article thumbnail

The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long

SaaStr

Customers don’t expect as much in terms of security, compliance, etc. But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. Endemic churn. The type of churn you almost can’t do anything about. And then 3% a month churn cuts your growth in half.

SMB 355
article thumbnail

Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. On top of that, churn and expansion tend to be quite predictable with low volatility. Why do software companies get “credit” simply for revenue?

AI 183
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The CCPA Compliance Checklist: Ensuring Data Protection and Privacy

Scytale

As a business leader, ensuring your company’s compliance with privacy laws like the California Consumer Privacy Act (CCPA) is critical. The CCPA sets strict standards for data compliance , collection, storage, and sharing, to protect consumers’ personal information. Implementing CCPA compliance reduces this risk.

article thumbnail

5 Interesting Learnings From Avalara at $600,000,000 in ARR

SaaStr

Avalara manages a big problem — tax and related compliance automation. That’s the power of compounding revenue right there: 5 Interesting Learnings: #1. And importantly, while the very largest partners support multiple vendors for tax compliance, the vast majority of small partners just deploy Avalara.

Scale 330
article thumbnail

The Top 10 Important Finance Mistakes First Time Founders Make

SaaStr

Was it misunderstanding bookings vs. ARR vs. GAAP revenue, was that the issue? With early revenue, you start thinking about churn and scalability of every aspect of the business, including product, infrastructure, customer support, sales and marketing. Mistake #1: Bookings are not revenue. Your focus expands.

Finance 330
article thumbnail

5 Best Paddle Alternatives in 2024

FastSpring

FastSpring includes global payment processing and recurring revenue management, of course, but the platform also takes care of the end-to-end checkout process, including optimization of your checkout flow, collecting and remitting sales tax and VAT, localization, fraud prevention, global compliance, and more. Digital invoices.

article thumbnail

Understanding Subscription Revenue Management with a New Approach

Subscription Flow

Customers can pay for goods and services according to their consumption ( pay-as-you-go ), scale their service usage up or down in accordance with business needs, and have their subscriptions automatically renewed thanks to subscription billing and revenue management. What Entails Effective Subscription Revenue Management?