Clouded Judgement

SEPTEMBER 12, 2023

Q2 earnings season for cloud businesses is now behind us. Extra pressures around optimizations still exist, however gross churn levels have stabilized, and commentary on earnings calls suggest conversations around new bookings are starting to pick up. We will see this show up in revenue figures in a quarter or two.

Cloud 169

Cloud Software Benchmarks Retention 169

SaaStr

MAY 22, 2024

OK Gartner is NOT a SaaS or Cloud company. About $1m Quotas for 5,000 Sales Reps Gartner is split into two divisions, and interestingly, both have quotas of about $1m per rep. #2. About 104% Effective NRR Gartner sees about -18% gross revenue churn, but price increases add +3% back, and additional research and purchases add +19%.

Revenue 219

Revenue Enterprise Cloud Pricing 219

SaaStr

DECEMBER 27, 2023

So is it possible to be too efficient in SaaS and Cloud? Digital Ocean is only growing 16% now at $700m ARR, and churn is up and NRR down. Still Pushing ARPU Up, Churn Stable — But NRR Way, Way Down This Year Digital Ocean has small customers and tiny ARPUs, but pushing the ARPU up a bit has a huge impact on a percentage basis.

Scale 238

Scale AWS Azure Cloud 238

Clouded Judgement

APRIL 12, 2023

Q4 earnings season for cloud businesses is now behind us. As you can see from the data below most cloud businesses beat the consensus estimates for Q4. This quarter more than half of cloud software businesses missed next quarters consensus. They do this to set themselves up to consistently beat estimates, demonstrating momentum.

Cloud 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

JUNE 20, 2023

Q1 earnings season for cloud businesses is now behind us. The real headwinds to software (tougher expansion, longer sales cycles / procurement, slower new business, budget crunches / RIFs, etc) started last August. But what we’re really looking for is budgets expanding, shortening sales cycles, less pressure on expansion, etc.

Cloud 161

Cloud Software Benchmarks Scale 161

Sixteen Ventures

JULY 17, 2020

Is 5% a good monthly SaaS Churn Rate? Read on to learn the answer… As a consultant to SaaS and Cloud providers that are looking to grow, I get asked what an acceptable SaaS churn rate is all the time. ” In 2020 I just say, “let’s make churn a non-issue.” Monthly vs. Annual Churn Rates.

Churn 133

Churn SaaS B2C Pricing 133

Clouded Judgement

DECEMBER 20, 2022

Q3 earnings season for cloud businesses is now behind us. As you can see from the data below most cloud businesses beat the consensus estimates for Q3. This quarter more than half of cloud software businesses missed next quarters consensus. They do this to set themselves up to consistently beat estimates, demonstrating momentum.

Cloud 130

Cloud Software Review Software Benchmarks 130

SaaStr

JANUARY 22, 2021

Q: Your sales manager is under great pressure to increase sales. At a recent meeting of the entire sales staff, this person said, “We have to hit our numbers no matter what it takes!” A bit more on this here: 5 Tips To Minimize “Churn and Burn” Behavior in Your Sales Team | SaaStr.

Sales 256

Sales Churn Pricing Cloud 256

SaaStr

JANUARY 17, 2023

Sales-led vs. product-led is a hot topic right now, and Jason Eubanks, Chief Revenue Officer of Harness, shares the answer during this week’s Workshop Wednesday — held every Wednesday at 10 a.m. What’s his response to startups figuring out which strategy to begin with, product-led or sales-led? “It How do you achieve both?

Startup 235

Startup Sales Sales Funnel Education 235

SaaStr

FEBRUARY 27, 2021

Its Classic Sales/CRM Product is Now Just Its Third Largest Product. This trend has been true for a while, and now both its Service Cloud and its Platform group are bigger and faster growing than the classic CRM product we all know and use. EMEA sales not only crossed a $4.5B Churn Still a Bit Elevated Since Covid.

Deferred Revenue 297

Deferred Revenue Cloud Churn Scale 297

SaaStr

JANUARY 24, 2024

Mark Roberge , SaaStr fan-favorite and Co-Founder and Managing Director of Stage 2 Capital brought together some of the top CROs in SaaS during the SaaStr Annual to share some of their greatest learnings and pivotal moments leading some of the Cloud 100 SaaS companies. How do you diagnose and solve churn?

Scale 238

Scale Sales Hiring Scaling Revenue 238

SaaStr

JANUARY 27, 2021

We’ve talked a ton on SaaStr over the years on how to make sure your VP of Sales and top hires really work out. We can pretty much summarize a lot of it into the following: Your VP of Sales should have lots of experience selling at your average ACV. for that type of sale. That they are the right ones. Ask who they are.

Sales Recruiting 321

Sales Recruiting Sales Hiring Scale Sales 321

SaaStr

APRIL 10, 2023

It wasn’t a sales call. Yes, sales reps will tell you they close the most deals of the year at Dreamforce. And the key difference market researchers say between Behavioral and Attitudinal loyalty isn’t what you’d expect – the churn rate. The logo churn rate is often similar in the short-term.

Airlines 253

Airlines Cloud Market Research Customer Success 253

SaaStr

JANUARY 2, 2021

Again, the latest crop of Cloud IPOs shows SMBs seem to have no limit in terms of TAM, with SMB growth at Shopify and Zendesk keeping up with enterprise, and even at Asana, SMB growth is still impressive at $250m ARR. Asana has a hybrid self-serve / direct sales model. We’ve seen this with almost all cloud leaders except Slack.

SMB 351

SMB Enterprise Cloud Churn 351

SaaStr

MARCH 13, 2021

running across multiple clouds. The size and power of the Cloud is just awesome these days. But the $100k-$1m “mid-market” segment isn’t growing as fast as smaller and larger customers … perhaps because sales is whale hunting. Multi-cloud is one of their top accelerants. Mongo shows very.

Scale 307

Scale Outsourced Development Cloud Scaling 307

SaaStr

JULY 25, 2023

Google Cloud Next: Google Cloud Next (now known as Google Cloud Next ’21) is an event organized by Google Cloud to showcase their latest advancements, product announcements, and customer success stories, impacting the SaaS industry. It explores strategies for retaining and expanding customer relationships.

ChatGPT 233

ChatGPT AWS SaaS CTO 233

SaaStr

FEBRUARY 20, 2023

With 100+ public Cloud companies, it’s now a bit clearer that at least after a certain point in time, SaaS vendors have a lot of stability. Second, few SaaS companies past $20m in ARR with negative churn seem to fail. Some do fail, but they are generally ones with low NPS / high churn and other customer issues.

Innovation 310

Innovation Churn Cloud Branding 310

SaaStr

MARCH 22, 2023

So few Cloud software companies have had a more interesting history than UiPath. UiPath has cut Sales, Marketing, and G&A expenses at scale — and generated a ton of free cash-flow because of it. While UiPath hasn’t yet hit the 20%+ that Wall Street wants for Cloud companies at scale, importantly, it’s on the way.

Scale 250

Scale Cloud Scaling Churn 250

SaaStr

JANUARY 20, 2022

You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. Our mission is to build powerful and secure cloud software for subscription businesses of all sizes, with a strong emphasis on good design and ease of use. to unlock growth.

DevOps as a Service 224

DevOps as a Service AI Search Cloud compliance 224

SaaStr

NOVEMBER 24, 2021

The SaaS sales model seems so well-established, as hundreds of founders build their businesses and raise funding. Mark Roberge, Founder of Stage 2 Capital and Senior Lecturer at Harvard Business School, shares insights from his years of experience into common SaaS sales missteps and how you can avoid them.

Sales Hiring 201

Sales Hiring Scale Compensation Sales 201

SaaStr

MARCH 1, 2022

Atlassian has gone almost 100% Cloud since then, and has held up nicely in the overall public markets even as others have taken bigger hits. Not having a traditional sales team sure helps. Cloud product pricing went up 5% a year last year, and legacy server products went up much more. Transition to Cloud takes time at scale.

Scale 307

Scale Marketplace as a Service Headcount Cloud 307

SaaStr

SEPTEMBER 26, 2019

What we learned from ’08-’09 in SaaS: First, SMB churn went through the roof — as SMBs went under much more quickly and often. Anyone processing a lot of SMB and credit-card deals saw churn probably double. We still doubled sales in 2009. Don’t worry about customer success hires and scaled sales reps.

SaaS Payments 279

SaaS Payments Sales Hiring Scale SMB 279

SaaStr

JULY 5, 2023

So some SaaS and Cloud leaders have seen big impacts from the post-Covid hangover, but others have just kept accelerating. That’s about as good as it gets in SaaS and Cloud! Are we near or past the lows in SaaS and Cloud buying patterns? But those accounts grow dramatically over time, and don’t really churn.

Scale 194

Scale cloud efficiency Cloud Business Model 194

SaaStr

SEPTEMBER 29, 2022

Almost everything is going well in SaaS and Cloud these days — except multiples. Channel model and organic approach to SMB and mid-market yields a fairly efficient Sales & Marketing motion. JFrog does have a significant dedicated sales team, but mainly focused on $100k+ deals. Billion as I type this.

Scale 242

Scale SMB Software Development Cloud 242

SaaStr

MARCH 31, 2021

UiPath is one of the most amazing not-really-an-overnight success stories in Cloud, SaaS and software. It was founded way back in 2005 as an outsourcing company, then developed Windows software to automate scripts and more, and turned this into a powerhouse for automating complex functions integrating Cloud and on-prem. ” #5.

Outsourcing Services 362

Outsourcing Services Outsourced Development Payment Features Cloud 362

SaaStr

DECEMBER 27, 2020

New Relic is one of my favorite Cloud stories. Times have changed, the Cloud has gotten a lot bigger, and there are many more vendors, including the red-hot DataDog, to grab mindshare. Do whatever you can to drive up NRR / net negative churn. Today New Relic is worth more than 10x that, at $4.3B. An incredible streak.

Scale 310

Scale Outsourced Development SMB Cloud 310

SaaStr

JANUARY 5, 2022

In 2015, SaaS cloud-based content management tool Box went public. We restructured all of our messaging around our Content Cloud to create a simplified go-to-market message that says what it does, and does what it says. At Box, we’ve found a lot of success in getting customers to adopt new features within Content Cloud.

Scale 269

Scale Scaling Sales Hiring Software Review 269

Tom Tunguz

NOVEMBER 25, 2020

The rumor mill churns with whispers Salesforce will acquire Slack. Microsoft has amassed the most extensive channel for SaaS companies, and each of these vendors pushes teams to current customers, many of whom are moving to the cloud and relying on Microsoft for guidance. That’s justification for an upgrade.

SaaS 279

SaaS Finance Cloud Engineering 279

Teamgate

OCTOBER 10, 2019

Reducing sales churn is the holy grail of every sales director. . The more customers you lose – churn – the less likely it is that your company is going to grow significantly any time soon. If your business is churning customers more frequently than you would expect, you need to find out why, and fast.

Churn 40

Churn Sales Software Review Sales Funnel 40

SaaStr

MAY 23, 2022

The Cloud is bigger than ever, CIOs are buying more than ever, and SaaS is still on a roll. Let go of your bottom 20% of sales reps, concentrate leads in the best reps. Relatively speaking, the easiest sales are from your existing customers. Make sure your sales comp plan rewards the high performers. Spot on as always.

Sales Hiring 287

Sales Hiring Management Airlines Venture Capital 287

SaaStr

JANUARY 19, 2023

You also get access to our drag and drop, visual integration builder, allowing sales teams to directly create integrations for clients, or marketing teams to create actionable content that can easily be shared and installed. Cyclr can be deployed in the cloud or within your own infrastructure, keeping your architecture in your hands.

Sales Hiring 225

Sales Hiring Scale Cloud Churn 225

Full Session

DECEMBER 4, 2022

For this reason, companies must conduct a customer churn analysis and keep a finger on their churn rate – a statistic that shows the percentage of customers who stopped making purchases from a company. To conduct customer churn analysis, you need specialized tools that help you collect user behavior data. What is customer churn?

Churn 52

Churn Payment Services Payments SaaS Payments 52

SaaStr

SEPTEMBER 3, 2023

Almost all Cloud and SaaS leaders have become profitable. How SaaS Is Fairing in the Macro Economy It’s crazy how much more efficient the leaders in SaaS and Cloud have gotten in one year. So, this person tweaks the numbers in Q4 to show sales increasing, costs staying consistent, and burn going down. Lemkin asked him.

Sales Hiring 239

Sales Hiring Headcount Finance Technical Review 239

SaaStr

DECEMBER 14, 2020

If you already have a few bigger deals under your belt, but most are smaller … a few higher-level suggestions: Hire a Very Good VP of Sales that has sold at your “high end” price point. More here: The 48 Types of VP Sales. The best way to make pos-initial sale land-and-expand happen organically is engaged, happy customers.

Scale 291

Scale Sales Hiring Underperforming Technical Team Point of Sale 291

SaaStr

APRIL 28, 2022

And we religiously track the NRR of all public cloud and SaaS leaders in our 5 Interesting Learning series. It’s epic NRR that has fueled UiPath, Twilio, Snowflake, and so many other Cloud leaders. Lazier than almost anyone in sales, even the ones that really only work 20 hours a week. So many of them are — lazy.

Customer Success 221

Customer Success Metrics Scale Retention 221

SaaStr

OCTOBER 31, 2019

Bessemer Venture Partners’ Alex Ferrara takes a look at trends and predictions for the cloud industry in 2019. One of the most popular sessions from SaaStr Annual, this presentation will provides an in-depth look at the cloud computing industry across Europe and globally. Want to see more content like this? A few more.

Cloud 101

Cloud Scale AWS Machine Learning 101

SaaStr

JUNE 5, 2020

With the Salesforce IPO in 2004, we saw the first sign that institutional investors were comfortable with a standard set of SaaS metrics: Churn, sales efficiency , ARPU, LTV, customer acquisition cost , and so on. . The SKYY First Trust Cloud Computing ETF has grown to $3.3 Churn under 10% annually? Why Let Banks In?

Venture Capital 222

Venture Capital Technical Review SaaS Scale 222