SaaStr

JANUARY 21, 2022

You might feel confused about where to begin, how to scale up, which mistakes you should avoid, and things you should consider before expanding. Now, let’s look at ten learnings that Dorian gathered while scaling Grammarly from a Consumer to an Enterprise brand with B2B offerings. Enter your email below for the latest SaaStr updates.

Scale 205

Scale SMB Enterprise Sales Hiring 205

Totango

MARCH 21, 2023

At the Customer Success Festival in New York City, Katie Yagodnik, director of CS operations and digital programs at Totango, and Nick Chang, VP of global CS at Aryaka, explored how operations teams can be leveraged to drive revenue growth in a fireside chat about “Effectively scaling your CS operation.” Curious about where we’re going next?

Scale 81

Scale Scaling Customer Success Benchmarks 81

Tom Tunguz

JUNE 25, 2020

It contains data on go to market team structure, performance by sales function, marketing spend benchmarks, and customer success priorities. We’ve endeavored to include as much data as possible to help companies benchmark themselves relative to others. The presentation is embedded below. Just pick a metric.

Scale 364

Scale Headcount Benchmarks Retention 364

Tom Tunguz

APRIL 29, 2019

Slack’s sales efficiency exceeds 111%, which is sensational. One dollar of sales and marketing spend today generates $1.11 Zoom’s sales efficiency is at 180%. The first is the sales efficiency, mentioned above. Slack’s business is a marvel of scale, expansion and growth. in gross profit next year.

Benchmarks 269

Benchmarks Metrics Scale Revenue 269

Chart Mogul

SEPTEMBER 8, 2021

This week I talk to Thomas Smale of the M&A consulting firm FE International about what it takes to scale companies at any stage of growth and get them acquired. We discuss company benchmarks and how he helps companies decide on which areas of the business to focus on and when’s best to bring in outside help.

Scale 96

Scale Acquisition Scaling Sales Hiring 96

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. Announcements of several blockbuster acquisitions, most notably from Adobe acquiring Figma, which was the highest valuation multiple offered in an acquisition for any software company at scale.

Cloud 244

Cloud Payments Software Review Payment Solutions 244

Tom Tunguz

AUGUST 26, 2019

Recently, we’ve seen a series of product-driven companies building huge customer bases with tremendous account expansion and terrific sales efficiency. DataDog is 2x the scale of New Relic but growing just as fast. An amazing feat to be growing fast at scale and profitable. DataDog is no exception.

Metrics 189

Metrics Benchmarks Scale User Experience 189

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

SaaSOptics

AUGUST 11, 2022

Raise, Sell, Merge, or Scale? In this article, we’ll help you determine the next best step for your business and provide guidance on whether you should raise, sell, merge, or scale your SaaS. The acquirer gets an opportunity to grow market share without doing the heavy lifting of growing and scaling an existing business.

Scale 97

Scale Scaling Technical Review Venture Capital 97

InsightSquared

MAY 7, 2019

Sales is the Growth Engine. Sales is the engine driving SaaS company value. Top and bottom line performance are totally dependent on the sales organization and its performance. And sales expense is typically the largest expense item on a growth SaaS company’s income statement. Typical SaaS Sales Metrics.

Scale 102

Scale Sales Hiring Metrics Sales 102

SaaStr

DECEMBER 2, 2021

25 SaaStr 214: New Relic CRO Erica Schultz on What It Takes To Successfully Scale Into Enterprise & How The Very Best Reps Build Relationships With Their Leads. #24 A lot has changed since 2016, but SaaStr is still bringing you the best advice from industry leaders, and we don’t plan on stopping. Today, we’ll dive into 25-13.

Scale 240

Scale Benchmarks Enterprise Leadership 240

Payrix

MAY 14, 2024

Adam Tesan, CRO at Worldpay for Platforms, is a seasoned executive leader with decades of experience in sales, marketing, and revenue in the software space. During his tenure, Chargebee experienced high growth, scaling from processing about $3 billion in revenue to $13-14 billion. So pretty significant scale.

Payments 147

Payments Payment Services Payment Solutions SaaS Payments 147

OpenView Labs

DECEMBER 14, 2021

OpenView’s 2021 Finance and Operating Benchmarks Report highlights a framework that can unwind this death by a thousand cuts analysis to start with a simple question: Should we allocate resources to R&D (product) or to sales & marketing (sales)? OpEx Spend Benchmarks: Product or Sales? .

Scale 80

Scale Sales Benchmarks Finance 80

Point Nine Land

OCTOBER 23, 2023

P9 Panel on Hiring Sales Leaders — Founders Summit 2023 “You are going to fire your first sales manager!” — A lesson too many founders learn the hard way. The Founder isn’t willing to be the first salesperson Many of the best founders we work with don’t have a sales background and are either product or engineering focused.

Sales Hiring 125

Sales Hiring Scale Technical Advisors Technical Cofounder 125

Andreessen Horowitz

OCTOBER 16, 2023

With massive annual technology budgets and scaled distribution, the largest FIs are the ideal end-buyers. However, a fear of long sales cycles, heavy compliance requirements, and opaque organizational structures preclude many early stage founders from pursuing this go-to-market channel.

Scale 111

Scale Software Sales Generative AI 111

OPEXEngine

JUNE 29, 2020

Benchmark the health of your SaaS company, and. Think of it this way: most SaaS companies have high customer acquisition costs, as you have to invest heavily in sales and marketing in order to realize high growth. The post Rule of 40: How to benchmark your SaaS growth appeared first on OPEXEngine. Sources: [link].

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

Chart Mogul

JUNE 1, 2023

Are you ready to implement strategies to scale rapidly? And as businesses reach scale ($15-30m ARR), the top quartile customer retention rate further improves to 84%. Make sure that your sales, marketing, and customer success team are aligned and working together to achieve a great experience for your customers.

Retention 90

Retention Metrics Benchmarks SaaS 90

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. Sales commission as % of ACV 9%.

Benchmarks 107

Benchmarks Startup Sales Hiring Compensation 107

OPEXEngine

FEBRUARY 23, 2022

Like the benchmarking of any key metric, you will drive operational efficiency and better use of your resources, when you see the variance between your company and your peers at the same stage and with a similar business model. Quarter 2 revenues minus Quarter 1 revenues) ÷ Quarter 1 Sales and Marketing Expense. Magic Number Defined.

Scale 52

Scale Benchmarks Marketing Sales 52

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. High-growth companies scale their teams very quickly. It indicates that the company is achieving economies of scale. over the five year period.

Benchmarks 100

Benchmarks Revenue Scale Metrics 100

Sales Hacker

AUGUST 11, 2023

Before we get into it, curious to hear your thoughts on last weeks Sales Hacker/GTMnow announcement ?! This week I sat down and interview the VP of Sales at Crunchbase , Ang McManamon. Ang shares her 5 P’s of Sales Leadership: Professionalism Preparation Process Performance Play More on these below. Grit is a must-have.

Scale 65

Scale Leadership Sales Hiring Sales 65

SaaStr

DECEMBER 3, 2021

#12 SaaStr 196: Stripe COO Claire Hughes Johnson on How The Best Leaders Inspire with Confidence and Stability, The Key To Successful Decision-Making & How To Hire Quality Teams At Scale. #11 11 SaaStr 309: David Skok on The 9 Stage Model To Get A B2B Company To Get Repeatable, Scalable & Profitable Growth. #10 1 SaaStr 221: HBS Sr.

Scale 200

Scale Sales Hiring SMB Benchmarks 200

SaaStr

NOVEMBER 5, 2021

On the one hand, you need a shorthand for your sales and marketing efficiency — and that’s Magic Number. Magic Number is your growth in ARR over a quarter divided by the sales and marketing spend in the prior quarter. limited to no sales expense). And IVP has published some data to help you benchmark it.

Scale 259

Scale SaaS Acquisition Benchmarks 259

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. net retention and CAC payback).

Cloud 177

Cloud Software Azure AWS 177

Chart Mogul

SEPTEMBER 8, 2021

This week I talk to Thomas Smale of the M&A consulting firm FE International about what it takes to scale companies at any stage of growth and get them acquired. We discuss company benchmarks and how he helps companies decide on which areas of the business to focus on and when’s best to bring in outside help.

Scale 52

Scale Acquisition Scaling Sales Hiring 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?” Companies were (surprisingly) efficient with their sales and marketing dollars. ” In short: It made SaaS companies even stronger.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

Sales Hacker

AUGUST 30, 2021

Businesses have been worshipping big data for some years already, but unforeseen events in 2020 and 2021 made it clear that revenue rests on sales data. The pandemic turned markets and sales expectations upside down, leaving only 27% of CEOs feeling confident they’ll see revenue growth in the next 12 months.

Scale 91

Scale Data Sales Benchmarks 91

Tom Tunguz

DECEMBER 16, 2013

One way of measuring the efficiency of a company’s revenue model is to benchmark revenue per employee. In the scatterplot above, which compares revenue per employee to revenues (in log10 scale), the outliers pop out. Google and Facebook, the two most efficient companies, generate $1M per revenue per employee per year.

Benchmarks 100

Benchmarks Revenue Scale Sales Hiring 100

Mucker Capital

OCTOBER 10, 2023

Sales development is a nuanced blend of art and science, requiring a delicate balance for its effective implementation within a company. Drawing from substantial experience, Sally Duby from The Bridge Group provides valuable insights into the intricate realm of sales development. Sally's wisdom sheds light on this dilemma.

Scale 52

Scale Sales Hiring Outsourced Development Development 52

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 the business has scaled, MobileIron’s gross margin is increasing by 16% per year, a dramatic climb.

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

OpenView Labs

MARCH 8, 2021

B2B sales involves one business selling its product to another business. Those with experience in both B2B and B2C sales know that B2B is a lot tougher—the deals are bigger, there’s often more than one decision-maker, and the competition is intense. What Interviewing 600+ Sales Reps Taught Me About Team Building.

Sales Hiring 80

Sales Hiring Scale Sales Recruiting B2B 80

OpenView Labs

SEPTEMBER 23, 2019

Enduring business (think Cisco, GE, Walmart) must demonstrate the ability to repeatedly generate predictable earnings – turning the massive revenue scale they’ve achieved into shareholder returns (via share price expansion and dividends). Benchmarks are the only check on whether or not a business is generating efficient growth.

Benchmarks 40

Benchmarks Data SaaS Scale 40

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. While SaaS is an amazingly transparent community with abundant benchmarking resources, there are much fewer publicly available studies that allow an analysis of the underlying drivers of “Rule of 40.”

SaaS 263

SaaS Technical Review Benchmarks Azure 263

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. net retention and CAC payback).

Cloud 177

Cloud Software Benchmarks Retention 177

Tom Tunguz

SEPTEMBER 21, 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. The company went public in 2013 and we’ll use data from their S-1 through 2013 to benchmark the business.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

Tom Tunguz

SEPTEMBER 2, 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. LOGM, TLEO, LNKD and ZEN achieved the same scale of revenue at the same time, relatively speaking. A sales efficiency of 0.8

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

User Pilot

JUNE 6, 2024

Use analytics tools for tracking and setting benchmarks and goals based on industry standards. To measure customer retention effectively, you need to choose the right metrics to track, set up a system to monitor them and establish your benchmarks and goals. After setting up your monitoring system, establish benchmarks and goals.

Retention 52

Retention Metrics Customer Lifetime Value Scale 52