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Benchmarking WorkDay's S-1 - How 7 Key SaaS Metrics Stack Up

Tom Tunguz

Unlike these other companies, WorkDay has employed a huge professional services team in addition in investing massively in their R&D to create a broad suite of products. In 2009 and 2010, the company recognized more revenue from services than subscription. Selling people’s time can’t be leveraged like software.

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Examples of Assets in SaaS

Baremetrics

While a liability is everything the company owes (including, strangely, your deferred revenue ), assets are all the items a company owns. They are all the items owned by a company. Assets can be purchased using owner’s equity or liabilities. Classifying assets Assets can be classified in many different ways.

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Balancing SaaS Growth and Profits to Maximize SaaS Company Valuation

OPEXEngine

If a company expands into a new geography, the benefits of that investment in new sales could take years. For product sales companies, once the sales are made, the investment is repaid more quickly. For SaaS companies, the investment is not recouped until after years of initial SaaS revenues.

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The 14 best SaaS tools: analytics, accounting, pricing, and retention

ProfitWell

Simplify accounting: Accounting can be a far bigger pain in the SaaS industry than other businesses, due to deferred revenue and other delayed revenue forms being common. Accounting software will keep all revenue assets organized. If it doesn’t save you time, then it’s not worth acquiring. Quickbooks.

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The Best SaaS Blog Posts and Resources Library

Chart Mogul

5 Reasons I Hate the Rule of 40 by Mikael Johnsson, SaaS Nordic While not necessarily completely useless, I would strongly argue that R40 is a metric applicable to the world of PE and public markets investing and is not a good metric for assessing the quality of venture-stage companies. Because this drives investment decisions.

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What is GAAP Accounting?

Baremetrics

This often has an impact on SaaS businesses with deferred revenue streams. Matching GAAP principles govern how revenues are matched with expenses. Expenses of a revenue-producing activity are reported when the item or service is sold. More on this topic later!) Who Sets GAAP Accounting Standards?

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Building a Roadmap for Early-Stage SaaS Growth [Webinar]

SaaSOptics

We discuss: How seed and Series A investment criteria differ. The first is really automating the order to cash to renewal process for these businesses as well as providing automated revenue recognition and deferred revenue calculations in an automated fashion. What early stage capital providers are looking for.

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