SaaStr

SEPTEMBER 20, 2023

What does this mean for Cloud companies? While we’re still a ways from the high valuations of 2021, we are seeing valuation multiples normalize closer to the range of what we saw for long-term pre-pandemic averages. A 1% improvement in revenue growth today has the same impact on valuations as a 2% improvement in free cash flow margin.

Cloud 267

Cloud Payments Software Review Payment Solutions 267

SaaStr

MAY 16, 2021

Partnerships have a tremendous potential to tilt your growth curve, and at Gorgias, this potential amounts to about their revenue. The objective could be several things, from lead and revenue sharing, driving visibility or customer success. What is the partner TAM (Total Addressable Market)? Average contract value.

Scale 244

Scale Sales Hiring Sales Funnel Consulting 244

SaaStr

DECEMBER 5, 2022

Yet, funded startups can learn a lot from the bootstrapped ones to grow smoothly and generate revenue. In SaaS, retention is usually driven by recurring revenue, cross-selling, and up-selling. This is where SaaS companies generate most their revenue. Some startups need constant cash infusions to achieve growth.

Payments 130

Payments SaaS Payments Payment Solutions Venture Capital 130

Point Nine Land

JUNE 18, 2023

Everything you always wanted to know about cohort analysis (but were afraid to ask) Back in 2012, I wrote a blog post titled “Know your user cohorts” , which began like this: “One of the most important tools to better understand the usage of a web application — or a service, a game or a mobile app, it doesn’t matter — is a cohort analysis.

SaaS Payments 128

SaaS Payments Payment Services Payments SaaS 128

SaaStr

DECEMBER 9, 2019

And even if there is budget left, you generally can’t burn it on a recurring revenue product. But let me tell you what I’ve learned. (Note this is an update / refresh of our classic 2014 post). There are some real mysteries in SaaS. Even now that I understand them, I still see them as a bit of a mystery.

Sales 332

Sales Revenue Software SaaS 332

SaaStr

MARCH 22, 2021

It is the video service, but it turns out almost every SaaS company, as it approaches a billion in revenue, needs a second product to scale, right? And what we see with almost any vendors, if you have multiple products, you buy more from them. It quadrupled. We may find later that some others did the same. Now, you know Zoom.

Scale 198

Scale SMB Enterprise Branding 198

Chart Mogul

JANUARY 22, 2021

In this blog post, we have collected everything you need to know about churn — along with links to the best resources on the internet. This is where this blog post comes in. Note: This blog post is a work in progress — we plan to keep updating it and adding more links as we go along. Bookmark it. Let’s dive right in!

Churn 136

Churn SaaS Benchmarks Subscription 136

Blulogix

NOVEMBER 8, 2023

Accelerating Subscription Business Growth with Usage-Based Pricing By BluLogix Team The subscription business model has long been recognized as a steady path to recurring revenue and business growth. Customers want to pay for precisely what they use, and they expect their service providers to accommodate this need.

Subscription 52

Subscription Payment Features Pricing Business 52

Chart Mogul

JULY 6, 2023

Let’s take a look at negative churn, what it is, why it’s essential, and how to achieve it. Here are the topics we’ll cover in this post: What is churn? What is negative churn? In simple terms, churn is the rate at which customers or revenue is leaving your SaaS business. What is net negative churn?

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

ChurnZero

MARCH 31, 2022

Q: In Dave’s version of logo retention rate*, how do you treat customers on contracts that allow early-outs? the logo stays with you, but they consume less, so their monthly recurring revenue decreases)? Annual recurring revenue (ARR)-based churn (dollars renewed divided by dollars up for renewal) does not.

Customer Success 98

Customer Success Metrics Technical Review Scale 98

Baremetrics

SEPTEMBER 2, 2021

Most SaaS businesses adopt a subscription-based model supported by a recurring payment system. Setting up a recurring payment system can be complicated and requires the right tools to measure, manage, and review payments regularly. What is Recurring Billing? How Does Recurring Billing Work? Table of Contents.

Payment Services 89

Payment Services Merchant Services Payment Features Payments 89

Sales Enablement, SaaS and Growth

OCTOBER 29, 2018

Now don’t get me wrong - the sales organisation plays a vital, absolutely vital role acquiring customers, but when you have a services organisation that typically retains clients for several years, you begin to realise that services is where the recurring revenue and big money is made. This is always a huge mistake.

Churn 152

Churn SaaS Payments SaaS Payments 152

User Pilot

DECEMBER 9, 2021

What is Net Revenue Retention? In this article, we’ll take an in-depth look at what Net Revenue Retention is, why it matters and the multiple approaches you can take to improve it. You can increase the Net Revenue Retention by focusing on driving account expansion or reducing churn.

Retention 89

Retention Revenue Software Review SaaS 89

Baremetrics

SEPTEMBER 26, 2021

Most SaaS companies keep an eye on churn, but do you calculate both revenue churn and customer churn? The crystal-clear dashboard gives you a holistic view of your revenue, expenses, and profit for a specified period. Sign up for the Baremetrics free trial and start monitoring your subscription revenue accurately and easily.

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

Baremetrics

SEPTEMBER 14, 2021

The Baremetrics blog has a ton of articles about accounting, so be sure to check out some of our other favorites! What Makes SaaS Accounting Different from Traditional Accounting? What Makes SaaS Accounting Different from Traditional Accounting? What Makes SaaS Accounting Different from Traditional Accounting?

SaaS Payments 93

SaaS Payments Payment Services Payments Payment Features 93

Baremetrics

OCTOBER 21, 2021

This was a major issue because their Poland-based PayPal customers made up a significant portion of UXPin’s revenue. After all, according to Kowalski, they anticipated a risk of losing around half of their Monthly Recurring Revenue (MRR) by asking people to manually switch. Marcin and his team faced a decision.

Payment Services 98

Payment Services SaaS Payments Payments Payment Solutions 98

OpenView Labs

NOVEMBER 16, 2021

Annual Recurring Revenue (ARR). The value of your contracted subscriptions taking into account revenue added/lost from components such as new sales, renewals, upsells, churn, etc. Annual Contract Value (ACV) to Marketing Cost Ratio. ACV Ratio = Expense of marketing campaigns : Revenue from marketing campaigns.

Benchmarks 71

Benchmarks Scale Metrics Sales Recruiting 71

OpenView Labs

DECEMBER 8, 2021

What was once an upfront investment with clear-cut milestones and handoffs between Sales and Customer Success (“CS”) is now a continuous and complex journey where the initial contract is just a company’s metaphorical foot in the door to a larger expansion opportunity (and bulk of the future revenue).

Customer Success 64

Customer Success Acquisition Retention Benchmarks 64

OPEXEngine

FEBRUARY 9, 2021

And with more popularity comes more confusion, especially over what metrics are most important to drive the best results. SaaS Metrics #1: Annual Recurring Revenue (ARR). ARR is a representation of the Recurring Revenue a subscriber has with you over a 12 month period. The SaaS market is expected to reach $164.29

Metrics 52

Metrics SaaS Payment Features Customer Lifetime Value 52

SaaStr

JANUARY 6, 2023

On any given day, the enterprise buyer has many priorities that will come before your product, and those priorities may not be what you expect. ” When a lot of companies talk about innovation today, they often immediately jump to what that means for engineering and product.

Enterprise 130

Enterprise Sales Funnel Innovation Branding 130

Baremetrics

DECEMBER 7, 2023

The benefits of a well-thought-out process includes increased visibility to your revenues, expenses, and cash flows, and a faster feedback loop to make your forecasting more operationally focused. For example, “Does our app need to feed monthly usage data into the billing system, or can we do it manually?”

Payment Solutions 52

Payment Solutions SaaS Payments Payments Software Review 52

OPEXEngine

MARCH 24, 2020

So, what is ACV in sales and what is a typical SaaS ACV? What is ACV in Sales? ACV (annual contract value) is a metric that typically represents the average annual contract value of a customer subscription. Let’s imagine your star salesperson signs up a new customer for a 36-month contract for a total of $180,000.

Scale 58

Scale SaaS Sales B2C 58

Chaotic Flow

JANUARY 15, 2013

Since publishing the original SaaS metics blog series and subsequent SaaS Metrics Guide to SaaS Financial Performance , I’ve received numerous inquiries on various details and hidden gotchas in SaaS metrics implementation. SaaS Metrics FAQ #4 | What is MRR Churn? MRR cancelled contracts. ?t MRR) per time interval (?t)

Churn 142

Churn Metrics SaaS B2C 142

Chart Mogul

MARCH 31, 2022

Regular check-ins allow you to stay up-to-date with everything that’s happening in your business: Leads coming from a new source A product that receives good feedback Revenue churn happening suddenly The time it takes to convert new leads Learn how to value your startup. Monthly Recurring Revenue (MRR).

Metrics 52

Metrics Scale Startup SaaS 52

Baremetrics

DECEMBER 7, 2023

What’s different this time is that we are having these conversations with nearly everyone, and the changes can be very sudden. Here’s what we cover: 1. Adjust your revenue forecast Base-Case scenario Worst-Case scenario Review bank balance before expense adjustments 4. We will also show you how you can evaluate your new plan.

SaaS Payments 52

SaaS Payments Payment Services Sales Hiring Payments 52

Totango

MAY 14, 2021

This KPI tells you what percentage of customers are renewing their subscriptions with you over a given time frame, typically a year. Revenue Churn Rate. Revenue churn rate tracks how much of your revenue you retain each month. It can also reveal how downgrades and upgrades are contributing to revenue fluctuations.

Metrics 65

Metrics Retention Software Review Customer Lifetime Value 65

Baremetrics

OCTOBER 8, 2021

That’s because it has competitive fees among the big processors, it can handle recurring revenue streams, and it is easy to receive payments and send payouts across the globe. You should sign up for the Baremetrics free trial , and start monitoring your subscription revenue accurately and easily. What is CAC? What is CAC?

Payment Services 96

Payment Services Payment Methods Payments SaaS Payments 96

OPEXEngine

AUGUST 17, 2021

In their early days, most recurring revenue businesses start by tracking financial operations in spreadsheets or using tools that aren’t optimized for managing subscription revenue. As your sales volume grows, month over month, you’ll see an incremental increase in new contracts, contract changes, and renewal transactions.

Payment Services 52

Payment Services B2B SaaS Payments Payments 52

Chart Mogul

JANUARY 22, 2021

In this blog post, we have collected everything you need to know about churn — along with links to the best resources on the internet. This is where this blog post comes in. Note: This blog post is a work in progress — we plan to keep updating it and adding more links as we go along. Bookmark it. Let’s dive right in!

Churn 52

Churn SaaS Benchmarks Subscription 52

OPEXEngine

MAY 22, 2020

He defines the metrics that mean the same thing to most everyone – like ARR , and the ones that are “squishy” and vary from company to company, like LTV (Lifetime Value) and TCV (Total Contract Value). Drivers are what produce the performance at the top of the value chain. ACV can be ARR plus services revenue, ie.,

Metrics 52

Metrics SaaS Deferred Revenue Benchmarks 52

Chargify

AUGUST 17, 2020

So what is the next step toward putting these best practices in place at your organization? This article will walk you through what these brands are doing right when it comes to events-based billing and how you can implement it in your own operations. What Amazon Web Services and Twilio Get Right. How Twilio Does It.

AWS 98

AWS Payment Services SaaS Payments Payments 98

User Pilot

JUNE 5, 2023

TL;DR The SaaS conversion funnel is a visual representation of your ideal customer journey from awareness to product adoption and revenue expansion. There are six stages of the funnel: Acquisition , Activation , Adoption , Retention , Referral , and Revenue (AAARRR); and, success is measured differently across each stage.

SaaS 68

SaaS Sales Funnel Customer Lifetime Value Acquisition 68

OPEXEngine

NOVEMBER 23, 2020

If you are asking “what is a functional P&L?”, Here’s a super basic overview of the key P&L areas we typically use: Revenue. So to summarize, if you are recognizing revenue on a cash-basis, you realize revenue when cash comes in the door. NOT UTILIZING A FUNCTIONAL P&L. Cost of Goods Sold (COGS).

Finance 52

Finance Sales Hiring Headcount Scale 52

Chart Mogul

AUGUST 20, 2020

It was a long, complex, and expensive process that took me away from what I loved most – running my business. Monthly Recurring Revenue (MRR). An obvious but important SaaS metric, especially if your customers are on monthly contracts. Annual Recurring Revenue (ARR). Negotiate everything.

Acquisition 105

Acquisition Startup Technical Review Scale 105

ChurnZero

JUNE 15, 2021

This is a guest blog post by Jeff Galowich, CEO of Blue Horizon Software. This is the key component of what we call the “quality of revenue,” which focuses on the stability and predictability of a company’s underlying business fundamentals. . cross-selling, upselling, etc.) cross-selling, upselling, etc.)

Retention 59

Retention Metrics Churn Customer Success 59

Chargify

JANUARY 15, 2020

Multiple billing systems and complicated contract customers that required itemized invoices were being managed manually, within an excessive number of spreadsheets. Monthly revenue accounting lasted two weeks or more. And that was becoming a problem. This is a story we see again and again. Why does this happen?

B2B 67

B2B Payment Features Software Review Scale 67

Totango

NOVEMBER 25, 2020

What is Customer 360? . With this feature, you can examine a number of insightful metrics and segment your client base for an optimized customer journey that surpasses what the competition can offer. . What Goes Into a Real-Time Customer 360 View? So what kind of insights can you get from Customer 360? Number of Accounts.

Customer Success 108

Customer Success Technical Review Outsourced Development Churn 108