SaaStr

FEBRUARY 14, 2023

Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. For SMB-facing companies, over 110% should be your goal. Key Takeaways The SaaS “crash” reminds us to drive our investing from corporate finance fundamentals. 5x is best. 8x is better.

Metrics 211

Metrics Marketing SaaS SMB 211

Tom Tunguz

APRIL 25, 2012

On first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. SMB SaaS companies sell to a radically different market than enterprise software companies. On the other hand, SMB SaaS companies sell to firms with 10 employees and $400k in annual payroll.

SMB 100

SMB Scale SaaS compliance 100

ChurnZero

AUGUST 24, 2018

This week we hosted a well-attended webinar on – Customer Success & Finance: Get Aligned! The webinar discussed the process and impact of the renewal from both the Customer Success and Finance point of view. The big thing that you probably want to focus on is that recurring revenue stream. You do not have a business there.

Finance 61

Finance Customer Success Scale Customer Lifetime Value 61

Intercom, Inc.

JANUARY 23, 2020

Just look at subscription analytics startup ChartMogul whose brand and product are now a household name in the SaaS community. Barely over five years old, the company has analyzed over 200 million subscriptions and over a billion customer transactions. But, still, it’s not impossible. Among the leading causes of death? Poor marketing.

Underperforming Technical Team 183

Underperforming Technical Team Scale Payments Payment Services 183

Neil Patel

DECEMBER 23, 2020

HubSpot CRM – Best free marketing CRM Really Simple Systems – Best free sales CRM Agile CRM – Best free customer service CRM Flowlu – Best for SMB finance Apptivo – Best for basic business management. Some of the better free products also include: Live chat Invoicing VoIP calling Limited sales automation.

Payment Solutions 139

Payment Solutions Software Review Software Payments 139

SaaStock

JANUARY 25, 2019

Its focus is on helping companies handle financial routine and streamlining processes related to accounting, banks, stock, and electronic invoicing, among others. from Vostok Emerging Finance, Valor Capital Group, and others. Omie main goal is to bridge the efficiency gap in Brazilian SMB, helping customers to be more prosperous.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

Sales Hacker

AUGUST 26, 2021

Don’t be hard on RevOps and finance folks for putting guardrails up. The industry ranges are around six to nine months for MM/Enterprise sales and three to five months for SMB sales businesses. Bookings vs. invoices. As a rep, a comp plan based on bookings is much more beneficial to you than one based on invoices.

Software Review 97

Software Review Compensation Payment Features Underperforming Technical Team 97

SaaStr

MARCH 13, 2020

315: Harry Hurst is the Co-Founder & Co-CEO @ Pipe, the startup that gives you control of your cash flow by giving you access to the full annual value of your monthly subscriptions, upfront. And I think the SMB mid-market sector is actually what’s fueling this tremendous growth we’re seeing year over year.

SaaS Payments 210

SaaS Payments Payment Methods Finance Payments 210

Point Nine Land

OCTOBER 8, 2021

At the same time, the industry is known for delays in projects and in payments, and small companies often struggle with cash management as they deal with multiple projects at the same time, relying mainly on excel and word to issue budgets and invoices, as well as manage their receivables across several projects.

Technical Cofounder 52

Technical Cofounder Construction Payment Solutions SaaS Payments 52

Intercom, Inc.

OCTOBER 29, 2019

For example, our Finance team is now able to confirm whether new customer growth is up in our target segments. You can’t find email lists using Job-to-be-Done, but you can find ones for B2C subscription businesses that have a high volume of website traffic. Assessing progress on our strategy. How to segment your customers.

Business 184

Business B2C Scale Headcount 184

Payrix

MARCH 12, 2024

How do you increase the lifetime value of that software and payments customer through value added services, think Embedded Finance, gift card solutions, digital, or you know, physical gift card solutions? You may be dealing with a software company that solely focuses on the SMB. How do you think about retention?

Payments 100

Payments Embedded Payments Merchant Services SaaS Payments 100

SaaStr

OCTOBER 29, 2019

This is a mobile solution for SMB’s to send an invoice and get paid. There’s a client of Simon Kutcher’s that caters to the SMB segment and they weren’t happy with their revenue growth. That team is focused on the SMB segment, customers 250 employees or less. So, what did they do?

Payments 100

Payments Pricing Compensation SaaS Payments 100

Tom Tunguz

JULY 14, 2013

For example, Zuora enables subscription billing; Expensify manages employee expenses; ZenDesk builds customer support systems. Characteristic 3: Finances Its Own Growth. After meeting quite a few SaaS companies, I’ve compiled a list of my ideal characteristics for a SaaS business below. Customers can’t function without it.

Sales Hiring 100

Sales Hiring Venture Capital SaaS Machine Learning 100

Kellblog

JUNE 17, 2023

I’ve never heard of SaaS quick ratio before, but from finance class I remember that the quick ratio is a liquidity metric, so I’m curious. Then again, I come from an enterprise background, but I do work with some SMB companies. months assuming the more standard formula and 80% subscription gross margins.

Scale 102

Scale Sales Benchmarks Metrics 102

SaaStr

MARCH 31, 2022

million subscriptions transacted and Google’s marketplace has seen 3X growth in SaaS sales. During this time of remote workforce, budgets are tightening and a lot of our enterprise customers are using their pre committed cloud security contracts to buy enterprise software and software from ISVs. So it’s super important.

Scale 200

Scale Marketplace as a Service Cloud SaaS Payments 200

OPEXEngine

SEPTEMBER 10, 2020

Many are experimenting with changing subscription lengths to accommodate new customers and conversely, extending contracts beyond 12 months to lock in enterprise customers. At the same time, some enterprise SaaS companies are working to lengthen subscription terms beyond 12 months where they can lock customers in now.

Payment Services 59

Payment Services SaaS Payments Trends Payment Solutions 59

Chart Mogul

SEPTEMBER 15, 2023

How To Trick Investors & VCs by Only CFO The purpose of this post is not to educate you on how to commit/detect fraud, but to help you understand some of the accounting/finance nuances that might deceive investors. Software subscriptions are the life of every SaaS business and must be accounted for properly in your general ledger.

Scale 52

Scale Underperforming Technical Team Sales Hiring SaaS 52

Point Nine Land

NOVEMBER 10, 2020

The simple LTV formula The simplest formula to calculate LTV in a subscription business is ( Customer Lifetime x Gross Profit) , where customer lifetime is ( 1 / Customer Churn Rate) and gross profit is ( Average Revenue per Account (ARPA) x Gross Margin). This is not an unusual pattern in SMB SaaS. That makes no sense.

Outsourced Development 97

Outsourced Development Customer Lifetime Value Churn Forecasting 97

Kellblog

FEBRUARY 2, 2023

High-quality companies will still be financed, if on less stratospheric terms. Structure generally means financing terms, such as multiple liquidation preferences or participation (definitions here ), that favor new investors over existing investors and the common stockholders in a liquidation. The structure pendulum: it’s back.

Software Review 119

Software Review Development Team Review Underperforming Technical Team Scale 119

SaaStr

AUGUST 9, 2019

To date they have raised over $113m in financing from some of the best in the business including Tiger Global, Battery Ventures, Boldstart, Canaan, Cisco, and Redpoint, just to name a few. It’s not an SMB where you’re getting volumes of 100 a day. You said there about mid-market and it not having the same velocity of SMBs.

SaaS Payments 130

SaaS Payments Cloud Technical Review Scale 130

ChurnZero

MARCH 18, 2022

My first answer is – just as a business finance-oriented person and former CEO – I like the notion of each CSM having their own MRR. It’s subscription growth margin, which plays into CAC payback period. CAC payback period is how many months of subscription gross profit does it take to pay back your customer acquisition costs?

Customer Success 98

Customer Success Metrics SaaS Banking 98

ChurnZero

JANUARY 4, 2019

“In 2019 there will be an increase in subscription fatigue. When even your electric toothbrush is pushing you towards a subscription model, we can expect to see an increase in subscription fatigue. If we’re not at peak SaaS, we’re probably close to it.

Customer Success 73

Customer Success SaaS Payments Payment Services Payment Solutions 73

Baremetrics

NOVEMBER 9, 2021

Low churn allows recurring revenue to grow, improves growth rate, and reduces the risk of long-term value loss. SMB SaaS companies tend to have higher churn rates due to their lower demand and less sophisticated needs. Payment processing can cause huge headaches for buyers if the account can’t be transferred.

SaaS Payments 105

SaaS Payments Technical Review Development Team Review Software Review 105

SaaStr

JULY 1, 2020

I’m looking at it and I’m like, “Who’s got the Wall Street Journal subscription? Then, we’ll end of the day with me and Stewart Butterfield and obviously Slack is doing well, but Slack also has a massive SMB base and its challenges. Let’s cancel it. It’s $9 a month. There’s elements.

Merchant Services 175

Merchant Services Scale Sales Recruiting Sales 175

SaaStr

JUNE 7, 2019

Be it enterprise or SMB. How does thinking on pricing–both size and mechanism–really change when considering enterprise versus SMB in your mind, Amit? If you’re an SMB business, you will have high churn, relatively speaking, no matter how good you are, because it just is the nature of the business.

Outsourced Development 130

Outsourced Development Outsourcing Services Sales Hiring Scale 130

Intercom, Inc.

JULY 29, 2021

SaaS is the subscription business. I think the difference for me doing that global sales operations role at BrowserStack, being in the room every day with our C-levels, with the head of finance, with the head of recruitment, on a personal level, was fascinating, exciting, and scary all in equal measure. Mark: It’s funny.

Sales Hiring 223

Sales Hiring Scale Sales Recruiting Underperforming Technical Team 223

ChurnZero

JANUARY 4, 2019

“In 2019 there will be an increase in subscription fatigue. When even your electric toothbrush is pushing you towards a subscription model, we can expect to see an increase in subscription fatigue. If we’re not at peak SaaS, we’re probably close to it.

Customer Success 49

Customer Success SaaS Payments Payment Services Payment Solutions 49

SaaStr

JUNE 10, 2020

And so we’re a great experience for your employees but also for your finance teams who are trying to control costs and save money. What does finance care about? Right now in finance, they just canceled a bunch of flights and they need to understand what’s the impact. So here we are, the unfortunate truth.

Travel 173

Travel Marketing Scale Outsourcing Services 173

Sales Hacker

NOVEMBER 15, 2017

Annual Recurring Revenue (ARR) is the value of contracted, often subscription-based revenues normalized for one calendar year. It is called Annual Contract Value (ACV) when annualized and Average Purchase Value (APV) when the revenue derived is not subscription-based. Gatekeeper. General Manager. Global Business Unit.

Scale 99

Scale Payment Methods Sales Recruiting SaaS Payments 99

SaaStr

SEPTEMBER 13, 2019

In Today’s Episode We Discuss: * How Allison made her way into the world of SaaS with Gainsight from her start in finance at Bain in New York? What that means is you’re selling 50 cent services for every dollar of subscription revenue that you bring in. Listen to the start of the episode for a promo code to our upcoming events!

Engineering 26

Engineering Scale Underperforming Technical Team Customer Success 26

Sales Hacker

OCTOBER 7, 2021

Cassie spent the first pre-SaaS chapter of her tech career in growth roles in subscription and marketplace businesses (TheLadders.com, GLG). Develop relationships in product development, legal, finance, marketing… across your company (in addition to your customers’ companies in the appropriate groups). Arley Nevar.

Scale 130

Scale Sales Recruiting Sales Hiring VP of Engineering 130