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Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual?

SaaStr

Annual contracts combined with prepaid cash are a huge benefit, when done right: You get all the cash up-front (this is how I went cash-flow positive in fact) — IF you can collect it a timely fashion; and Your churn almost by definition goes down, at least nominal churn. It’s how big company procurement and budgeting processes work.

SaaS 258
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Payment processor: Definition, types, and examples

Payrix

It allows software companies to expand beyond their core subscription-based revenue models by seamlessly offering their customers new fintech products such as funding, deposits, loans, payment cards, and more. How do payment processors secure payments? Fraudsters are everywhere, and theyre getting smarter.

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Master merchant: Definition, types, and examples

Payrix

The master merchant model is common in industries that involve marketplaces or platforms with multiple sellers or service providers.

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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

Most public companies don’t disclose ARR (and when they do, it’s often not the same definition of ARR as we use for private companies). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4. Because of this we have to use an implied ARR metric.

Cloud 277
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The Five Flavors of ARR - New Definition, Same Great Multiple

Tom Tunguz

There’s a trend in pitch decks and startup pitches I’ve been watching - the commingling of metrics definitions, especially ARR. The valuation multiples on annual recurring revenue are the highest across startup categories. Over time, the definition of ARR has slackened.

SMB 279
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Recurring Payments: Definition and Implementation Best Practices

Stax

We can see this trend in action in the realm of payment processing with the advent of recurring payments, also known as automatic payments. Industry data shows that subscription-based businesses are growing 3.7x So, let’s dive into the realm of recurring payments and how they can benefit your business.

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5 Interesting Learnings from UiPath at $600,000,000 in ARR

SaaStr

But it’s definitely a Cloud company that benefitted from the dramatic growth in Cloud of the past 5+ years. ARR uses to mean true recurring revenues. Today, it’s definition has … loosened. Merely to revenue that generally recurs. Is it really SaaS? We can debate that. 5 Interesting Learnings: #1.