Clouded Judgement

JANUARY 12, 2024

The big cash piles raised in 2021 are starting to get smaller, and we dug in on how investors and founders should be thinking about the world. Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! You can find the recording here. This all shifted in 2021.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

Clouded Judgement

APRIL 5, 2024

A favorite clip of mine is when Russ Hanneman is talking about how pre-revenue businesses are the best kind of businesses. Here’s part of his quote: “If you show revenue people will ask how much and it will never be enough…If you have no revenue you can say you’re pre revenue. Follow along to stay up to date!

Cloud 161

Cloud Scale Pricing Revenue 161

The Angel VC

NOVEMBER 30, 2017

What’s maybe even more interesting than taking a look at the numbers themselves is to see how different companies define churn (or the inverse, retention). Since there is no official US-GAAP definition of churn or retention, different companies use different ways to measure and report these metrics.

Churn 226

Churn SaaS Retention Metrics 226

Kellblog

OCTOBER 5, 2022

He made a few comments and concluded with, “and net revenue retention (NRR) is thus 112%, not bad.”. You can’t calculate NRR from an ARR bridge [2].” Just take starting ARR, add net expansion, and divide by starting ARR. Under the right circumstances, I think you can calculate NRR using an ARR bridge [3].

Systems Review 123

Systems Review Churn Metrics Finance 123

SaaStr

AUGUST 7, 2023

As you’ll learn further down in this article, ARR now means any type of software-related revenue with 100%+ Net Revenue Retention (NRR), even if it’s not truly recurring. How Is CAC Calculated In SaaS? CAC stands for Customer Acquisition Costs and measures how much it costs to buy a new customer.

Metrics 184

Metrics SaaS Sales Hiring Finance 184

Chart Mogul

JUNE 1, 2023

Companies with best-in-class retention grew at least 1.8x In an uncertain market, customer retention is key. So if you are keeping a close eye on your retention metrics this year, you’re not alone. Retention is one of the most important metrics when building a successful SaaS business. What is customer retention?

Retention 90

Retention Metrics Benchmarks SaaS 90

Baremetrics

FEBRUARY 8, 2021

Net Dollar Retention (NDR) is an essential metric for growing SaaS businesses. This article will cover everything you need to know about NDR: what it is, how it's calculated, and how it supports sustainable growth. What is Net Dollar Retention (NDR)? What is Net Dollar Retention (NDR)?

Retention 88

Retention SaaS Payments Payments Payment Services 88

Kellblog

SEPTEMBER 2, 2020

I just finished delivering my presentation at SaaStr Annual 2020, dubbed Churn Is Dead, Long Live Net Dollar Retention. While the session is title is perhaps dramatized, if churn isn’t dead I think it’s at least wounded because there are too many ways to calculate it — and the downstream metrics based on it.

Churn 139

Churn Retention Metrics SaaS 139

Tom Tunguz

FEBRUARY 2, 2020

Net Dollar Retention is one of the most important metrics is a SaaS business. But how do you measure NDR? You could calculate NDR as the average of the Percent Change column, which would give you an NDR of 0.5%. Twilio calculates it as the annual change in cohort quarterly recurring revenue.

Retention 199

Retention Benchmarks Revenue Churn 199

Kellblog

OCTOBER 13, 2022

If ARR is a forward-looking metric [6], what do ARR-based metrics like net dollar retention (NDR) mean [7] in a world without fixed forward commitments? A guy walks into a bar and orders a $17 Martini. Is it MRR (monthly recurring revenue)? The potentially surprising answer: maybe, and often yes. It’s contractual MRR.

Metrics 133

Metrics SaaS Payments SaaS Payment Features 133

User Pilot

DECEMBER 9, 2021

What is Net Revenue Retention? And should you care about improving this retention metric? In this article, we’ll take an in-depth look at what Net Revenue Retention is, why it matters and the multiple approaches you can take to improve it. What is Net Revenue Retention (NRR)?

Retention 98

Retention Revenue Software Review SaaS 98

SaaStr

JUNE 10, 2020

How much do you talk about Customer Marketing? And like retention, a marketing journey should also begin again once a customer closes. Customer Marketing is similar to Demand Gen, but with very different end goals — retention and net account growth. How good is your onboarding content? Or even longer.

Marketing 246

Marketing Retention Customer Success Content Marketing 246

The SaaS CFO

OCTOBER 25, 2022

Gross dollar retention measures the amount of revenue that you keep from your existing customer base. Gross dollar retention (GDR) along with net dollar retention (NDR) have become popular metrics in the valuation world.

Retention 59

Retention Revenue Metrics SaaS 59

Chart Mogul

MARCH 23, 2023

How good is your business at retaining customers? And, is your poor retention the reason for your slower growth in 2023? If you’re unsure, check your retention metrics. And, is your poor retention the reason for your slower growth in 2023? If you’re unsure, check your retention metrics.

Retention 52

Retention Metrics Revenue Scale 52

User Pilot

OCTOBER 24, 2023

TL;DR Usage-based pricing is a consumption-based pricing model that charges customers based on how much they use a product (instead of at a flat monthly rate). Userpilot helps you drive product-led growth, increase net dollar retention, and deploy your usage-based pricing model by adding contextual upsells that are triggered by in-app events.

Pricing 103

Pricing Payment Solutions SaaS Payments Payments 103

The SaaS CFO

DECEMBER 20, 2022

Typically, you measure Gross Dollar Retention and Net Dollar Retention to assess the stickiness of your revenue. However, there is another metric that compliments retention. The post How to Calculate Your Renewal Rate appeared first on The SaaS CFO. It’s called the renewal rate.

Retention 52

Retention Metrics Revenue SaaS 52

ChurnZero

MARCH 31, 2022

Following the webinar, we invited Dave to give his rapid-fire takes on tracking the retention of auto-renew customers, calculating customer lifetime value as a startup, comping CSMs on expansion, determining the importance of measuring time to value, and much more. You can read part one of our Q&A recap here. See your local CFO.

Customer Success 98

Customer Success Metrics Technical Review Scale 98

Chart Mogul

DECEMBER 13, 2022

Retention is one of the most crucial metrics in SaaS. It tells you exactly how well your business is doing, whether you are crushing it or you’ve got a problem on your hands. Without a high retention rate, it’s very hard to build a profitable SaaS business at scale. Calculating Net/Gross MRR Retention Rates.

Retention 52

Retention Metrics SaaS Churn 52

CustomerSuccessBox

FEBRUARY 17, 2022

Most people judge the performance of a SaaS company by its Monthly Recurring Revenue (MRR) while evaluating a company by its Net Dollar Retention (NDR) can provide much more valuable insight. I would say that Net Dollar Retention (NDR) is one of the most important metrics for SaaS companies. Increases MRR.

Benchmarks 52

Benchmarks Retention Churn Subscription 52

OPEXEngine

MAY 18, 2021

trillion dollars. In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. Given the level of M&A in 2020 and 2021, it is worth reviewing these metrics and understanding how they are viewed. . Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

ChurnZero

OCTOBER 5, 2022

This is a guest blog contributed by Emily Ryan, chief client officer at Valuize , a B2B consulting company that helps industry-leading technology organizations supercharge their customer lifecycle to drive best-in-class net dollar retention. Here are four steps to get you started. Growth of the account and potential to grow.

Underperforming Technical Team 94

Underperforming Technical Team Payment Services Payment Methods Scale 94

Kellblog

OCTOBER 30, 2022

In addition, for most of the metrics they exclude companies <$5M in ARR from the calculations, which brings up the overall median for that set to $17.6M. Net: this is not VC-backed SaaS companies (62% are), this is not IPO-track SaaS companies (presumably some small subset of that 62%). Net dollar retention (NDR) of 109%.

Metrics 136

Metrics SaaS Benchmarks Churn 136

Sixteen Ventures

AUGUST 14, 2022

The people in charge of your company – the Executives, Board, and Investors – want to improve a metric called NRR (Net Revenue Retention or NDR, Net Dollar Retention, if you prefer) for one very simple reason: it plays a direct role in the value of the company. Let me explain. What is NRR?

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

Chart Mogul

DECEMBER 16, 2022

If you’re looking to secure VC funding, you should understand your growth trajectory, net dollar retention, … In this episode of SaaS Open Mic, I’m speaking with Jess Bartos , an investor with Salesforce Ventures. Net dollar retention. Net Dollar Retention means you’re delivering on your promise.

Metrics 52

Metrics Scale SaaS Retention 52

Tom Tunguz

MAY 6, 2019

Those multiples are calculated by dividing the projected future revenue of the company by its enterprise value today. Better efficiency, good stock market conditions, belief in the management team, net dollar retention, etc. How much is this business worth? But what do they mean? What do they imply?

Business 226

Business Startup Pricing Revenue 226

Kellblog

MAY 19, 2021

In the episode, Ray and I discuss: Top SaaS metrics — e.g., annual recurring revenue (ARR), ARR growth, net dollar retention ( NDR ), net promoter score (NPS), employee NPS, and customer acquisition cost ( CAC ) ratio. How metrics vary with scale. “Measure or measure not. There is no try.”

Metrics 88

Metrics Scale Benchmarks Acquisition 88

Baremetrics

MARCH 30, 2021

The result of your customer retention efforts depends on how well you can analyze your efforts. A free trial from Baremetrics can help you discover the specific metrics you should be tracking for customer retention tactics. Let's take a look at how you can get the most out of your customer retention analysis.

Retention 98

Retention Churn Metrics Strategy 98

Intercom, Inc.

NOVEMBER 14, 2018

If you’re forecasting short on your global revenue target, do you know how you’ll make up the difference? Here’s a look at the sales KPIs we track at Intercom and how we use them to drive key outcomes. There are many parts to a high-performing sales organization – the right people, processes and strategy, to start. What are sales KPIs?

Sales Hiring 188

Sales Hiring Metrics Revenue Sales 188

The SaaS CFO

JUNE 13, 2021

But how do we measure the health of our recurring revenue? We use gross dollar retention (GDR) and net dollar retention (NDR). The post How to Calculate SaaS Revenue Retention appeared first on The SaaS CFO. Investors love stable, recurring revenue streams.

Retention 52

Retention Revenue SaaS Investment 52

OpenView Labs

FEBRUARY 4, 2019

Investors look closely at retention rates as a signal of customer health, product stickiness, competitive differentiation and pricing power. Retention rates – particularly net dollar retention – also strongly predict a SaaS company’s growth rate. Somehow, NPS has become synonymous with retention.

Benchmarks 105

Benchmarks Retention Churn Metrics 105

ChurnZero

SEPTEMBER 8, 2020

Calculating churn can be tricky. Focus on net dollar retention rate (NDRR). . Long live Net Dollar Retention “ you’ll find out “Churn is only wounded” [link] #SaaStrAnnual CAC: Customer Acquisition Cost LTV: Customer Lifetime Value ARR: Annual Recurring Revenue pic.twitter.com/6INkuoPtCB.

Customer Success 90

Customer Success Customer Lifetime Value Churn Retention 90

Valuize Consulting

OCTOBER 7, 2021

For many Chief Customer Officers and Customer Success (CS) leaders, this marks the beginning of a very stressful time as you prepare to have the challenging conversation with your CFO about how to properly invest in your Customer Success teams. How are you scaling your team ? How are you measuring your team’s performance?

Customer Success 52

Customer Success New CTO Scale Headcount 52

CustomerSuccessBox

MAY 25, 2021

That’s because Customer Retention is critical. Customer retention is critical — particularly for B2B SaaS companies. Click here to know why customer retention is important. Considering how important it is for companies to hold on to their customers, having visibility into the churn is very important.

Retention 52

Retention Metrics Outsourced Development SMB 52

Valuize Consulting

AUGUST 19, 2021

Net Dollar Retention Is The Gold Standard Of Customer Success Measurement. Few metrics yield as much insight and impact on a company’s valuation as Net Dollar Retention (NDR). Understanding Net Dollar Retention. Key Drivers of Net Dollar Retention.

Retention 52

Retention Metrics Churn Customer Success 52

Valuize Consulting

AUGUST 19, 2021

Net Dollar Retention Is The Gold Standard Of Customer Success Measurement. Few metrics yield as much insight and impact on a company’s valuation as Net Dollar Retention (NDR). Understanding Net Dollar Retention. Key Drivers of Net Dollar Retention.

Retention 52

Retention Metrics Churn Customer Success 52

OPEXEngine

JANUARY 26, 2021

Net Dollar Retention is one of the most important metrics is a SaaS business. But how do you measure NDR? You could calculate NDR as the average of the Percent Change column. You could calculate it as the percent growth in total ending revenue compared to the total starting revenue.

Retention 52

Retention Benchmarks Revenue Churn 52

The Angel VC

MAY 12, 2018

Although it is important to our business that our users renew their subscriptions after their existing subscriptions expire and that we expand our commercial relationships with our users, given the volume of our users, we do not track the retention rates of our individual users. This paragraph is a great description of that concept.

AWS 187

AWS Scale Subscription Payment Features 187