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Most SaaS Metrics Really Only Work if You Have 75%+ Gross Margins and 100%+ NRR

SaaStr

So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. But — they are broken if you aren’t really a traditional, 100%+ NRR SaaS company. In particular: Hybrid SaaS with payments and fintech usually has far, far lower gross margins than pure software. It depends.

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5 Interesting Learnings from Bill.com at $220,000,000 in ARR

SaaStr

Bill.com is one of the quiet SaaS success stories. Now they’ve scaled to $200m+ ARR growing 38% selling just to 100,000+ SMBs, solving a hard problem (i.e., automating the back office and payments and billing for SMBs), and doing it with 120%+ NRR. 121% NRR from SMBs — up from 110% at IPO.

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What The Downturn Will Probably Look Like in SaaS

SaaStr

So, despite SaaS multiple and the public markets being at near record highs, we’ve seen things start to … wobble a bit overall in tech: The WeWork IPO simply failed , and the Peloton and Direct Smile IPOs were broken. One of the greatest SaaS companies of all times, but still, it turned out to be mortal. Slack is mortal.

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Customer Churn Rate: How to Calculate and Improve Churn

User Pilot

Tracking your customer churn rate will help you keep tabs on business growth. You will have data sets for analyzing your churn/retention history, which will better position you to make intelligent business decisions. The most common reasons behind high churn rates are: Bad product-customer fit. Poor onboarding.

Churn 85
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5 Interesting Learnings from SurveyMonkey. As It Crosses $300m in ARR.

SaaStr

SurveyMonkey is one of the Old School SaaS companies that has followed an interesting path. days, for years it was run by a tiny team and dominated the self-service side of surveys. That is a similar revenue growth rate to Salesforce’s core CRM product. One worry with SMB and freemium is how big can the market be?

Scale 246
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Top 4 SaaS Valuation Metrics at Different Growth Stages

OPEXEngine

We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace.

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How Nudge Coach reduced customer churn by over 70%

Baremetrics

Anyone managing a SaaS or subscription business is aware of customer churn. That means achieving any essence of “growth” requires replacing lost customers faster than the rate at which they churn. The graph below, taken from our Baremetrics account, shows our customer churn throughout January 2020.

Churn 71