : While internal benchmarks and golden datasets remain critical, enterprises increasingly reference external evaluations as their first filter, similar to how they use Gartner for traditional software purchases.
The market is once again rewarding recurring revenue models and predictable growth patterns. Focus on the fundamentals that make companies IPO-ready: predictable revenue growth, expanding margins, and clear path to profitability. Companies with real revenue, real growth, and real paths to profitability are getting rewarded.
For example, if you’re assuming a 20% conversion rate, share data from your early sales efforts or industry benchmarks to justify it. Tie Projections to Funding Needs Your revenue projections should align with your funding ask. Be upfront about these assumptions and explain why they’re reasonable.
Here’s a deeper dive into SaaStr Annual and why it’s considered the top SaaS event: Core Elements: Takes place in the San Francisco Bay Area (usually Silicon Valley) Features over 300 speakers across multiple tracks Focuses exclusively on SaaS metrics, growth strategies, and operational excellence Typically runs for 3 days with pre and (..)
As Christina puts it: “If you can give people credit — which really means revenue — for showing off all the good security work they’ve done, they will do more good security work.” “We were operating at basically cash flow break-even,” Christina recalls. The lesson? “I didn’t want to pitch Vanta then.
For context, the Rule of 40 is a benchmark for SaaS companies that adds revenue growth rate and profit margin, with 40% considered healthy. With 39% revenue growth and 44% adjusted operating margin, Palantir is doubling the benchmark threshold. They’ve found both epic growth and epic profitability. billion and $1.8
200+ dedicated workshops and braindates with the best in SaaS, Cloud and AI, from intimate small sessions to 20-50 person workshops from the best Our CRO + CEO Poker Night where we bring 200 top revenue leaders together with CEOs and founders of B2B / AI companies attending Our 4th annual CMO Summit for top CMOs and the CEOs that want to meet them!
Financial Highlights Revenue : $282M in Q1 FY25, up 30% YoY (!) Global Expansion Shows Significant Runway Potential While North America represents 54% of revenue, Monday.com is showing strong global penetration with significant presence in Europe (27%), APAC (8%), Latin America (6%), and MEA (5%).
With 10+ years as a CMO at companies ranging from $1M to $1B in revenue, another 10+ years as CEO of companies in the $0-$100M range, and extensive experience as an independent director on startup boards, Dave offers a 360-degree perspective on marketing’s role in SaaS success. But there’s a better way.
The bar for exit outcomes keeps rising : With the IPO threshold now effectively requiring 50% growth at $500M+ in revenue, the path to venture returns has become more demanding. Most companies that are just below the growth threshold can’t simply spend their way to higher growth rates.
When AI can handle customer onboarding, support, and success functions that traditionally required human intervention, you can scale revenue without proportionally scaling teams. Want to benchmark your own GTM efficiency against these AI-native leaders? At least right now.
We’ve pulled together what we think are the best 2025 customer revenue conferences so you can prioritize your time, budget, and air miles. For CS teams looking to gain new perspectives on AI, improve the customer experience, and drive sustainable revenue, INBOUND delivers big on cross-functional strategy. This year’s focus?
The real key to sustainable growth and increased revenue lies in maximizing payment attachment – the adoption and usage of integrated payments by your existing customer base. ” Jeremy Krahl elaborated on its impact, cutting straight to the chase: “The answer is revenue typically.”
You have to reconcile different currencies, deal with fluctuating conversion rates, and convert annual payments into monthly revenue. Using ChartMogul Benchmarks , Patrick and the rest of the leadership team saw the growth slowdown was affecting the entire SaaS industry, and could compare their performance to other similar startups.
While reactive “saves” will always matter, they’re no longer enough when your CFO wants revenue predictability and AI-powered competitors are reaching your customers faster than ever. Target the right customers and it will be easier to build the right revenue base. And if you’re not mapping the journey?
Leading product-led growth companies are growing 50% year over year, far faster than traditional SaaS companies (21%) according to recent benchmarks. Lenny also provides a few benchmarks on standard retention rates. Generally, 5% of all freemium sign ups convert to paid on average based on OpenView’s benchmarks.
Hello and welcome to The GTM Newsletter by GTMnow – read by 50,000+ revenue professionals weekly to stay up-to-date and scale their companies and careers. According to HighAlpha’s 2024 SaaS Benchmarks Report , 76% of founders are most concerned about go-to-market execution. The future is so much bigger than SaaS for SaaS.
Their performance benchmarks showing 10x query throughput compared to self-hosted options were eye-opening. What’s particularly notable is how many are generating meaningful revenue early. The Numbers : Processing 1.2B vector queries daily. 230+ enterprise customers including three Fortune 50 companies. 99.999% availability SLA.
Hello and welcome to The GTM Newsletter by GTMnow – read by 50,000+ revenue professionals weekly to stay up-to-date and scale their companies and careers. Here’s how to drive early value effectively: In-product value Measure TTV : Set a quantifiable benchmark for how long it should take a new user to reach their first “aha moment.”
Budget-friendly alternatives Run a one-off digital-PR sprint tied to fresh industry data Hire a part-time content marketer to create link-worthy resources in-house Bottom line: treat this tier as a polish benchmark, not the default path. Most lean SaaS firms earn stronger dollar-for-dollar returns from the growth package above.
billion in annual recurring revenue. Through strategic momentum, customer-driven innovation, and an adaptable yet focused approach to scaling, they are setting benchmarks not only for growth but for tangible impact. So how did it garner success so quickly?
The Infrastructure Math Is Unprecedented The Capital Intensity Is Off The Charts: Big Six tech CapEx: $212B annually (63% YoY growth) Microsoft AI business: $13B run-rate (175% YoY growth) NVIDIA data center revenue: $39B quarterly (78% YoY growth) Amazon AWS CapEx as % of revenue: 49% (vs. revenue (33x multiple) Anthropic: $61.5B
Nvidia Rubin & Blackwell Ultra chips announced at GTC, targeting agentic AI and robotics; data center revenue projected to reach $1 trillion by 2028. Chinese LLMs have rapidly matched Western peers on key benchmarks. Cohere posted $30 M revenue in 2024, projecting $70 M in 2025, valued at $5.5 B.
If you’re selling AI-powered software, lead with impact: show time savings, cost reduction, or revenue lift. Emergence has released the second edition of Beyond Benchmarks , sharing fresh data on how 560+ B2B SaaS companies are navigating disruption. AI may be growing faster than any prior tech cycle, but monetization is murky.
Set core goals and bet on S-Curves Owners 2025 plan revolves around two key elements: Core Initiatives: A set of seven essential strategies that, if executed well, will drive the planned revenue growth (for Owner in 2025, 2x revenue growth). Plan for attrition talent planning is just as critical as revenue planning.
The Great SDR Downsizing: 36% of B2B Companies Cut Sales Development Teams in 2025 Based on data from Emergence Capital’s “Beyond Benchmarks” report surveying 560+ venture-backed B2B software companies The whispers have been growing louder in SaaS corridors: “Is this the end of the SDR?”
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