SaaStr

NOVEMBER 1, 2023

The rest of the growth is from its Divvy platform, which is bought in 2021 for $2.5 Today, software is “just” at a $270m ARR run rate, and just growing 21%. But payments and transaction are far bigger at $800m run rate — and growing faster at 38%. #2. Much less than revenue grew. It took years.

Payment Services 282

Payment Services Payments SaaS Payments Payment Solutions 282

SaaStr

NOVEMBER 22, 2023

Growth is strong if not crazy, at +29% at $660m in “ARR” Importantly, it’s efficient growth as we’ll see. So AppFolio is a quiet member of the 10x ARR club – SaaS for property management – $660m run-rate, $7.2B 10 years later, they hit $100m ARR in 2016 and growth just compounded from there.

Payment Services 232

Payment Services Payment Solutions SaaS Payments Payments 232

SaaStr

DECEMBER 28, 2023

But overall, overall … well SaaS and Cloud growth hit record lows per the BVP Cloud Index: As you can see, even though 2022 was a tough year in the public markets and for valuations, revenue growth still held up reasonably well. And Gartner still predicts overall Cloud spend will grow to record rates in 2024.

Azure 292

Azure Cloud SaaS Trends 292

CustomerSuccessBox

MAY 18, 2022

Searching for blogs in the arena is getting accessible slowly and it’s time you leverage the essential knowledge these blogs have to offer, to flourish! Here is the list of 10 Customer Success blogs to follow and save in your digital library in 2022! Suggested blog : Account Expansion: If You Want To Grow Fast, Do This….

Customer Success 52

Customer Success Scale Technical Review AI Search 52

SaaStr

MARCH 8, 2024

They rocketed to $20m ARR, and then … growth radically slowed. From 100% growth at $10m ARR, to 15% at $20m ARR. But rapidly slowing growth has happened to many the past 24 months. What’s really hard to solve is The 3H’s: High Growth for a while — but High Churn. To 15% a year. The tough part?

Churn 225

Churn Startup SaaS Payments Venture Capital 225

SaaStr

DECEMBER 19, 2023

Maybe they can do 100 if they are really working hard, but even there, the revenue per lead will often fall: Why Lead Velocity Rate (LVR) Is The Most Important Metric in SaaS | SaaStr Why Lead Velocity Rate (LVR) Is The Most Important Metric in SaaS 50 qualified leads a month x 3 interactions per lead = 100-150 hours of work.

Scale 266

Scale Sales Hiring Scaling Sales 266

SaaStr

JULY 24, 2022

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: Gartner: Software Spend Will Still Grow by $100 Billion in 2023. SaaStr 572: 10 Mistakes in Building Out Your Revenue Organization: A CEO’s Perspective with Insider CEO Hande Çilingir. Top Podcasts This Week: 1.

Scale 235

Scale Sales Hiring Scaling Pricing 235

SaaStr

SEPTEMBER 2, 2023

So there’s a question I’ve had for some time in SaaS: does high NRR really equal higher growth? “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.

Startup 247

Startup SaaS SMB Banking 247

SaaStr

SEPTEMBER 12, 2023

Customer success teams are critical for SaaS companies as they own the customer relationship from start to finish, managing up to 75% of revenue through renewals and upsells. If done right, customer success can drive significant additional revenue through attitudinal loyalty and trust, proving it is a revenue enhancer, not just a cost center.

Sales Hiring 224

Sales Hiring Technical Advisors Compensation Outsourced Development 224

SaaStr

DECEMBER 20, 2023

Canva: – Almost $2B ARR – Growing 40%+ – Profitable And … 4,000 employees That's about $500k in revenue per employee That's where software really makes money — Jason ✨Be Kind✨ Lemkin  ?? Importantly, growth has accelerated this year. jasonlk) December 19, 2023 5 Interesting Learnings: #1.

AWS 251

AWS B2C AI Scaling 251

SaaStr

JANUARY 2, 2024

David Sacks classic post on Burn Rate Multiple is A+ and a key metric for every venture-backed startup. But the best burn less each month than they bring in in new bookings and revenue (a Burn Multiple of 1x or less). It simplifies a lot of complexity into one metric. Well, at a practical level, it assumes the next round is coming.

Startup 273

Startup Metrics Revenue 273

SaaStr

SEPTEMBER 20, 2023

The main reason for the pullback was due to the external shock of hiking interest rates. Within a year, we moved out of a hyper-low interest rate environment at record-breaking speed, which led to multiple compression and macro uncertainty. There’s been a pivot from growth at all costs to driving profitability.

Cloud 242

Cloud Payments Software Review Payment Solutions 242

SaaStr

MARCH 29, 2024

They wanted to do three things: Enter a space they had no product or customers in today; and Add on at least $10m of extra revenue for the year; and Not add too much to their burn rate. Even a PE firm wouldn’t buy it with no growth at all, I don’t think. It might be worth close to nothing based on a DCD analysis.

Pricing 236

Pricing Scale Startup Acquisition 236

SaaStr

JANUARY 24, 2024

Founded back in 2010, it had steady growth to $100m ARR, IPO’d quietly in 2019, then has grown 30%+ annually every year since. Consistent Growth of 30%+ from $100m to $360m in ARR Not that many grow as consistently as SproutSocial. And 20% or so of its revenue importantly comes from agencies, i.e. partners. Not direct.

Social Media 214

Social Media SMB Enterprise Scaling 214

SaaStr

MARCH 10, 2024

Because beyond WFH, RTO, and all the tactical changes of the past few years, the biggest structural one really is — The March To $400,000 in Revenue Per Employee. In fact, almost every SaaS leader at scale is hitting $300,000 in Revenue Per Employee at the pre-IPO phase. Growth is still King, But Profitability is Now Queen.

SMB 238

SMB Cloud Startup Scaling 238

SaaStr

OCTOBER 6, 2023

I know a few in the Cloud 100 whose growth has plummeted to 20% or lower. Net net, the leaders’ growth has plummeted by almost half. For years we saw growth rates increase, but in 2023, the average growth rate for a Cloud 100 company – the 100 best private companies in the world – has been nearly halved.

Cloud 205

Cloud Forecasting Retention SaaS 205

SaaStr

MARCH 27, 2022

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: Why I’d Rather Be Acquired by Vista Than a Big Tech Company. Even A Slightly Too High Burn Rate Can Get Out of Control. SaaStr 541: How to Set and Hit Revenue Targets with Sam Blond, CRO at BREX. Outbound Always Works.

VP of Engineering 199

VP of Engineering Scale CTO Engineering 199

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. NDR captures and reflects the growth and performance of your overall business and revenue. Read Article. Read Article.

Customer Success 52

Customer Success Scale Leadership Retention 52

SaaStr

NOVEMBER 16, 2022

Jaw-dropping rates. Growth levels for all the best are still at incredible rates. But in many cases, down from even more incredible rates a few quarters earlier. Strong growth in 10+ user customers with consistent 135% NRR is masking some decline in NRR from smaller customers (and possibly a tiny bit at the largest ones).

Headcount 288

Headcount SMB Engineering Scaling 288

SaaStr

DECEMBER 19, 2023

So I know we’ve all become stock market, interest rate, ZIRP and fed experts over the past 24 months. First, in the history of SaaS, things weren’t always easier when interest rates were lower. With much faster growth at much higher margins, and 70% of its revenue on Shopify? I don’t. year to date.

Marketing 239

Marketing Cloud Trends Scale 239

SaaStr

MAY 17, 2023

Revenue multiples are brutal out there for many. Smaller, Medium, and Larger Customers Are All Growing at About the Same Rate. Just an interesting note, when so many other SaaS and Cloud leaders are getting most of their growth in this macro environment from their larger customers. Growth halved from 2021. Today, 16%.

Scale 224

Scale Cloud Enterprise Trends 224

SaaStr

MAY 24, 2023

So it’s tougher out there for many of us, but many Cloud and SaaS leaders are still growing at epic rates, even if not quite at the torrid rates of 2021. That doesn’t mean huge enterprise customers, but here it’s their $50k+ ACV ones, which now represent 28% of revenue, up from 22% just a year ago.

Headcount 284

Headcount Sales Hiring Scale Cloud 284

SaaStr

JANUARY 24, 2023

In this session of SaaStr Workshop Wednesdays, the Managing Director & Head of Growth Equity at OMERS Growth Equity, Mark Shulgan, shares advice for focusing on the fundamentals and keeping profitability at the forefront. In the SaaS space, revenue growth was the king of metrics for many years, but that has changed.

Scale 213

Scale Scaling Software Review Operational efficiency. 213

SaaStr

APRIL 19, 2023

And their mix of software, payments and hardware revenue drives up the total deal size — but puts a lot of pressure on margins. They’re at a $750,000,000 run rate, not that much smalelr than Toast, and are still growing a very healthy 24% (!). 39% of their revenues from software, and going down. But know thy margins.

Payment Solutions 233

Payment Solutions Point of Sale Payments SaaS Payments 233

SaaStr

DECEMBER 14, 2023

At the time, they were less than a billion or two in revenue, and now, they just crossed over a $30B revenue run rate. I t’s been a wild growth experience, and Google Cloud is considered the fourth or fifth-largest Enterprise company in the world.

Cloud 235

Cloud Scale AWS AI 235

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 109

Scale Sales Compensation Customer Success 109

SaaStr

JANUARY 5, 2024

The growth is there, but theiir losses are still large and they may need to reduce them for an optimal IPO. Growth slowed for everyone in 2023 and they now need to buy growth. Growth slowed for everyone in 2023 and they now need to buy growth. Databricks probably should not, and wait until 2025.

SMB 296

SMB SaaS AI Software Review 296

SaaStr

JULY 6, 2022

At a $6 Billion revenue run ($4.5B in SaaS revenue), it’s growing an impressive 22% with fairly epic operating cash flows of 30% (more on that below). #1. 9,500 customers at $6B in ARR, so about $600,000 ACV per customer. GRR is revenue retention from existing accounts, including churn but excluding any account expansion.

B2C 246

B2C Scaling Finance Enterprise 246

SaaStr

MARCH 9, 2022

During his SaaStr Annual presentation, Tom Clayton, CRO of Bill.com, shared his insights and advice for growing revenue streams to maximize business success. . The Five Key Growth Levers. Clayton begins by sharing the key levers that accelerate growth from the $100 million mark to $1 billion. Pursue Diverse Revenue Models.

Revenue 237

Revenue Sales Hiring Leadership Scale 237

SaaStr

APRIL 6, 2022

That’s triple digit growth going into a $2 Billion run rate! It reached a peach of 189% in Q3’20, but nevertheless it’s breathtaking how long Snowflake has been able to maintain this epic engine of growth. #3. 1M+ Customers Remain the Fuel for Growth. run rate, and about half in Sales & Marketing.

Cloud 272

Cloud Scale Engineering Revenue 272

SaaStr

MARCH 13, 2022

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: 1. Zoom Had a Burn Rate Budget. SaaStr 535: From SendGrid to DigitalOcean: Hacks for Founders of High-Growth Startups with DigitalOcean CEO Yancey Spruill. So Should You. Your VCs Are Worried About Public Multiples.

Scale 187

Scale Scaling Enterprise Startup 187

SaaStr

JUNE 5, 2023

So two recent data analyses across both private and public SaaS companies interestingly showed basically the same thing: for the best SaaS companies, on average, growth in Q1 was down about 33% or so from a year ago. The post Growth Slowed Down About 33% On Average For Everyone in Q1 appeared first on SaaStr. What did they see?

Cloud 279

Cloud Startup Trends SaaS 279

User Pilot

MAY 2, 2024

It’s crucial for SaaS businesses because it drives revenue growth, increases customer lifetime value , reduces customer acquisition costs , and fosters positive word-of-mouth marketing. Userpilot is a product growth platform with analytics, feedback, and engagement features. The revenue is more predictable, too.

Retention 111

Retention Metrics Strategy Scale 111

SaaStr

MARCH 20, 2024

With personal experience from EchoSign and other high-growth companies, he was spoiled when it came to those companies raising money from exceptional VCs. Higher than he imagined in terms of the founder quality bar and, the stage of the business, and growth and efficiency metrics. And that’s what makes the bar that much higher.

Sales Hiring 251

Sales Hiring Sales Recruiting Scale Headcount 251

SaaStr

FEBRUARY 27, 2024

Magic Number is your growth in ARR over a quarter divided by the sales and marketing spend in the prior quarter. The magic number is a key measure of financial health for any SaaS company, and it has significant implications for your company’s ability to not only drive profits but also its ability to drive growth.

VP of Engineering 216

VP of Engineering Scale Marketing Benchmarks 216

SaaStr

JANUARY 25, 2023

. “[We’re] not fighting those headwinds”: Given that customers sign 3+ year, $1m+ contracts, one wouldn’t expect any massive decline in revenue from any shorter-term macro effects anyway. Steady, steady, steady strong growth. Steady 98%-99% Gross Renewal Rates. 5 Interesting Learnings: #1. to $4m ACV.

Azure 250

Azure Cloud Enterprise Subscription 250

SaaStr

MARCH 14, 2023

And good growth slows to … not so good growth. Investing when growth is strong but the burn rate is too high. Yes, a large VC fund can make this work sometimes, but for me, if the burn rate is too high, I find they tend to run out of money as they scale to $5m-$10m ARR. Investing in mediocre growth.

Investment 290

Investment Startup Scaling SaaS 290