SaaStr

MARCH 14, 2024

So RevenueCat (where I was fortunate enough to be the first investor) now is the embedded mobile subscription API for 30,000 (!) Their 2024 State of Subscription Apps Report is out , and here were my top learnings: #1. 70% of Mobile Subscription Apps Now Offer Free Trials, At Least in Part. Billion in tracked revenue.

Mobile 315

Mobile Subscription Payment Features Pricing 315

SaaStr

MARCH 31, 2021

Much of UiPath’s revenue is in annual and multi-year software licenses and maintenance, somewhat more “old school” enterprise software revenue. But since the effective NRR is still 145%, ARR-style metrics still work. Even if a lot of the revenue isn’t truly recurring SaaS revenue. ” #5. .

Outsourcing Services 362

Outsourcing Services Outsourced Development Payment Features Cloud 362

How To Buy Saas

DECEMBER 20, 2024

Keeping track of the accounting for SaaS businesses can be challenging because of the subscription model that they operate on, and that is why most companies opt for cloud-based software solutions to smoothen the processes. This is an important process as you need to send invoices to customers on time and also collect revenue effectively.

Payment Services 52

Payment Services SaaS Payments Payment Solutions Payment Features 52

Clouded Judgement

MAY 16, 2025

As you all know, one of my favorite metrics to look at is net new ARR added in a quarter. For those who don’t, I will take quarterly subscription revenue x 4 as a proxy for ARR. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Trends 146

Trends Cloud Subscription Payment Features 146

SaaStr

FEBRUARY 14, 2023

In this week’s Workshop Wednesday , Salesforce Ventures Investor, Jessica Bartos, shares the 5 metrics every SaaS company should care about in any market environment, especially the one we’re currently in. Growth Is Still Number One Growth is still the number one metric, but it’s not the only one. You do that by showing momentum.

Metrics 257

Metrics Marketing SaaS SMB 257

Clouded Judgement

MARCH 21, 2025

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Even a DCF is riddled with long term assumptions. Top 5 Median: 18.4x

Cloud 189

Cloud Pricing Subscription Payment Features 189

Clouded Judgement

DECEMBER 20, 2024

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Even a DCF is riddled with long term assumptions. Top 5 Median: 18.4x

Cloud 146

Cloud Banking Subscription Payment Features 146

SaaStr

FEBRUARY 2, 2025

Companies need to: Ensure secure data handling Maintain clean data for model training Integrate effectively across multiple systems Enable real-time data access where needed Evolution of Business Models The integration of AI is driving changes in how vertical software companies approach pricing and business models: Pricing Strategies Traditional subscription-based (..)

AI 202

AI Technical Review Artificial Intelligence Systems Review 202

Incredo

JULY 14, 2019

Whether you are a startup owner, a manager of a growing business or the CEO of an established company, you might find yourself asking questions like “ Should our SaaS subscription model be monthly, annually or both ?” or “ What are the best tips I can get in terms of annual vs monthly subscription models ?”.

Payment Features 184

Payment Features SaaS Payments Payment Methods Subscription 184

Clouded Judgement

MARCH 7, 2025

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Even a DCF is riddled with long term assumptions. Top 5 Median: 17.2x

Cloud 159

Cloud Forecasting Subscription Payment Features 159

Clouded Judgement

OCTOBER 11, 2024

Coming out of that, every company from the largest enterprise to the smallest startup started thinking very critically about cost optimizations. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Where was wasted spend with low ROI.

Cloud 170

Cloud Cost optimization & reporting GCP(Google Cloud Platform) Software Review 170

SaaStr

SEPTEMBER 25, 2024

What data and metrics do you need to convince SaaS investors you’re in good shape and aligned with what they care about? These metrics are more targeted to those preparing for a Series A or B round and could make the difference between an excited-to-invest-in-you investor and a pass. What Goes into That Sheet? It’s pretty easy.

Metrics 177

Metrics Sales Hiring Retention Churn 177

Clouded Judgement

FEBRUARY 14, 2025

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Even a DCF is riddled with long term assumptions. Top 5 Median: 24.0x

Cloud 146

Cloud Software Subscription Payment Features 146

FastSpring

DECEMBER 9, 2022

SaaS billing software automates one or more of the various aspects of the recurring billing process — payment processing, fulfillment, dunning, and more. You’ll still need a separate solution for payment processing, taxes, chargebacks, and more. 3 Subscription Management Software. 3 Payment Processors.

Payment Services 147

Payment Services Merchant Services Payment Methods SaaS Payments 147

Clouded Judgement

JUNE 6, 2025

ARR (annual recurring revenue) is a hallmark SaaS metric rooted in predictability. However, many companies misuse ARR and count forms of non-recurring revenue as ARR, confusing the metric. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 130

Cloud Technical Review Software Review Technical Advisors 130

Subscription Flow

FEBRUARY 27, 2024

Subscription pricing with the help of automated billing software has transformed many industries and provided businesses with a dynamic way to generate revenue, especially in the SaaS space. SaaS companies’ success is largely dependent on their use of subscription billing.

SaaS Payments 105

SaaS Payments Payment Services Payments Payment Solutions 105

SaaStr

APRIL 28, 2019

But also — Slack has gone Enterprise. Way Enterprise. The S-1 is full of enterprise case studies, from Oracle to Fox to Splunk. All the great SaaS companies IPO’ing now have strong revenue retention, whether SMB or enterprise focused. Free also serves as a hunting ground for sales to find prospects and leads.

Scale 279

Scale Venture Capital SMB Enterprise 279

SaaStr

JANUARY 11, 2024

I mean, Canva’s metrics for example are just awesome. Sometimes in great ways — forcing B2C subscription businesses to relentlessly provide a great end-user experience. Every month, the meal kit, the clothing, the game subscription, the video subscription almost has to be better than the month before.

Retention 311

Retention B2C B2B Churn 311

SaaStr

OCTOBER 21, 2023

Once the customers get large enough, and you have a brand … in the enterprise, for six figure deals … almost all will want to pay annually via invoice. Even as its gone pretty enterprise. 20%+- will pay annually to save money. Most would rather skip the discount and pay less now.

Data 276

Data SMB Payment Features Churn 276

SaaStr

OCTOBER 14, 2021

It was exciting as it scaled to be a more “enterprise” Github at first. 90% of GitLab’s customers pay by subscription — but most still self-manage the deployment. This is an interesting segmentation of core metrics. So GitLab is one of those ones that sort of … always was doing well.

Outsourced Development 66

Outsourced Development Software Development Innovation Cloud 66

Clouded Judgement

DECEMBER 1, 2023

General purpose GenAI tools dominate the market today, but the tooling layer is starting to emerge to allow enterprises to fine tune models to their specific data. This was repeated quite a few times AI tends to be additive budget for large enterprises. I created this subset to show companies where FCF is a relevant valuation metric.

AWS 302

AWS Cloud AI Search Cost optimization & reporting 302

SaaStr

DECEMBER 14, 2020

“Churn” is a term we all use in SaaS as a core metric, but its roots, as near as I remember and can tell, come from our B2C colleagues. Folks churn out of their Verizon plan, their Netflix subscription, etc. In a low-end subscription model for a tool, not a solution (e.g., the dynamics are similar.

Churn 362

Churn Sales Hiring Systems Review B2C 362

SaaStr

OCTOBER 5, 2022

Combine product-led and enterprise-led growth. Combining product-led growth (PLG) with enterprise sales is a multiplier effect. When engineered right, combining PLG motions with enterprise sales accelerates growth by engaging with different customers in precisely the way they want. Be clear on your new metrics.

VP of Engineering 245

VP of Engineering Scale Scaling Sales Hiring 245

FastSpring

DECEMBER 7, 2022

Chargebee is a robust subscription management platform. However, there are certain aspects of collecting recurring payments that you would still be responsible for when using Chargebee, such as: Connecting to payment gateways manually. Zoho Subscriptions. Remitting taxes at the end of the year.

Payment Methods 148

Payment Methods Merchant Services Payment Services Payments 148

Blulogix

MARCH 12, 2025

By BluLogix Team The Future of Monetization: Why Usage-Based Billing is the Key to Scalable Growth Introduction Introduction Subscription models have dominated the digital economy for years, but in 2025, usage-based billing is emerging as the smarter, more scalable approach. Automate Billing & Invoicing to prevent revenue loss.

Payment Features 59

Payment Features AI Search B2B AI 59

FastSpring

JANUARY 27, 2022

Note: FastSpring offers advanced subscription management services that support free trials, monthly and annual paid plans, proration, discount management, and more. Use the wealth of data you have on your customers to analyze your churn metrics. How Castos upsells subscription tiers. Learn more here. Learn more here.

Merchant Services 146

Merchant Services Payment Services SaaS Payments Payment Solutions 146

Blulogix

MARCH 25, 2024

By BluLogix Team Mastering the Art of Complex B2B Recurring and Subscription Billing: Navigating Financial Process Complexity in B2B Subscriptions The financial backbone of B2B subscription models rests on efficiently managing complex processes spanning billing, payments, revenue recognition, and reporting.

Payment Services 94

Payment Services Payment Features Subscription B2B 94

Clouded Judgement

JULY 16, 2024

The Digital Finance Cloud empowers the Office of the CFO to form a comprehensive, dynamic and predictive view of the entire enterprise, providing corporate leaders the control, visibility and agility required to proactively adjust business strategy and day-to-day execution.” You can some metrics below based on different share prices.

Benchmarks 298

Benchmarks Data Machine Learning Artificial Intelligence 298

SaaStr

MARCH 17, 2020

Pendo for Startups” gives companies access to the product usage data that today’s investors consider alongside business metrics as they vet deals, as well as sentiment and guidance tools to improve product usage and adoption. Chargebee offers subscription billing and revenue operations for fast-growing B2B SaaS companies. ProfitWell.

Sales Hiring 215

Sales Hiring Scale Payment Features Marketplace as a Service 215

Clouded Judgement

FEBRUARY 7, 2025

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Even a DCF is riddled with long term assumptions. Top 5 Median: 22.2x

Systems Review 146

Systems Review Cloud AI Artificial Intelligence 146

Tom Tunguz

JANUARY 26, 2021

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. One of the key terms is ARR, which is annual recurring revenue. But let’s set that aside.

SMB 279

SMB Startup Trends Subscription 279

Clouded Judgement

MARCH 29, 2024

Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Even a DCF is riddled with long term assumptions. Top 5 Median: 17.8x

Cloud 287

Cloud Forecasting Subscription Payment Features 287

Kellblog

OCTOBER 30, 2022

Unlike Meritech Public Comps , where you can see metrics for the best [1], public SaaS companies, this private company data is somewhat harder to come by (the only other source that springs to mind is RevOps Squared ) and, for most of us, it provides much more realistic comparables than Meritech [2]. Free cashflow (FCF) margin of -5%.

Metrics 145

Metrics SaaS Benchmarks Churn 145

Clouded Judgement

JULY 12, 2024

And very well may lead to better “other” metrics like retention or churn. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 291

Cloud AI Investment User Experience 291

Stax

FEBRUARY 19, 2025

Companies can capitalize on: Subscription-based integrations , where users pay extra for advanced functionalities. Gartner predicts that, through 2022, 60% of organizations will prioritize transitioning to a composable enterprise model. You can also manage one-time or recurring payments and create professional customizable invoices.

Payments 88

Payments Merchant Services Payment Services Payment Solutions 88

Clouded Judgement

MARCH 1, 2024

Update on Q4 Earnings One metric I love tracking in net new ARR added in a quarter. Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 319

Cloud AI Investment Metrics 319

SaaStr

NOVEMBER 28, 2022

was pretty simplified, mostly made up of annual or monthly subscriptions. From 2010 until 2015, the SaaS world was becoming more complex with the introduction of static bundles and recurring revenue as an addition to the annual/monthly subscription model. Align on success metrics. Era 2, SaaS 2.0: Era 3, SaaS 3.0:

Scale 246

Scale Finance Sales Hiring Scaling 246