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As You Scale, About Half Your Team Will Be in Sales and Marketing

SaaStr

Sales-driven SaaS startups end up with about half their headcount in sales and marketing. One thing that sneaks up on you in SaaS is just how many sales, marketing and revenue professionals you are going to need: First it sneaks up on you in the early days because the initial tiny team become so efficient. Sales doesn't.

Scale 348
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. Many investors laugh (and some rightly so) at the fact that software companies’ valuations are often described as a multiple of revenue.

AI 180
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How Quickly Does Headcount Scale in the Fastest Growing Software Businesses?

Tom Tunguz

Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. I’ve normalized the years for when all the businesses were roughly at the same headcount - fewer than 50 people. The fastest grower scales to more than 600 people in 30 months.

Headcount 153
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Salesforce, Samsara, Monday and More: “Layoffs are Over. We’re Back to Hiring. Thousands.”

SaaStr

That works for a while, but you end up with not enough headcount if you do freeze hiring but still want to grow. But it’s still going to hire more slowly than revenue growth, and that’s the key. More on this in our deep dive with co-CEO Eran Zinman: You can’t grow forever with no growth in headcount.

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Customer Success benchmarks: headcount and budgets

ChurnZero

Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size. When asked about non-headcount budgets; 8.3%

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What is the Structure of the Typical SaaS Company as it Scales?

Tom Tunguz

Today, we’re answering the question: how do teams grow as a startup scales? We can derive the table above if we look over the entire respondent base and bucket headcount by ARR. And at that scale or higher, CROs lead the go-to-market for more than 50% of respondents. But in sales, a CRO is often hired at the $20-50M ARR range.

Scale 340
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Customer Success benchmarks: headcount and budgets

ChurnZero

Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size. When asked about non-headcount budgets; 8.3%