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TL;DR: While most public SaaS companies are growing at 8-10%, the companies crushing it are those selling outside the tech bubble – restaurants, construction, logistics, and e-commerce. They’re growing 2-3x faster than traditional horizontal SaaS. Many are doing pretty, pretty, well. Build the Monday.com for your industry.
Managing revenue operations (RevOps) in a SaaS company is all about aligning sales, marketing, and customer success to drive growth efficiently. For instance, automating invoice reminders and collections can significantly reduce late payments, which is a common issue in SaaS. The best SaaS companies have NRR above 120%.
Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual? Nothing is a bigger headache in a Fortune 500 company that having to go back to procurement every single month to get an invoice approved. I think this is a topic where you get a lot of bad advice. Think about yourself as a consumer.
We’re living through the biggest transformation in B2B sales since the birth of SaaS itself. The latest from 2025 survey data by ICONIQ from 205 GTM executives across leading B2B SaaS companies The data tells a stark story. Here are the 10 most critical findings every SaaS leader needs to understand: 1.
When SaaStr Fund made the first investment in RevenueCat back in 2018, nobody could have predicted that this “simple API for managing in-app subscriptions” would become the infrastructure powering 33% of all mobile subscription apps and reach a $500M valuation in 2025. ” required weeks of developer time to answer.
To put this in perspective, it took Snowflake—one of the fastest SaaS companies in history—six quarters to go from $1B to $2B ARR. API-First Revenue Model Unlike the subscription-heavy models of traditional SaaS, 70-75% of Anthropic’s revenue comes from API calls through pay-per-token pricing.
Okta’s following the classic SaaS maturity curve – the key is maintaining predictability in the deceleration. Best-in-class SaaS companies typically see 35-40% international mix at this scale. Okta’s proving that mature SaaS can deliver 25%+ operating margins while maintaining growth.
Her company specializes in API integration platforms that enable SaaS companies to launch integrations faster and automate complex business processes. The post Where AI Really Matters in Vertical SaaS With CEOs of Owner, Alloy Automation, and DoNotPay appeared first on SaaStr.
Especially once the renewal cycle heats up and once you have a ton of customers to invoice. But if you have a very inexperienced leadership team (young founders, lack of SaaS experience, etc) then maybe bringing on a strong finance leader earlier makes sense. Below are my rough guidelines for a typical SaaS company today.
Gross Dollar Retention (GRR) is a critical metric for SaaS businesses, especially when presenting to investors. 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).
By Inga Broerman How Usage-Based Pricing is Transforming Subscription Billing The subscription economy is undergoing a transformation, driven by the rising popularity of usage-based pricing. The days of flat-rate subscriptions being the default option are gone. Your ERP cannot bill usage subscriptions.
Operating a business entails a number of processes like managing products and payments, invoices, customer engagement, revenue, unpaid invoices and much more. That is why most modern SaaS and subscription-based businesses have transitioned to using a good billing software, reducing their workload by a great deal.
Revenue growth is up 21% overall, and subscription growth is up 33% — at almost $5 Billion in ARR. It’s driven Atlassian stock up +28% after the results: Is SaaS back? So Atlassian is on a bit of a tear. Wall Street is happy. Let’s dig in. 5 Interesting Learnings: #1.
In this blog, we will explore why companies migrate to a new billing system, the pain points of billing system migration, the best practices to overcome these obstructions, and SubscriptionFlow’s tailored solutions that guarantee your business a seamless transition. The subscription plans must be transferred to the new software as they are.
This is where the concept of real invoice calculation comes in, fundamentally changing the way organizations approach revenue projection. Schedule a Demo Today What is Real Invoice Calculation? Real invoice calculation is an approach to revenue prediction that goes beyond simple estimates.
As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscriptionSaaS model since they only earn revenue when the customer is using the product. Strengthening the pre and post-sales process ensures a better long-term solution fit.
Did you know that the total value of losses due to fraudulent card payments worldwide – including both credit and debit cards – is expected to reach $43 billion by 2028? Thats an astronomical number, and businesses accepting card payments must take security seriously to avoid falling victim to fraud.
Start with the Basics: Commission Structure Base + Commission : Most SaaS companies pay a modeset base salary plus commission. Avoid commission-only structures—they rarely work in SaaS because reps tend to drift away if they don’t see immediate results. This is standard in SaaS and aligns incentives with long-term revenue.
SaaS has revolutionized how we work, but let’s be honest, managing all those subscriptions can feel like juggling flaming torches. You’re dealing with contracts, security concerns, and costs that seem to spiral out of control. This blog is your guide to conquering SaaS chaos. It’s about sanity.
2024 is coming to a close, and it has been a terrific year for SaaS businesses as the industry has witnessed quite a favorable growth. For SaaS companies, accounting becomes one of the most crucial processes to understand their financial and overall business health, and then make informed decisions about future steps.
Whether it’s polishing a blog post, a product release, or anything else…Speed of execution and iteration is now becoming more important. Don’t wait 3 weeks to get the product marketing perfect…Or the blog post perfect. If you’re building a steady, profitable SaaS business, none of this may apply.
By Kegham Khrigian From ERP to Agile Monetization: A Roadmap for SaaS Growth For SaaS companies, staying competitive requires agility. But for many SaaS businesses, legacy ERP systems create significant obstacles. But their rigid structures and limited flexibility make them ill-suited for the demands of modern SaaS operations.
valuation—the fastest to $100M ARR in SaaS history (12 months) Replit : $100M ARR at $1.16B valuation—10x growth in 18 months Lovable : $50M ARR by April 2025, €14.3M What This Means for B2B: The New Playbook Replit’s success signals fundamental shifts in how successful SaaS companies will be built: 1.
Users describe desired outcomes in natural language: “Build me a SaaS tool for managing freelance projects with time tracking, client billing, and automated invoicing.” ARR per employee (~65 FTEs) Industry context: Typical SaaS companies achieve $200-400K ARR per employee Adoption Patterns: Loveable: 2.3M
So I’d just about given up on the second worst SaaS vendor in our stack at SaaStr. The SaaS Resurrection Playbook What can B2B companies learn from this dramatic turnaround? The Bottom Line If you’re a SaaS founder watching customers flee, there’s hope. And would never think to cancel. The 10x Feature is Real.
In this blog, we’ll explore how to approach credit card processing like an opportunity instead of just another expense. We’ll also outline how to choose the best payment solutions for your unique business needs. For instance, if you need to accept recurring billing, choose a provider that has that capability.
This is pretty common in the prosumer space and especially in mobile subscription apps. And even where you don’t see 20% churn the first month with SMBs, it often lurks, because most B2B apps in SaaS don’t even get 80% of their SMBs activation the first month. Dear SaaStr: We Have More Than 20% Churn Our First Month.
It’s the vertical SaaS rocketship: $840m ARR Still growing a stunning 29% (!) Theyve built a true operating system for the tradeshandling everything from CRM to payments to field service management. Lesson for SaaS Founders : If youre in vertical SaaS, aim to be the OS for your niche. 5 Interesting Learnings: 1.
I pay more for AI subscriptions than I do for my car lease — Matthew Berman (@MatthewBerman) June 5, 2025 Why the Slowdown May Be Real Several structural factors suggest this isn’t just a temporary pause: Implementation complexity has caught up with enthusiasm.
So RevenueCat has its latest “Sate of Subscription Apps 2025” report out and there is a ton of great stuff in here. So they see 40% of all mobile subscriptions — and a ton of data from it. Across a stunning 75,000 paid subscription mobile apps. The data across ~40% of all paid mobile subscription apps in U.S.
In this blog, you will find out the meaning of revenue growth management, its importance, components, and challenges. How is Revenue Growth Management Relevant to SaaS? Our discussion of the RGM model above is highly relevant to the SaaS industry as well. After all, no business wants its success to be short lived.
Fair and competitive pricing, especially in the SaaS arena has emerged as a strong requirement for businesses looking for operational stability. Dynamic pricing SaaS can certainly be a winning strategy for businesses looking to stay relevant to the consumers interests. What is Dynamic Pricing SaaS?
SaaStr Annual has always been the go-to event for SaaS founders, executives, and investors, but 2025 is shaping up to be the best one yet. AI is transforming SaaS, and were dedicating two massive stages to the SaaStr.AI 300+ World-Class Speakers This years lineup includes 300+ speakers from the best SaaS and AI companies worldwide.
By Kegham Khrigian Empowering Your Channel Partners: The Key to Revenue Growth For SaaS and MSP businesses, channel partners are more than just intermediariestheyre strategic assets that can significantly amplify your reach and revenue. But while channel ecosystems offer immense potential, they also present unique challenges.
Whether a business operates in SaaS, manufacturing, retail, or services, adhering to revenue recognition standards is essential for building trust, ensuring compliance, and achieving sustainable growth. Real-World Impact of Accurate Revenue Recognition Consider a SaaS company that offers annual subscriptions with multiple add-on services.
For businesses in sectors like MSPs , UCaaS , SaaS , and IoT , where competition is fierce and pricing can be complex, margin analysis is essential for maintaining a competitive edge. For example, a SaaS company may find that its entry-level plan has a higher-than-expected cost of service, leading to lower margins.
But if youre relying on your ERP to handle the complexities of IoT or Telematics monetizationdevice-level billing, usage analytics, subscription logic, channel managementyoure setting it up to fail. Invoices are missed. Yes, it handles financial reporting, general ledger entries, and compliance. Its great at what its built for.
Email newsletters & blog posts Basic in-app messages We don’t have a set process yet How do you measure the success of those announcements? Book a Demo & See How Optimizing Your New Product Announcement Strategy A successful new product announcement is more than just an email blast or a blog post.
By BluLogix Team The Real Reason SaaS Companies Struggle with Usage-Based Billing—And What the MGI Report Says to Do About It For years, SaaS companies have embraced subscription billing for its simplicity and predictability. For SaaS companies, this is particularly relevant. The problem?
This approach aligns incentives with customer adoption while still giving reps a meaningful upfront payout to stay motivated In a consumption-based SaaS model, you absolutely need to incentivize sales team leads on client go-lives and actual usage , not just closed-won deals. using 20 out of 25 features).
Another example is a SaaS business that uses revenue projection & prediction to align cash flow with subscription renewals. This helps the company avoid disruptions and maintain consistent output.
Your provider will offer a set of APIs (Application Programming Interfaces) your developers can use to integrate the Click to Pay systems with your website CMS, eCommerce platform, or SaaS platform. Click to Pay is an online payment method that allows customers to purchase items online with one click using stored payment details.
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