SaaStr

JULY 23, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: The Cold Hard Truths About SaaS in 2023 with Jason Lemkin The Cold Hard Truths About SaaS in 2023 with Jason Lemkin Part 2 Want To Steal a Customer from the Competition? How to Grow Revenue Faster in the Second Half of 2023 with Founders Fund 4.

Retention 215

Retention Revenue SaaS Customer Success 215

SaaStr

JULY 16, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: Why Booths Work at Top Industry Events. SaaStr 673: How To Boost Your Net Retention Revenue (NRR) to Over 140% with Insider’s CEO and CMO   3. But You Have to Put In The Effort. Selling Your Startup?

Startup 161

Startup Retention Software Strategy 161

SaaStr

APRIL 19, 2024

EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. You Want One-Third of Your Revenue Outside the U.S.

Engineering 250

Engineering Business Model Pricing Scaling 250

SaaStr

NOVEMBER 21, 2020

At least 100% net negative churn (i.e., 119% net revenue retention. Asana, 130% net revenue retention. Fastly, 130% net revenue retention. PagerDuty, 139% net revenue retention. Zoom, 140% net revenue retention. As It IPOs. As It IPOs.

Retention 334

Retention SMB SaaS Enterprise 334

SaaStr

JULY 9, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: 5 Interesting Learnings from MongoDB at $1.5 SaaStr 673: How To Boost Your Net Retention Revenue (NRR) to Over 140% with Insider’s CEO and CMO   3. SaaStr 672: Go to Market Strategies That Led To Divvy’s $2.5B

B2B 209

B2B Startup Retention Software 209

SaaStr

SEPTEMBER 2, 2023

. “Higher growth is generally associated with higher retention and vice versa. The higher a company’s retention, the easier it is to grow, as the company doesn’t have to replace as much lost revenue. T he impact of retention is also cumulative as it repeats and expands on itself year after year.

Startup 255

Startup SaaS SMB Banking 255

Valuize Consulting

DECEMBER 21, 2022

We’ve compiled our top 5 most-read customer success blog posts of the year that reflect the key priorities for the industry in 2022 and give us a glimpse into the trends that will be shaping the domain in 2023. In the recurring revenue world, the more your business grows and expands, the more churn you’ll experience. Read Article.

Customer Success 52

Customer Success Churn Subscription Payment Features 52

SaaStr

JANUARY 12, 2024

We still want to drive retention and growth and make money. No one would disagree that retention and expansion are important. Eventually, you can build a model to show you can create sustainable value in a company that’s not just based on a revenue multiple. The world has changed. There’s a lot of nuance. Never stop,” he said.

Sales Hiring 250

Sales Hiring Customer Success Scale AI 250

SaaStr

MARCH 27, 2024

Revenue Growth is Up Just 24%. HubSpot’s revenue growth of 24% (21% in constant currency) is basically equal to its net new customer count. Gross Retention in “The High 80s” So while NRR is down to about 100%, customers aren’t leaving. NRR Likely Down to Around 100%. GRR is more consistent.

Scale 245

Scale Cloud Scaling Pricing 245

SaaStr

SEPTEMBER 3, 2023

Recurring software revenue is now recognized as a great way to generate tons of cash for investors,” says Gerety. Do public markets understand recurring revenue and SaaS models?” Fast forward, and Box is over $1B in revenue. The magic of a SaaS model is: Very high logo retention. But that wasn’t always the case.

Sales Hiring 232

Sales Hiring Headcount Finance Technical Review 232

SaaStr

AUGUST 25, 2020

Q: What is more important, getting new customers or customer retention? It’s a trick question, of course — the crazy high net negative churn of top SaaS companies means that of course retention matters more than new customers. And yet … there’s no point in doing customer retention if you don’t have enough customers. ??.

Retention 290

Retention Scaling Churn Engineering 290

SaaStr

SEPTEMBER 19, 2022

In other words, customer success is any function or group creating conditions for future revenue. Annual contract value (ACV) builds companies, but net revenue retention sustains them. In that case, you need a function—customer success—that helps drive fast value and creates the conditions for net revenue.

Sales Hiring 243

Sales Hiring Customer Success Scaling Construction 243

SaaStr

OCTOBER 6, 2023

Net net, the leaders’ growth has plummeted by almost half. Still growing, but relying a lot on upsell and retention. And several of the high-fliers are growing faster than ever, over 100%. Still, averages are good to give us all a sense of overall “macro” impacts in SaaS. Here’s to an uptick in 2024!!

Cloud 208

Cloud Forecasting Retention SaaS 208

Valuize Consulting

DECEMBER 23, 2021

We’ve compiled our top 5 most-read CS & SaaS blog posts of the year that reflect the key priorities for the industry in 2021 and give us a glimpse into the trends that will be shaping CS in 2022. These 3 pillars are inextricably linked and, together, they form a powerful trifecta that drives Net Dollar Retention.

Customer Success 52

Customer Success Scale Leadership Retention 52

SaaStr

DECEMBER 21, 2023

Software Revenue Multiples On the chart below, the darker blue line shows the median revenue multiple for 100 software companies. For those unfamiliar with revenue multiples, it’s a valuation methodology for comparing relative valuations of businesses. No crazy spikes like in 2020-2021 for revenue multiples.

SaaS 253

SaaS Software Metrics Revenue 253

SaaStr

JANUARY 5, 2024

12,000 customers, very high net review retention (NRR) even with SMB customers. Why is Jason Worried for The First Time About SaaS: We are trading at 6x revenues in the public markets. Many will pull the chord and say, we have to do it. Who Will Be the First to Go Public: ServiceTitan. Growing 40-50% cashflow neutral.

SMB 302

SMB SaaS AI Software Review 302

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.

Scale 52

Scale Underperforming Technical Team Sales Hiring SaaS 52

SaaStr

MARCH 11, 2021

There are 3 general options: Your VP of Sales is responsible for net new revenue only. The VPS is responsible for closing $Xm in net new revenue this year, period. Post-sales, other than upsell which adds to net new revenue for this year, is someone else’s job. Maybe not. Where The Magic Is.

Sales Hiring 265

Sales Hiring Metrics Sales Churn 265

Totango

APRIL 9, 2024

Chris Dishman , SVP of Customer Success for Totango & Catalyst, hosted a roundtable discussion with industry leaders, including Rashmi Chari , Head of Global Customer Success for ThousandEyes, Kevin McIntyre , Chief Revenue Officer for Dealfront, and Madelyn DePrey , VP of Customer Success for Aircall.

Scale 106

Scale Sales Compensation Customer Success 106

SaaStr

AUGUST 7, 2023

ARR stands for Annualized Recurring Revenue, although its real-world definition has evolved over time. As you’ll learn further down in this article, ARR now means any type of software-related revenue with 100%+ Net Revenue Retention (NRR), even if it’s not truly recurring. The only thing that mattered was revenue.

Metrics 196

Metrics SaaS Sales Hiring Finance 196

SaaStr

MAY 30, 2022

Having high net revenue / dollar retention is the magic of SaaS. With 150% NRR, you can “hide” just 20%-30% or so new customer growth and it will be hard to see that slow growth in new customers in the revenue growth numbers. Second, measure logo retention as often as your do NRR. I see this so often.

Retention 272

Retention Customer Success Churn Trends 272

SaaStr

OCTOBER 10, 2023

On the flip side of revenue growth, you don’t want the bottom to fall out of your customer base. While it’s good to focus on hiring great salespeople to drive net new revenue growth, you also need to think about how to drive customer success and customer retention. Instead, it’s worthwhile to dually incentivize reps.

Scale 205

Scale Sales Hiring Scaling Sales 205

SaaStr

FEBRUARY 24, 2021

100% Client Spend Retention across 139,000 Customers. I would have expected lower than 100% net revenue retention from Upwork, given that much of the spend can be episodic. Net net, even from SMBs, Upwork manages 100% NRR, just as Shopify and Hubspot do from SMBs. 5 Interesting Learnings: 1.

Marketplace as a Service 266

Marketplace as a Service SMB Cloud Enterprise 266

SaaStr

NOVEMBER 26, 2019

10m ARR 100%+ growth 110%+ net revenue retention. And have 110%+ net retention. What matters is your momentum after $10m ARR, and not just the raw momentum (top line growth), but your momentum in retention. If you can retain 110% of your net revenue at $10m in ARR, growing 80%, you will get there.

Retention 223

Retention Innovation Revenue SaaS 223

SaaStr

FEBRUARY 24, 2023

Post $100M, they maintain a meaningful double-digit growth ($50M+ net new ARR). Adding to that, the net new ARR doesn’t flatline and increases by $15M-$20M every year. Their net dollar retention (NDR) is consistently above 120% post $10M ARR. When a company adds $10M net new ARR, it typically burns about $20M (2X).

Scale 210

Scale Sales Hiring Scaling Venture Capital 210

SaaStr

OCTOBER 29, 2020

And expansion revenue is higher than pre-Covid. 112% Net Revenue Retention. Zendesk doesn’t see the 140%+ net retention we see in the enterprise (big deal sizes) or in many B2D companies like Twilio, but it’s still above 110% for a business that is 60% Enterprise / 40% SMB. No excuses.

SMB 238

SMB Enterprise Retention Churn 238

SaaStr

APRIL 26, 2021

It should be net negative. You need to retain 118% of your revenue. We had about 3% a month churn here measured by revenue. These “credit” card deals had about 100% net revenue retention, for us, after churn. These deals had about 120% net revenue retention. And Zendesk.

Churn 263

Churn Retention Metrics B2B 263

SaaStr

DECEMBER 19, 2019

It will really, really show you how power laws kick in with recurring revenue models. International is 40% of revenues today and a growth accelerator. HubSpot has gone global with a fury since 2014, driving from 22% international revenue to 40%. But no big boost from net negative net churn. RingCentral ).

Outsourcing Services 325

Outsourcing Services Scale SMB Pricing 325

SaaStr

JUNE 10, 2020

And like retention, a marketing journey should also begin again once a customer closes. Customer Marketing is similar to Demand Gen, but with very different end goals — retention and net account growth. What % of your soft and hard budget for events goes to retention, and what % to lead gen? Or even longer.

Marketing 257

Marketing Retention Customer Success Content Marketing 257

SaaStr

OCTOBER 1, 2020

SaaStr speaker favorite Dave Kellogg recently shared with us his thoughts on why churn is dead, and what’s driving many companies to turn to net dollar retention. Revenue is a lagging indicator. There are four ways to calculate churn rates: Gross vs. Net. The net problem. #2 Why is this? ARR vs. ATR.

Churn 230

Churn Retention Acquisition Benchmarks 230

SaaStr

JUNE 23, 2020

It turns out, as long as you have positive revenue retention, and keep at it, you’ll do just fine over time. In fact, if you can get to 60% growth, maybe even just 50% growth at $10m ARR, and keep your net revenue retention over 120%-130% … you will get there. Look at Zoom, Slack, Datadog, UiPath etc.

Scaling 359

Scaling Retention Revenue SaaS 359

SaaStr

FEBRUARY 26, 2021

Tim Kopp, Terminus CEO and Executive Chairman, recently shared with the SaaStr community how they’ve fueled sustainable business by prioritizing Net Revenue Retention. Why Net Retention? Tim swears by the power of net retention. Three Pillars of Net Retention Growth. Key Takeaways.

Retention 166

Retention Acquisition Customer Success Strategy 166

SaaStr

APRIL 24, 2021

So many startups these days are claiming they have “ARR” from revenue that … doesn’t recur. Doesn’t ARR stand for Annual Recurring Revenue? ARR now really means revenue with 100%+ Net Revenue Retention. 50% revenue from software (recurring), 50% from payments (not-recurring).

Merchant Services 359

Merchant Services SaaS Payments Payment Solutions Payment Services 359

SaaStr

FEBRUARY 11, 2021

The top one was that pre-IPO investors are now more interested in GRR — gross revenue retention before churn — than NRR. But … Kyle’s point, and Wall Street’s, is that high NRR can also mask low net new account growth. That means the vast majority of new revenue is coming from existing customers.

Scale 260

Scale Scaling Engineering Churn 260

SaaStr

NOVEMBER 2, 2021

Let’s call that at least a 2x multiplier in Second Order Revenue. Go long if you have happy customers and Net Negative Churn — Go Very Long. But if you have happy customers and net negative churn (i.e., your accounts grow each year in dollar terms, net of churn) — they you can go so very long.

Scale 293

Scale Churn Retention Acquisition 293

Payrix

APRIL 24, 2024

Part 2 – Selling payments to net new customers and your existing software user base. Andy suggests that there is an immediate and discernible value-add for software companies to embed payments as a means for retention of SaaS revenue. Part 3 – How value-added services contribute to the payments experience for customers.

Payments 162

Payments Embedded Payments Merchant Services Payment Solutions 162

SaaStr

DECEMBER 2, 2020

But Slack is growing revenue at 140% and its customer base is up almost as much, at 35%. Some deceleration in net retention. But net retention, while strong, has declined from 135% to 125% over the past 5 quarters. 1,000+ $100k ACV Customers, 49% revenue from Big Customers. This one is a bit unexpected.

SMB 246

SMB Enterprise Cloud Retention 246