SaaStr

OCTOBER 25, 2024

A rough yardstick is that most enterprise-focused SaaS companies tend to get about 8%-10% of their revenues from professional services. A few data points: At $800m ARR, Qualtrics was still getting 25% of revenue from professional services. At $500m ARR, OneStream gets about 8% of its revenue from professional services.

Investment 292

Investment SaaS SMB Enterprise 292

SaaStr

MAY 2, 2025

“The Last Generation of Human-Only CEOs: Marc Benioff’s Bold Vision for the AI-Augmented Enterprise” Marc Benioff was kind enough to join SaaStr for the first time to do a truly deep dive on what AI means in business software today. It’s a good one. Top 5 Unexpected Learnings: 1.

AI 234

AI Enterprise Scale Airlines 234

SaaStr

OCTOBER 16, 2024

It’s been around for decades but has continued to iterate, expanding into the enterprise, the contact center, and so much more. Even With a Big Enterprise Push for Years, 60% of Revenue Still From Mid-Market and SMB RingCentral closed 20 $1M+ TCV deals last quarter. of revenue in 2021 to 15.7% ARR Now they have $1.5

Scale 278

Scale SMB Compensation Cloud 278

SaaStr

FEBRUARY 7, 2025

With Databricks now one of the largest pre-IPO technology companies, with $10 billion of expected non-dilutive financing and a valuation of $62 billion, Ron’s insights are gold for any revenue leader looking to scale. Our founders focused on adoption first, not revenue, Ron explains. The takeaway? A common mistake founders make?

Scale 169

Scale Sales Hiring Scaling Revenue 169

SaaStr

NOVEMBER 13, 2024

Just not as quickly as overall revenue growth. #4. A third of revenue is from outside the Americas. #5. New Startups and Companies and Enterprise Strong. Klaviyo is seeing strengths in its entrepreneur segment (new companies) and enterprise ($50k+ deals) as noted above. SMB Weaker.

Scale 294

Scale SMB Scaling Enterprise 294

Tom Tunguz

FEBRUARY 26, 2025

They prioritize revenue growth, market share and profit maximization differently. Maximization (Revenue Growth) - maximize revenue growth in the short term. Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

SaaStr

JANUARY 9, 2025

But it had and has a very large channel that sells its product into the enterprise, and a lot of internal resources that support the channel. But as it went toward IPO, 50% of its revenue came from bigger, enterprise deal. Then to sell Dropbox Enterprise, it added several. And it staffed up a very big sales team.

Scale 269

Scale Sales Hiring Sales Headcount 269

SaaStr

MAY 20, 2025

Both started SMB (Monday even more so), and Both have now gone more enterprise (Monday even more) But still with the vast majority of their customers SMB. HubSpot has twice the revenue (and thus twice the ARPU), but also was founded 6 years earlier. Customer Base : ~258,000 customers across 135+ countries Revenue : $2.63

SMB 267

SMB Scale Education AI 267

SaaStr

JUNE 21, 2025

Q1 revenue growth: 39% US commercial: +68% growth Government contracts flowing like water NATO partnerships expanding The insight : When you combine AI that actually works with government customers who have unlimited budgets, you get returns that break traditional SaaS metrics. And defense contractors don’t trade at 10x revenue.

B2B 253

B2B Government Healthcare AI 253

SaaStr

JUNE 20, 2025

The Great Spending Showdown: AI vs SaaS in 2025/2026 — What Every B2B Leader Needs to Know We’re witnessing the most dramatic shift in enterprise tech spending since the cloud migration began 15 years ago. The answer today is: very few. But that could change rapidly as AI tooling improves and more case studies emerge.

AI Search 283

AI Search Artificial Intelligence AI CTO Hire 283

SaaStr

NOVEMBER 6, 2024

Revenue growth is up 21% overall, and subscription growth is up 33% — at almost $5 Billion in ARR. Raising Guidance and Growth Rate for Cloud Revenue To +24% a Year That’s pretty darn impressive growth at almost $5B in ARR, and just as importantly, they’re raising their prediction here. #2. Wall Street is happy.

Enterprise 283

Enterprise Pricing Cloud AI 283

SaaStr

JUNE 16, 2025

revenue run-rate this quarter with 50% YoY growth, making them the fastest-growing infrastructure company in the public software universe. revenue run-rate ending this quarter, growing 50% year-over-year. billion revenue run-rate by July, with year-over-year growth of 50%. in net new revenue this year. Three things: 1.

AI 254

AI AWS Enterprise Scaling 254

SaaStr

JUNE 18, 2025

So Okta rose to rapid growth and IPO as the stand-alone leader in enterprise identity for apps, acquired Auth0 to own it for developers, and now coming up on $3 Billion in ARR, it has settled into a more mature state: $2.75B in ARR Growing 12%, projected to slow to 10% Non-GAAP operating margins of 27% Free Cash Flow margins of 35% (!) $18B

Scale 225

Scale Headcount Outsourced Development Operational efficiency. 225

SaaStr

DECEMBER 26, 2024

Gong has its 2025 State of Revenue out. And a few other data from the report: Gongs enterprise customers see about a 25% win rate, conversion from Opportunity to Closed. You can grab it here. In general, the report ties to what were seeing everywhere in SaaS. Were ending the year in general with stronger growth that the prior year.

Scale 278

Scale Benchmarks B2B Enterprise 278

SaaStr

APRIL 28, 2025

By tracking and targeting diverse industries from day one (even pre-revenue), they discovered that solutions developed for one vertical would spark demand in seemingly unrelated industries. During pre-revenue, they hired ADRs to book demos specifically for product managers to gather feedback before writing code.

Scale 257

Scale Transportation Scaling SMB 257

SaaStr

SEPTEMBER 17, 2024

So two of the great leaders in SMB SaaS, Shopify for e-commerce, and HubSpot for sales, marketing and more, are going more upmarket: HubSpot 100+ seat deals are up 55% Shopify now gets 31% of its revenue from “Plus” or its bigger brands and more enterprise product And yet … they are also both going more SMB as well!

SMB 316

SMB Enterprise Scale Scaling 316

SaaStr

DECEMBER 25, 2024

So it’s ending up a good year for Enterprise SaaS, fueled in part by AI, but also fueled in part by bounced off some lows in terms of overall enterprise IT spend: ServiceNow is worth a cool $230 Billion at $11 Billion in ARR — the 20x club! Very, very enterprise. #3. The best of enterprise. 98% GRR. . #3.

Enterprise 269

Enterprise Scaling AI Revenue 269

SaaStr

JUNE 28, 2025

But here are some general guidelines: ARR (Annual Recurring Revenue) : Most SaaS companies raising a Series A are doing between $1M and $2.5M If you’re selling to mid-market or enterprise, negative churn (expansion revenue outpacing churn) is a strong signal. This shows you have a scalable and efficient sales model.

Benchmarks 251

Benchmarks Scale Generative AI Churn 251

SaaStr

NOVEMBER 27, 2024

98% NRR from Enterprise Customers, Down from 101% a Year Ago and 115% in 2023. 100k+ Customers Only Segment Growing, Are 31% of Revenue. Enterprise Overall Now 59% of Revenue Overall enterprise customer count is flat, but $100k+ customers are up 7%, Like many growing more slowly today, their focus is in the enterprise. #4.

SMB 269

SMB Churn Enterprise Acquisition 269

SaaStr

JANUARY 15, 2025

Top-tier growth, cash-flow positive, and very durable revenue. Wall Street wants revenue that is durable. 221,000 Total Paying Customers, But 65% of Revenue From 3,200 Large Customers This is what you should see when a “long tail” engine is just working at scale. Wall Street wants revenue that is durable.

Scaling 268

Scaling Cloud AI Engineering 268

SaaStr

JULY 30, 2024

Okta’s VP of Engineering, Monica Bajaj, and Senior Director of Platform Product Marketing, Priya Ramamurthi, share Okta’s playbook to PLG, developer experience, and Enterprise ARR. What does scaling Enterprise ARR mean? The Enterprise Funnel Finally, it’s time to scale as your experts become advocates and champions.

Underperforming Technical Team 276

Underperforming Technical Team Enterprise Scale Payments 276

SaaStr

JUNE 23, 2025

For seven years, growth was painfully slow: 2016-2021 : Minimal revenue, limited funding first years 2022 : $1M ARR (after 6 years!) Enterprise-Grade at Scale Major companies like Zillow and HubSpot use Replit for production systems. 2023 : $2.4M ARR Despite raising significant funding ($97.4M users, monetization remained elusive.

Software Review 208

Software Review AI Technical Review Venture Capital 208

SaaStr

OCTOBER 30, 2024

75% of Customers Are Onboarded By Partners Partners don’t just matter in the enterprise. It’s not always true that if you triple your product count, you triple your revenue. They recently did an Analyst day though that had some more great data that I thought was super interesting, and worth a deep dive. Sales Hub, i.e

SMB 306

SMB CTO Onboarding Scale 306

SaaStr

JUNE 29, 2025

This isn’t just a comeback story—it’s a masterclass in how enterprise software companies can reinvent themselves when new technological waves create fresh demand for their core capabilities. commercial revenue grew 71% YoY in Q1 2025 They crossed a $1 billion annual run rate in U.S. An unprecedented one in B2B.

AI 251

AI Artificial Intelligence Software Review Technical Review 251

Clouded Judgement

NOVEMBER 18, 2024

Today, we capture on average approximately 1% of our customers’ GTV as revenue from their subscription to and current usage of our products. ” How ServiceTitan Makes Money From the S-1: “We have two general categories of revenue: (i) platform revenue and (ii) professional services and other revenue.

Benchmarks 299

Benchmarks Payments Payment Services SaaS Payments 299

SaaStr

JUNE 14, 2025

Despite having spent almost no direct dollars on marketing, they reached 360,000 paying customers at an average ACV of $276—compared to enterprise darlings like Wiz who hit $100M with 260 customers at $384K each. million monthly active users, with the majority of revenue coming from selling AI models as a service to other companies.

ChatGPT 215

ChatGPT AI Search AI Growth Hacking 215

Tom Tunguz

NOVEMBER 12, 2023

I realized It has been a decade since I’ve updated revenue-per-employee metrics. Revenue per employee spans approximately $200k-$900k. Both these companies also focus on enterprise accounts - in contrast to Bill.com at the bottom, which targets small businesses. Compare that to the benchmarks in 2013!

Software Review 331

Software Review Trends Revenue Software 331

SaaStr

JUNE 29, 2025

Focus on Retention and Expansion The CS team’s primary job is to retain customers and drive expansion revenue. Metrics like Net Revenue Retention (NRR), churn rate, and Customer Satisfaction (CSAT) scores should be tracked from day one. This alignment can drive better retention and faster expansion revenue.

Sales Hiring 186

Sales Hiring Customer Success Scale Churn 186

SaaStr

JANUARY 8, 2025

The enterprise customers are growing the fastest. 40% of Revenue from Outside U.S. 150,000 Total Customers. 100k+ Customers Are The Fastest Growing. This isn’t unqiue to Asana, it’s true of many SaaS leaders at scale, from Zoom to Shopify. Just remember not to leave the smaller ones behind! #3.

AI 294

AI B2B Scaling Trends 294

SaaStr

JUNE 22, 2025

initial public offering on Friday, becoming the latest enterprise software company to test increasingly receptive public markets. The company’s journey reflects the broader transformation of enterprise software during the pandemic era. Although it’s possible Figma may beat them out. But Figma is a crazy outlier.

B2B 176

B2B Payments SaaS Payments Payment Services 176

SaaStr

FEBRUARY 5, 2025

Today it’s a very enterprise solution, solving much bigger problems. International Revenue is 28% About in the middle for B2B. #5. Leaning More into Free Even as it goes more enterprise, and see a decline in SMB / Commercial accounts, PagerDuty is still leaning in more on Free. As has PagerDuty. So is spending on product.

SMB 270

SMB B2B Enterprise Scale 270

SaaStr

APRIL 2, 2025

Today it’s at: $800m ARR Growing 22% 20% Free Cash Flow Margins Modest re-acceleration in revenue growth and new customer count — but not NRR Roots are SMB, but 60% of ARR comes from mid-market and enterprise today And a $4B market cap, so 5x ARR Freshworks is getting a bit of a second wind, which is great to see!

Scale 261

Scale AI SMB B2B 261

SaaStr

DECEMBER 20, 2024

Former Head of Revenue at BILL and HubSpot Americas leader Michelle Benfer recently joined us on a SaaStr Workshop Wednesday share her insights on one of the most critical roles in any SaaS organization: the frontline sales manager. “Some teams consistently sold more enterprise SKUs, others had high volume but low ACV.

Sales Hiring 257

Sales Hiring Scale Underperforming Technical Team Sales 257

SaaStr

MAY 22, 2024

But — it’s one that is very important to many of us that sell into the enterprise. Its research and reports in enterprise software are critical. And … 92% of its revenue is from subscriptions. Given how critical its research is in selling to the enterprise, I wanted to take a look at its business.

Revenue 285

Revenue Enterprise Cloud Pricing 285

SaaStr

JULY 3, 2024

Accel Partner Philipe Botteri and Synthesia’s co-founder and CEO Victor Riparbelli deep dive into the lessons learned about building an Enterprise-focused Generative AI company and scaling it. AI Adoption in the Enterprise How do you make it happen? Long-term revenue is more painful, but it’s essential to invest in it.

Enterprise 286

Enterprise AI Search AI Artificial Intelligence 286

SaaStr

OCTOBER 11, 2023

That’s not just pretty epic growth at almost $7 Billion in revenue, it’s one heck of a comeback. ▶️ Radically more efficient, $600m+ adj operating income run-rate ▶️ 29% of biz from enterprise (Plus) — Jason ✨Be Kind✨ Lemkin  (@jasonlk) October 10, 2023 5 Interesting Learnings: #1. A tough transition.

Payments 286

Payments Merchant Services Revenue Payment Solutions 286