SaaStr

APRIL 19, 2024

He’s invested in startups as a VC since 2013 and has 10x his fund. EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. Certain business models have economies of scale, and some don’t. The Adobes, Microsofts, and Intuits made $1M of revenue per employee.

Engineering 250

Engineering Business Model Pricing Scaling 250

Blulogix

FEBRUARY 9, 2024

This surge in subscription-based business models spans across various industries, from software and media to retail and services, reshaping the consumer landscape and redefining notions of customer engagement and value delivery. Creating a Monetization Framework For Your Business View the Whitepaper Why Subscriptions?

Business Model 52

Business Model Subscription Payment Features Business 52

Subscription Flow

JANUARY 29, 2024

In the context of subscription models, accrued revenue is the money that a business has made but hasn’t yet received in cash. Accrued revenue is important for accurate financial reporting, as it ensures that revenue is recognized in the period in which it is earned, regardless of when the cash is received.

Payments 59

Payments SaaS Payments Payment Services Subscription 59

SaaStr

APRIL 20, 2024

The current business model for software companies involves spending a significant portion of revenue on sales, regardless of available tools and automation. Once a double-digit percentage of the core customer base has heard of the company, it’s time to invest in brand marketing.

Sales Hiring 260

Sales Hiring Startup Marketing Technical Review 260

User Pilot

MARCH 20, 2024

This article will go through 13 software monetization solutions to help your software product create great revenue streams and drive product growth. TL;DR Software monetization helps generate revenue using various new business models to reinvest in development and enhancements.

Software 59

Software Revenue Strategy Advertising 59

Totango

JUNE 15, 2022

All companies are going through the exercise of evaluating their investments, deciding what to cut and what to keep, what strategies to use, and simply, how to weather the storm. We’ve been here before, however, and we know that during uncertain times, protecting your customer base is the most important thing you can do for your business.

Customer Success 101

Customer Success Investment Acquisition Communication 101

SaaStr

JULY 5, 2023

New Workloads Are Only a Small Percent of Today’s Revenue, But Are The Majority of Tomorrow’s. I like this chart a lot showing both the awesome power of high NRR, and also how you have to invest in customers that scale with you over time. New workloads, new uses of Mongo are actually just a small percent of revenue.

Scale 185

Scale cloud efficiency Cloud Business Model 185

Sixteen Ventures

AUGUST 14, 2022

The people in charge of your company – the Executives, Board, and Investors – want to improve a metric called NRR (Net Revenue Retention or NDR, Net Dollar Retention, if you prefer) for one very simple reason: it plays a direct role in the value of the company. What is NRR? Talk about efficient growth! Decrease Contraction.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

Casey Accidental

NOVEMBER 13, 2019

SAAS-like: any number of different models where a business sells software to businesses online, but does not charge via a subscription e.g. transactional or pre-revenue. Why Changing Business Models and Customers is Always Hard. Slack, Adobe, Atlassian. 1 Saturated Growth in SAAS. Old habits die hard.

Marketplace as a Service 106

Marketplace as a Service Business Model Business Underperforming Technical Team 106

SaaStr

NOVEMBER 30, 2023

This is the stage where best-in-class companies can double or triple revenue in the first few years of growth. This might feel early to some, but on average, the sales leader at the time of IPO has been with the company for around three years to have time to build out the maturity and sophistication in that revenue repeatability.

Scale 237

Scale Sales Hiring Scaling Outsourced Development 237

OpenView Labs

FEBRUARY 7, 2019

Freemium , a combination of “free” and “premium” is a business model used widely by software companies to promote product led growth. If that seems dubious to you, think again; countless companies, including DropBox, Hulu, LinkedIn and MailChimp, have seen major success with this model.

Business Model 62

Business Model Business Consulting Education 62

Tom Tunguz

AUGUST 26, 2020

Today, the company is a massively successful SaaS business and another example of the flywheel business model that creates demand at the individual user and leverages that interest to sell department and company-wide contracts. TTM Revenue, $M. Revenue Growth. S&M Spend / Revenue. SmartSheet. SmartSheet.

Payment Solutions 363

Payment Solutions Payments Outsourced Development Payment Services 363

Casey Accidental

OCTOBER 20, 2020

This is part two of a three part series on sequencing business models. Casey’s first sequencing business models essay talked about the transition from a SaaS business model to marketplace business model, and why it’s so difficult. This essay is a collaboration with Gilad Horev.

Marketplace as a Service 52

Marketplace as a Service Business Model SaaS Payments Payments 52

SaaStr

AUGUST 10, 2022

Cloud revenue growing 55% — and Atlassian reaffirms 50% Cloud growth for 2023 and 2024 also! 8,800 employees, so an impressive ~$350,000 in revenue per employee. This is the secret sauce to Atlassian’s business model. 20% growth in customer accounts leads to 36% revenue growth.

Scale 229

Scale Headcount Cloud Business Model 229

Baremetrics

SEPTEMBER 30, 2021

The pre-revenue startup phase has a host of stresses that hopefully disappear as the company begins to earn revenue. Depending on the amount invested, it is possible that all members of the team are working full time jobs to support themselves and then doing that again to push their startup onto the market. Table of Contents.

Payments 110

Payments Revenue Startup Development Team Review 110

Tom Tunguz

JUNE 26, 2022

The market values COIN, Coinbase’s stock, and UNI, Uniswap’s token at about 3x trailing 12-month revenues. As the market has corrected, so have the trailing 12-month revenues (TTM)/Market Cap multiples. Just how comparable are these businesses? Coinbase and Uniswap generate billions in revenue.

Benchmarks 273

Benchmarks Headcount Government Business Model 273

Blulogix

OCTOBER 11, 2023

5 Ways Managed Services Providers (MSPs) Add Top-Line Revenue By BluLogix Team Don’t forget to sign up now to learn more about how to implement usage based pricing models in our upcoming webinar with MGI Research. Managed Service Providers (MSPs ) are continually seeking new ways to increase their top-line revenue, and for good reason.

Revenue 52

Revenue Management Cybersecurity Healthcare 52

SaaStr

FEBRUARY 20, 2023

Underrated: How great of a business model SaaS is. But one thing no one talked about was how the power and magic in recurring revenue can make a $100,000,000 exit magical if you are capital efficient. If your NRR is over 100%, that’s a kind of magic if you invest in it. 1,000+ Unicorns bloomed, hundreds of them in SaaS.

Acquisition 303

Acquisition Startup Business Model SaaS 303

Casey Accidental

OCTOBER 27, 2020

This is part three of a three part series on sequencing business models. In part two of our Sequencing Business Models series , we talked about the different types of marketplaces and what needs to be built to be effective in each of them. For extension platforms, this can become a significant part of the business model.

Payments 56

Payments Business Model Payment Solutions SaaS Payments 56

SaaStr

JUNE 8, 2023

Figuring out your very first sales comp plan when you don’t have a repeatable process or much revenue is confusing. but You don’t have the capital to invest here … the rep has to be accretive. but You don’t have the capital to invest here … the rep has to be accretive. And The business model does have to work.

Compensation 209

Compensation Scale Sales Business Model 209

Stax

APRIL 18, 2024

Independent Software Vendors (ISVs) and Software-as-a-Service Providers (SaaS) operate within the same market, thus creating a push-and-pull revenue dynamic. While they operate under different business models, ISVs and SaaS share similarities in software development, cross-platform accessibility, and industry reach.

Outsourcing Services 88

Outsourcing Services SaaS Payments Payment Services Payment Methods 88

Tom Tunguz

NOVEMBER 8, 2022

Three Arrows borrowed against their crypto holdings to invest in Luna & defaulted on their loans when Luna crashed in value. In short, technology advances have an installation phase when frenzy for an innovation drives speculative investment, with periods punctuated by rapture & collapse. of assets from projects year-to-date.

Technical Review 235

Technical Review Innovation Technology Business Model 235

SaaStr

JUNE 17, 2023

In the ever-evolving landscape of SaaS, Venture Capital, Bootstrapping, and Valuations – understanding market trends and investment patterns is critical. We’ll explain Jason’s take on the recent market fluctuations, highlighting major deals that shaped investment patterns and their effects on valuation trends.

Venture Capital 218

Venture Capital Scale Technical Review Software Review 218

SaaStr

NOVEMBER 15, 2022

This flexible mindset creates just the right conditions for embracing evolving business models and new metrics. A general understanding of the SaaS business model grew as the SaaS sector matured. as a common language to analyze a cloud business. Recurring Revenue = 90% +. Gross Margin = 70% +. ASP = $30K +.

Metrics 218

Metrics Machine Learning Artificial Intelligence Technical Review 218

Techsnyder

DECEMBER 19, 2021

SAAS CEOs and CROs are always on the prowl for one thing for sure and that is about how do I increase my recurring revenue and profitability. Recurring is the key for profitable sustenance of the SAAS business model. Following are the plausible ways of achieving the same.

Revenue 52

Revenue SaaS Acquisition Outsourced Development 52

SaaStr

FEBRUARY 27, 2023

They credit this growth to their global team, a switch to an enterprise business model switch, and flexible work operations. Additionally, they had to figure out how they would sustain the revenue stream to retain the staff. When StoryBlok got to this stage, they made the switch from a self-service to an enterprise model.

Scale 199

Scale Sales Hiring Sales Recruiting Scaling 199

SaaStr

MAY 25, 2022

No one built a business solely on metrics like TAT, LTV, etc., Investors will invest in your business if: You have a strong brand. Your top-line revenue is growing. The Sword: a product-led growth business. Every successful business you admire—Google, Facebook, Microsoft, Apple, et al.—was

Scale 252

Scale Marketplace as a Service Business Model Advertising 252

SaaStr

MARCH 29, 2023

Xero’s Global Chief Strategy Officer, Damien Tampling, takes a philosophical look at some aspects and nuances to consider wherever your business is on this journey. Over the last couple of years, Xero has doubled revenue and operating revenue, tripled annualized monthly recurring revenue, and quadrupled lifetime value.

Sales Hiring 182

Sales Hiring Scale Strategy Metrics 182

SaaStr

OCTOBER 17, 2022

If you’re only investing in sales and marketing, you’re missing a huge revenue opportunity. Determine how much business each CSM can handle. However, your business model will dictate how large the book of business is for each CSM. Support is transactional, Success is a relationship.

Customer Success 227

Customer Success Sales Hiring Scale Leadership 227

SaaStr

NOVEMBER 25, 2022

They demonstrate spectacular growth and expansion while revolutionizing and disrupting industries with new business models. Atlassian’s Chief Revenue Officer, Cameron Deatsch, walks us through how Atlassian grew over the course of 20 years and became one of the most successful startups today. How Atlassian does business .

Scale 227

Scale Scaling Marketplace as a Service Entrepreneurship 227

ProfitWell

NOVEMBER 6, 2019

The subscription revenue model is hardly new. It’s simple: the subscription revenue model benefits both customers and companies. Customers enjoy the convenience of auto-renewals and having access to a high-value offer for a low ongoing investment. What is the subscription revenue model?

Payment Features 74

Payment Features Payments Subscription Revenue 74

Clouded Judgement

NOVEMBER 10, 2023

Either way - it’s clear these models are becoming cheaper and more effective, which is an exciting future for AI! I think we’re about to see an explosion of good business model AI applications in the near future. Revenue multiples are a shorthand valuation framework. 2024 will be the year of AI applications!

Cloud 183

Cloud Artificial Intelligence AI GCP(Google Cloud Platform) 183

Stax

FEBRUARY 21, 2024

And it worked; the Model-T was the most-produced car in the world until 1975. So, of course when it came to revenue-driving activities, Ford knew that success in marketing—and business—wasn’t about how much your marketing spend is, but how efficiently you spend it. This is where the SaaS Magic Number becomes particularly handy.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

SaaStr

FEBRUARY 20, 2024

In a recent Workshop Wednesday, Tolithia Kornweibel, CRO, and Jamie Edwards, Head of Go-to-Market Operations and Tools, share how Gusto maximizes revenue so that you can do the same. Their hope in sharing this model is to help fellow revenue professionals grow their businesses similarly.

Scale 215

Scale Sales Marketing Construction 215

SaaStr

JULY 16, 2022

With >50% of new revenue acquired from zero-cost marketing, i.e. viral, ether, word-of-mouth, whatever … because these compound. Well it means two things: >> First, that your SaaS product’s customer base (and revenue) is compounding. And invest. ARR/MRR Growing >=100% a year, annualized.

Scale 263

Scale Venture Capital SaaS Branding 263

SaaStr

JUNE 20, 2022

As Allin explains, “In telling your story, [communicate] your thesis on why you think your company needs to exist, and why you think there is a huge market opportunity…[be] very clear about what your product currently accomplishes, the product roadmap that’s ahead, and the business model that you’re going to use to monetize that.”.

Venture Capital 200

Venture Capital Management Business Model Investment 200

SaaStr

SEPTEMBER 20, 2023

A Pivot From Growth At All Costs To Driving Profitability The Cloud model of recurring revenue, low marginal distribution costs, and strong net dollar retention dynamics is possibly one of the best and most resilient business models ever invented. Bessemer believes the top private Cloud companies will follow suit.

Cloud 250

Cloud Payments Software Review Payment Solutions 250