SaaStr

NOVEMBER 30, 2023

The Early Stage — $0 to $20M ARR The early stage is crucial for GTM. According to ICONIQ’s data, many successful companies hit a growth plateau at around $15M ARR. Because founder-led sales worked really well for most of the early stages, but you eventually start running out of juice around $15M ARR. What does that mean?

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SaaStr

MARCH 25, 2021

It’s much smaller than Shopify, at $170m ARR vs $3B+ ARR, but it’s still plenty big for us to learn a lot from this big but not #1 player in the market. How can you win vs. the bigger guys? Even with a much bigger competitor, BigCommerce is growing an impressive 41% at $170m in ARR and a $4B market cap!

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SaaStr

FEBRUARY 7, 2021

When you go to hire a VP of Sales or even your first sales rep, one of the top qualifying questions I always recommend asking is if they have experience at your deal size, at your ACV (Annual Contact Value). There are very different cadences, and different skills, in closing $100 vs $1,000 vs $10,000 vs $100,000 vs $1,000,000 deals.

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SaaStr

FEBRUARY 25, 2021

First, let’s look at 4 stages of ARR and the 4 types of VP Sales that match those stages. But if you do this, you’re going to need to bring in a real VP Sales pretty quickly, as soon as you hit $1-$2m in ARR probably. This is what every SaaS company post-Initial Traction needs, like a VP of Demand Gen Marketing (vs.

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SaaStr

FEBRUARY 20, 2021

250M+ ACV deals grown 3x, $1M deals up 50%. million customers. $30B in backlog on $13B in ARR. You can see that here vividly, with Google Cloud having a $30B backlog of signed revenue on top of its $13B in ARR. AWS vs. Azure vs. Google Cloud is one of the greatest case studies of all time.

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SaaStr

MARCH 31, 2021

UiPath uses the term “ARR” loosely. ARR uses to mean true recurring revenues. But since the effective NRR is still 145%, ARR-style metrics still work. 89 $1m+ ACV customers — up from 21 in 2019. is only 36% of their ARR. Today, it’s definition has … loosened. ” #5.

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Outsourcing Services Outsourced Development Payment Features Cloud 362

CloseSaaS

NOVEMBER 29, 2022

We’ve talked in other posts about the importance of metrics in business growth, sales management, and overall success, so if you follow the Close blog, you may already know what Annual Recurring Revenue (ARR) and Annual Contract Value (ACV) are. Spoiler: we’re gonna review them in-depth below!) Clearly,

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SaaStr

JANUARY 12, 2021

We last checked in at Xero when it crossed $650m in ARR. Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! has since grown substantially to $200m ARR , but they got all the way to $500m+ ARR selling mainly in Australia+NZ. And the U.K.

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SaaStr

FEBRUARY 19, 2021

Together they discuss: why partners are a moat, why HubSpot avoided going more enterprise, building vs. buying, and building an eco-system. And our early customers wanted us to do all like, ‘Can you write our blogs for us? ” The post Brian Halligan, CEO and Co-Founder at HubSpot: The Secrets to $1B ARR … And Beyond!

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SaaStr

FEBRUARY 12, 2022

Lapeyre shares advice on how to use data to acquire more customers and increase ARR. . Within each segment, they split up buckets of data in the following categories: Companies, Deal Creation, Close Rate, ACV, Market Share (which measures Gorias customer vs. competitor market share) and NRR. Build A Map.

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SaaStr

FEBRUARY 15, 2022

E.g., Sales +Marketing Expenses < First Year ACV = Success ? One you may not have heard but it’s a good one — is Hire One Customer Success Manager for every $2m in ARR. >> In fact, hire one for the large accounts (say $50-$100k+ ARR) as soon as you have Just Two Big Customers. . >>

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SaaStr

NOVEMBER 8, 2021

Let’s assume you have a $2,000/month product (which is a healthy if high ACV for an early-stage PLG GTM motion) and need to grow your ARR by $600,000 to hit your plan, which translates to needing 25 new paid accounts. That math can be daunting. That requires 3,125 top-of-the-funnel “visitors.”

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SaaStr

MAY 3, 2021

Something new to boost your ACV and TCV. At least after $1m-$2m ARR or so. From $1m to $10m ARR or so, as you build your first management team: You shouldn’t be the VP of Sales Anymore As You Scale. And importantly, you need to spend more time with your existing customers (vs. At least on the big customers.

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SaaStr

JUNE 12, 2020

Yes, Veeva has a very high ACV, with prepaid contracts. The same with Qualtrics vs Medallia. We got to cash-flow positive bu $4m-$5m in ARR growing > 100% YoY with a sales-driven model. Yes, Mailchimp will get to $1b in ARR without raising any money. Yet Box needed $250m? Both sell to the Enterprise. So it’s not that.

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SaaStr

FEBRUARY 24, 2021

On lead poor vs lead rich sales environments … And how to get more revenue per lead pic.twitter.com/DpWU1RjdMV. So last month, two companies I’ve invested in: both crossed $5m in ARR. both also basically have the same ACV (~$50k). The post Lead Rich vs. Lead Poor Environments appeared first on SaaStr.

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SaaStr

MARCH 2, 2021

In SaaS companies in the very wide band from ~$1m to $40m ARR or so, the debate over Quarterly vs. Monthly Quotas comes up all the time. The larger your ACV, the more extreme the ratio. When you are at $100m ARR, you’re gonna be stuck with Quarterly Goals and Quotas unless you have a hyper-transactional model.

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SaaStr

DECEMBER 5, 2019

Although most of us aren’t quite approaching $1b in ARR, we can still learn from the leaders. That puts them at a $700m+ ARR run rate, with $1b ARR coming up in calendar 2020. But its customers > $100k in ARR increased by 67%. 50+ paid customers with $1m+ ACV. 5 Interesting Learnings From Slack.

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SaaStr

DECEMBER 29, 2019

But if your customers last 10 years, and buy more from you each year … I.e. if a $100k ACV deal you close today, over 10 years, ends up being $2m in total revenue … what can you spend to acquire that customer? A lot more than say 20% of first year ACV. Overdeliver vs. their expectations. Really, quite a lot.

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SaaStr

FEBRUARY 1, 2021

Maybe that’s fine if you’re at $5m ARR growing 20% MoM and just raised $20 million. Again, a hiring paradox What you really want is someone that has (x) built a successful team that (y) wants to do that all over again, (z) is willing to start again at your ARR level, and (aa) has a proven track record in SaaS.

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SaaStr

FEBRUARY 28, 2021

Recently, I caught up with two great entrepreneurs/CEOs, both doing a few million in ARR and growing quickly. But once you are at even $1m in ARR, you’ll need to make a primary bet. 5k ACV is fine. $10-15k You only need 1,000 of them then to get to $100m in ARR, after all. Doing well. 10-15k maybe. For a tool.

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SaaStr

OCTOBER 30, 2021

We worked in a small office above a smog shop on 4th Street, had a handful of customers, and 100k in ARR closed by our CEO. What is your ACV? Monthly Quota / ACV) / close rate = Opportunities needed for quota. To move forward, we needed to find ways to adjust other numbers like ACV, OTE, or quota attainment.

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SaaStr

JANUARY 24, 2022

But it was on the margin — the ACVs were low, and the CAC was high. Was it misunderstanding bookings vs. ARR vs. GAAP revenue, was that the issue? But in SaaS, once you even get to about $2m ARR — it’s time to get your finances in order. And then — he sent me his financials. Cash is king.

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SaaStr

JANUARY 7, 2021

SaaStr 298: Podium CEO Eric Rea on Scaling Outside Silicon Valley: Going from $0 to $60M ARR in 4 Years. SaaStr 321: Front CMO Anthony Kennada on Adapting Marketing Playbooks To Changing ACV’s and Sales Cycles, The Right Way To Think About Brand Marketing and How To Fundamentally Build a Challenger Brand .

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SaaStr

APRIL 10, 2024

Billion in ARR. It trades at just 3x ARR. Net of cash, it trades at just over 2x ARR. Many in SaaS have found a way to drive their ACV and ARPU up over the past 18-24 months with price increases, more products, and more. Billion in ARR appeared first on SaaStr. It wants efficient growth. Billion today.

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OpenView Labs

MARCH 30, 2020

Before you know it, you can easily be submersed in wave upon wave of metrics and corresponding acronyms—customer acquisition cost (CAC), annual recurring revenue (ARR), annual contract value (ACV) and lifetime value (LTV), just to name a few. ARR, and the annual growth of it, is another classic. No pressure. Annual Growth Rate.

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Chart Mogul

SEPTEMBER 15, 2023

For years we have been reading and hand-picking the best SaaS blog posts to share with 24K+ SaaS Roundup subscribers. Subscriber or not, anyone who wants to increase their SaaS knowledge will benefit by reading the … For years we have been reading and hand-picking the best SaaS blog posts to share with 24K+ SaaS Roundup subscribers.

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SaaStr

FEBRUARY 6, 2024

” What’s ‘good vs. bad’ NRR? One way people answer this question is as a percentage of ARR as shown in Nick’s chart above. On the low end, is typically to see companies under $25K ACV have a couple of hundred accounts per person, typically quite automated. What’s Good Net Revenue Retention?

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SaaStr

FEBRUARY 11, 2021

Before we get there, though, let’s outline in order of importance The Top 5 Things a Great VP of Sales Actually Does at a SaaS Company from say $500k in ARR to $20m+ ARR: 1. Once you’re past $20m or so in ARR, Strategy passes Tactics and goes higher on the list — once the VP Sales has a strong group of lieutenants/managers (e.g.,

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OpenView Labs

SEPTEMBER 24, 2020

Most SaaS companies don’t hire a dedicated pricing strategist until they reach $50M ARR. I wound up receiving a ton of brilliant responses, so I’ve turned the thread into this blog post. Average annual contract value (ACV) over time. Retention rates by ACV and by plan. If you’d like to join the conversation, jump in here.

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SaaStr

NOVEMBER 21, 2020

How does Rob think about the bundled vs unbundled thesis within SaaS? How does Rob think about usage vs seat-based pricing in SaaS? You look at the forward-looking ARR multiples on the stock price, and they were a lot lower back then. When is it right for SaaS companies to turn down potential customers?

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SmartKarrot

MARCH 26, 2021

When it comes to measuring the efficacy of your marketing and sales teams, Account Contract Value (ACV) is an unmissable metric that aids in assessing this. Here in this blog, we will cover everything you need to know about Annual Contract Value in detail. How to calculate ACV? ACV vs. ARR How to increase ACV?

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SaaStr

MARCH 1, 2024

TJ Nahigian, co-founder and Managing Partner of Base10 Partners, and Luci Fonseca, Partner, deep dive into the current GenAI landscape, incumbents vs. startups, and the six questions founders should ask themselves to drive value from GenAI. But business stalled out at around $10M ARR. ARPU, ACV, and LTV are increasing.

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