Entrepreneur - SaaS

SEPTEMBER 6, 2022

It takes collaboration, wise business choices, and effective resource management to scale a SaaS company.

Business 75

Business SaaS Scaling Management 75

FastSpring

NOVEMBER 22, 2017

The growth of online retail is three times higher than that of the wider industry, bringing in an estimated $436 billion in the US alone , acording to Business Insider. With ecommerce stores outperforming their brick-and-mortar counterparts, you might think it would be easy to grow your new online business.

Marketing 60

Marketing Business 60

Nimble - Sales

MAY 21, 2019

Although e-commerce has made it quite easy for just about anyone with an idea and internet access to create a veritable business, it doesn’t mean that every online company will succeed. In fact, some have estimated that a shocking 97% of e-commerce businesses end up failing.

Business 76

Business 76

SaaSOptics

OCTOBER 2, 2018

Examining 7 key revenue growth performance and customer success metrics that are essential for scaling your SaaS business. For any growing business, capturing and analyzing financial data is critical for scaling and making informed decisions. You can proactively address issues quickly and drive growth confidently.

Business 47

Business SaaS Metrics Scaling 47

Tom Tunguz

APRIL 1, 2024

At $784m in ARR, growing 47% with 130% net revenue retention across 6100 customers, the company should be one of top 10 fastest growing software companies alongside Klaviyo, ZScaler, & Crowdstrike - in ARR terms. But overall revenue is growing 4.5% How can ARR grow so quickly while overall revenue is much slower?

Data 209

Data Subscription Payment Features Cloud 209

SaaStr

APRIL 19, 2024

EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. So, what does it take to get to a $100M outcome?

Engineering 237

Engineering Business Model Pricing Scaling 237

Tom Tunguz

JANUARY 28, 2024

The fastest growing software category in the public markets is security. These two software categories lead buyers’ priorities & are expected to grow at twice the pace of the overall software market. As a result, these businesses project higher growth rates & fetch more attractive valuations in early 2024.

Software Review 288

Software Review Software Finance Acquisition 288

Clouded Judgement

APRIL 19, 2024

Rubrik’s subscription ARR was $784m at the end of 2023 and growing 47% YoY. I lay out all of these numbers to hopefully portray that the business is growing much faster than the 5% 2023 revenue growth would suggest. The right way to view Rubrik is really more of a high growth software business growing >40%.

Cloud 141

Cloud Scale Subscription Payment Features 141

SaaStr

MARCH 6, 2024

On the one hand, it’s a leader in security — a hot space that is still growing less a weed. It’s growing 19% a year at $2.5 100k Customers Growing Faster, at +12% a Year, and $1m+ Customers Up 30% Okta’s bigger customers, at $100k+, aren’t growing radically faster than the rest.

Fractional VPE 208

Fractional VPE Part-Time VPE Scale SMB 208

SaaStr

FEBRUARY 12, 2024

And business software spend is set to cross $1 Trillion this year for the first time ever! Most of you are, in fact: According to our latest unscientific but directionally correct survey of over 2,000 SaaS execs, 64% of you are growing your sales team in 2024. And 22% of you are growing the team 50% or more. So cuts continue.

Sales Hiring 255

Sales Hiring Scale Sales Interviewing 255

SaaStr

APRIL 17, 2024

When you’re growing fast, everything can feel like it’s breaking constantly, and you’re hiring and rehiring people fast. You’re positioning the company to grow for the long term and could potentially have a great IPO someday. Lesson 1: Offers Come When They Come You should grow your company for the long run. He always said no.

Underperforming Technical Team 164

Underperforming Technical Team Data Development Team Review Technical Review 164

SaaStr

NOVEMBER 1, 2023

Billion in ARR, it’s still growing 48% year-over-year. Transaction Fees Growing Far Faster (38%) Than Software / SaaS License (21%). Today, software is “just” at a $270m ARR run rate, and just growing 21%. But payments and transaction are far bigger at $800m run rate — and growing faster at 38%. #2.

Payment Services 279

Payment Services Payments SaaS Payments Payment Solutions 279

Tom Tunguz

DECEMBER 5, 2023

Second, each of these businesses has scaled, doubling or more in the last three years. Third, many of these businesses like Mongo & DataDog are raising guidance suggesting their teams’ confidence in the software market in 2024. ” Customers continue to grow accounts. Why is a flat growth rate something to cheer?

Cloud 290

Cloud Software Scaling Revenue 290

SaaStr

OCTOBER 24, 2023

And yet, overall Cloud spend continues to grow to record levels. In fact, Gartner predicts 2024 spending will grow far faster than 2023, which still grew substantially. Their Cloud business is on fire. SAP expects to close the year out with their Cloud and SaaS businesses at a $15 Billion run-rate. And rebuild.

Cloud 223

Cloud Scale Sales Hiring Business 223

Payrix

APRIL 17, 2024

Adding Embedded Payments gives you an exciting opportunity to grow your business and solve real pain points for your customers. Your business objectives Before you begin your marketing campaign, it’s important to identify your business and marketing objectives.

Payments 130

Payments Embedded Payments Merchant Services SaaS Payments 130

Clouded Judgement

APRIL 26, 2024

As you can see, there was a nice rebound in Azure ex AI growth as well as the overall growth: And if I take a similar swag at the run rate of Azure AI Services, those quarterly figures are below: On one hand, seeing this business get to a $4b run rate in a year is incredible! Follow along to stay up to date!

Azure 152

Azure Cloud Software AI 152

Tom Tunguz

FEBRUARY 8, 2024

Theory created a public market AI index to track software companies who have significant product plans or current AI businesses. Theory created a public market AI index to track software companies who have significant product plans or current AI businesses. We’re entering a new pricing environment for software: AI vs non-AI.

Startup 300

Startup AI Software Pricing 300

Clouded Judgement

MARCH 29, 2024

In the buckets below I consider high growth >27% projected NTM growth (I had to update this, as there’s only 1 company projected to grow >30% after this quarter’s earnings), mid growth 15%-27% and low growth <15% High Growth Median: 10.7x Follow along to stay up to date! Mid Growth Median: 9.2x Low Growth Median: 4.5x

Cloud 278

Cloud Forecasting Subscription Payment Features 278

SaaStr

OCTOBER 5, 2023

But HubSpot is a platform today, from Marketing to Sales to Service to CMS — a true Customer Platform: Its first product is the most mature — its Marketing Hub is growing 20%, vs CRM at 30% and Service at 40%. of the $2B total ARR for HubSpot. It’s now adding more new bookings than HubSpot Marketing Hub.

Marketing 208

Marketing SMB Scale Revenue 208

SaaStr

JANUARY 17, 2024

They’re at $1 Billion in ARR now, growing an impressive 23%. That’s behind Monday, but growing faster than Asana or Atlassian. The Biggest Customer Segments Are Growing the Fastest. As you can see, $100k+ customers are growing the fastest, followed by $50k, then followed by $5k+ customers. But Smartsheet?

Technical Review 220

Technical Review Airlines Entertainment Government 220

Tom Tunguz

FEBRUARY 26, 2024

Quoting directly : We expect our growing data advantage and intellectual property to continue to be a key element in the training of future LLMs. Data sales invert the business model of the Internet. The days of the ad network may be numbered & with it, an era of a new business model for the Internet. LLMs need data.

Artificial Intelligence 267

Artificial Intelligence Business Model Business Technical Review 267

SaaStr

MARCH 20, 2024

So of the beloved leaders in Cloud and SaaS, few have been hit harder than Hashicorp by the “downturn” At $400m ARR, they were growing 50%. Customer Count Still Growing Impressively, Up +19% At scale, it can be hard to increase new customer count at ~20%. Now at $600m, ARR, growth has radically slowed to 17%.

Scale 225

Scale Cloud Scaling Revenue 225

SaaStr

JANUARY 8, 2024

I can’t tell you how many emails a week a month that go something like this: “It’s been a challenging year with 30%-50% growth, but with some funding, we can grow much faster next year!” It’s a business of outliers and unicorns. I get it, I hear you. and trust me, I’ve been there. You have to ask.

Startup 311

Startup Investment Business 311

SaaStr

SEPTEMBER 19, 2023

Many of the fundamental business models that were once engraved in the SaaS playbook are now changing thanks to a tougher macro environment and a maturing market. PST, Stephanie Opdam, Partner at Notion Capital, shares four business model changes that will allow SaaS companies to build resilience and staying power over time.

Business Model 238

Business Model SaaS Payments Payments Headcount 238

SaaStr

NOVEMBER 30, 2023

The four stages of growth are: Early stage Early growth Growth Pre-IPO Each of those stages has key GTM milestones, benchmarks, and team-building strategies that allow you to grow effectively. Without it, you don’t have a business. Companies that win a market are just as good at Go-to-Market as they are at building great products.

Scale 224

Scale Sales Hiring Scaling Outsourced Development 224

SaaStr

SEPTEMBER 16, 2022

And one of my themes was that while the markets are down, I mean way down — the best in SaaS are still growing at jaw-dropping rates. From HubSpot to Snowflake to Asana to Monday to Gitlab to Cloudflare, the best in SaaS and Cloud aren’t just growing faster than ever. It really means a lot. Multiples are down.

SMB 349

SMB SaaS Cloud Scaling 349

Tom Tunguz

DECEMBER 26, 2022

But Constellation arrives at that growth in a very different way : they acquire to grow. Constellation acquires tens of businesses each year. These acquisitions tend to be small (around $5m) & the company operates most businesses with a team of 30-40 people across 5 operating segments by theme. Growth Source. Acquisition.

Software Review 283

Software Review Investment Software Acquisition 283

SaaStr

DECEMBER 21, 2022

They aren’t seeing any decline in their business at the end of 2022. At almost $18B in ARR, it’s still growing an impressive 15% year-over-year on an FX-adjusted basis. And my old division of Adobe, Document Cloud, is growing 21% at $2.4 PDF and Acrobat were long seen as a dying business, being killed by the web.

Scale 255

Scale Cloud Subscription Payment Features 255

SaaStr

MARCH 20, 2024

Higher than he imagined in terms of the founder quality bar and, the stage of the business, and growth and efficiency metrics. For instance, Founders Fund doesn’t really invest in AI, health tech, or edtech, even if you’re growing 5x. People need to be scrappy, creative, and accountable to numbers that make sense for the business.

Sales Hiring 246

Sales Hiring Sales Recruiting Scale Headcount 246

SaaStr

JULY 18, 2022

Gartner: businesses will spend $100,000,000,000 more on software in 2023 than 2022. Cloud spending is still expected to grow even faster in 2022 than 2021 , from 18.4% Cloud spending is still expected to grow even faster in 2022 than 2021 , from 18.4% The post Gartner: Software Spend Will Still Grow by $100 Billion in 2023.

Venture Capital 323

Venture Capital Software Cloud Forecasting 323

SaaStr

NOVEMBER 11, 2023

TIRED: “We’re raising a small $3m round before we do a Big $20m Series A later this year” WIRED: “We’re raising $3m to build a $100m+ business. Have to Commit to Growing at a High Rate. VCs will expect you to grow at a pretty high clip. Dear SaaStr: What Are the Best Arguments Against Raising Venture Capital? Loss of Control.

Venture Capital 215

Venture Capital Pricing Business 215