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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. They don’t.

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Only 11% of Public SaaS Companies Sell Just to SMBs

SaaStr

SMB SaaS has a lot going for it: – Millions of them – Short sales cycles – Easier compete. But, it's often hard to get to $100m ARR selling just to SMBs. sell just to SMBs pic.twitter.com/Po1I2aMaBK. So many VCs and others have gotten more and more excited about SMB SaaS. Much higher.

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Scaling The Top SMB SaaS Companies: What It Takes with GGV Capital Managing Director Jeff Richards and GGV Capital Partner Tiffany Luck (Pod 647 + Video)

SaaStr

Throw in the rise of social media and mobile web payment systems like Stripe and Braintree, and something revolutionary was at our doorstep. 2020 wasn’t the only reason small business owners adopted software solutions, but it sure sped up the process. Efficient Go To Market There are a lot of ways to GTM as an SMB.

Scale 188
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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. Types of churn rates you should calculate: customer churn rate, revenue churn rate , and involuntary churn rate.

Churn 94
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5 Interesting Learnings from Squarespace at $700,000,000 in ARR

SaaStr

Monetizing ecommerce via subscriptions, but not payment processing. Billion in GMV processed, up a stunning 91% from 2019. But in contrast to Wix and Shopify, it doesn’t keep much of the revenue from merchant services itself. Rather, it charges for software subscriptions to take payments on its websites.

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5 Interesting Learnings from Expensify at $140,000,000 in ARR

SaaStr

1M in ARR per employee could be a new efficiency record at IPO for SaaS. GRR of 86% and NRR of 119% are very impressive for SMBs … although they only count customers with 5+ seats. Their tiniest customers still have higher churn, as with almost every other SaaS company. 5 Interesting Learnings: #1. In one year.

Scale 289