Remove Definition Remove Payment Features Remove Pricing
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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. And that includes pricing.

SaaS 258
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A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 277
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SaaS Platform Explainer: Definition, Examples, and How to Grow in the Software as a Service Industry

Stax

SaaS operates on a subscription model, making it easier to manage cash flow and reduce upfront expenses. Refine your pricing strategy over time Pricing isn’t a one-and-done decisionit’s a growth lever that evolves with your product, customer segments, and market conditions.

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The False Choice of Prepaid vs. Monthly Contracts

SaaStr

You get all the cash up-front, and your churn almost by definition goes down. But … to go to annual pricing or not … . Nothing is a bigger headache in a Fortune 500 company that having to go back to procurement every single month to get an invoice approved. And as a result, even more chose monthly subscriptions.

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Is it Really ARR? In 2021+, Yes. As Long As NRR is > 100%

SaaStr

So many startups these days are claiming they have “ARR” from revenue that … doesn’t recur. Doesn’t ARR stand for Annual Recurring Revenue? But like “Cloud” and “SaaS”, its definitely has evolved. 50% revenue from software (recurring), 50% from payments (not-recurring). .

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Monthly Recurring Revenue (MRR): Definitions, Formulas And How To Improve It

Stax

For subscription-based businesses achieving consistent and predictable revenue growth is the holy grail. In fact, monthly recurring revenue (MRR) is one of the most important metrics subscription businesses should be aware of. It can also be used to calculate the customer acquisition cost (CAC) and gross margin.

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2Checkout vs. Stripe vs. FastSpring: Comparing Payments, Taxes, and Platform Features (+ Pricing)

FastSpring

FastSpring provides an all-in-one payment platform for SaaS , software, video games, and digital products businesses, including VAT and sales tax management, payment localization, and consumer support. Payment Gateways , Payment Processing , PSPs, MoRs — What’s the Difference? Interested? Is Stripe a merchant of record?

Payments 160