SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 196

Pricing Scale Retention AI 196

Clouded Judgement

APRIL 19, 2024

Subscribe now Rubrik IPO Update This week Rubrik launched their IPO with an initial pricing range of $28 - $31 / share. The table below lays out a few stats at different share prices. I’ll update this table if / when they update the pricing range. Altimeter is an investment adviser registered with the U.S.

Cloud 141

Cloud Scale Subscription Payment Features 141

Clouded Judgement

MARCH 22, 2024

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. However, it’s also one of the most loosely used metrics, and is frequently misused. Namely, retention!! For “fake” ARR, retention can vary wildly.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

MARCH 27, 2024

To me, this is just the impressive metric of all. ACV Basically Flat at $11,365 This is likely a “macro” impact as well in part — as well as the fact that HubSpot continues to invest in its smaller starter customers. Despite raising prices and selling more products, HubSpot ACV is basically flat at $11,365.

Scale 231

Scale Cloud Pricing Scaling 231

Clouded Judgement

MARCH 1, 2024

” I heard that a lot in 2021, and unfortunately not many call options hit… It’s hard to invest at 100x ARR and exit at 10x and make a return VCs aim for. Update on Q4 Earnings One metric I love tracking in net new ARR added in a quarter. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 311

Cloud AI Investment Metrics 311

Blulogix

FEBRUARY 19, 2024

This blog post delves into advanced strategies that can help subscription services foster deeper connections with their customers, thereby improving retention rates and fostering brand loyalty. Retention, on the other hand, focuses on maintaining these subscribers over time, turning them into loyal advocates for your brand.

Retention 52

Retention Engagement Strategy AI Search 52

Clouded Judgement

MARCH 15, 2024

Quarterly YoY growth is still decelerating, but the rate of change is starting to slow down Similarly, the median net retention is still falling FCF margins continue to expand, with the median FCF margin in Q4 hitting nearly 20% And finally, the CAC payback period. Altimeter is an investment adviser registered with the U.S.

Cloud 161

Cloud Software Review Subscription Payment Features 161

ChurnZero

JUNE 15, 2021

In a world seemingly obsessed with hyper-growth, this may sound like heresy, but when evaluating a B2B software-as-a-service (SaaS) company, the most important metric we look at is retention. The Different Types of Retention Metrics. For the purposes of this discussion, I am going to focus on net revenue retention.

Retention 59

Retention Metrics Churn Customer Success 59

ChurnZero

JUNE 9, 2023

8 metrics to position Customer Success as a profit center with finance While sentiment-based metrics like Net Promoter Score ® (NPS) and customer satisfaction are important, they don’t frame CS work from a financial perspective. To that end, here are the metrics you can use to get started. This is why renewals are so important.

Finance 98

Finance Metrics Customer Success Headcount 98

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., net retention and CAC payback). Subscribe now Is Software Rebounding?

Cloud 177

Cloud Software Benchmarks Retention 177

Clouded Judgement

FEBRUARY 9, 2024

Going in to this earnings season I expected a big driver of stock price performance to be how 2024 full year estimates change pre / post earnings. Since the macro feels more “stabilized” it felt fair to assume “are numbers going up or down” to be the question most correlated with stock price performance.

Cloud 195

Cloud Pricing Startup Revenue 195

SaaStr

SEPTEMBER 29, 2022

Free user retention. As consumer tech growth teams move through this adoption funnel, they evolve their north star metric. This evolution can be described in four stages—each stage with a goal measured by a specific metric. Stage 2: Prove free user retention. Cost per quality user is the north star metric here.

Technical Review 232

Technical Review Technical Advisors Scale Compensation 232

Tom Tunguz

AUGUST 26, 2019

To put the company’s stellar trajectory in context, I’ve plotted its metrics relative to two other incredible monitoring companies: NewRelic (NEWR) and AppDynamics (APPD). Here’s why: For every dollar of sales and marketing investment, DataDog generates $1.68 DataDog is playing across price points.

Metrics 189

Metrics Benchmarks Scale User Experience 189

Tom Tunguz

MARCH 18, 2019

the company generated $107M of trailing 12 month revenue, services 33% of the Fortune 500, grew revenue at 48% and has a net retention rate of 139% across 10,800 customers. Let’s first look at one of the key SaaS metrics: the dollar attention. The average customer is worth about $10,000.

Metrics 222

Metrics Benchmarks Software Review Engineering 222

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. Thus the premium placed on NRR as a valuation metric.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

Clouded Judgement

JANUARY 19, 2024

.” If we look historically at the period from 2015-2020 (ignoring 2021 IPOs) the rough medians were ~$200m ARR (minimum was $100m ARR), 50% YoY growth, and >120% net retention. The answer is they may, but just at a different price / valuation. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 177

Cloud Scale Compensation Metrics 177

User Pilot

JULY 18, 2022

Are you satisfied with the customer loyalty and retention rates of your SaaS? If you aren’t and want to boost these metrics, this article is for you! Today we explore what customer loyalty and retention mean for SaaS, how retention differs from loyalty, and tactics to help you boost both. What is customer retention?

Retention 95

Retention SaaS Customer Lifetime Value Education 95

Clouded Judgement

JANUARY 26, 2024

Net new ARR is something I track very closely for all of the private companies I work with, and it’s also an important metric to look at in public companies. ServiceNow has been investing, innovating and preparing for this wave for years, which is why we're catching it so early. The Gen AI investments are coming.

Cloud 161

Cloud Marketplace as a Service AI Subscription 161

Clouded Judgement

APRIL 5, 2024

.” For startups, their valuation follows an arc from pure hype based valuations (all on potential) in the earliest days when you’re just a team and and idea, to pure fundamental based valuations in the public markets when you’re given a valuation multiple against a financial metric like revenue or free cash flow.

Cloud 161

Cloud Scale Pricing Revenue 161

Clouded Judgement

DECEMBER 1, 2023

.” Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. I created this subset to show companies where FCF is a relevant valuation metric.

AWS 293

AWS Cloud AI Search Cost optimization & reporting 293

Clouded Judgement

DECEMBER 22, 2023

Wrapping all of this up, it appears that the market is either “pricing in” forward estimates coming up in 2024, or a big drop in rates (or both). Given most software companies are not profitable, or not generating meaningful FCF, it’s the only metric to compare the entire industry against.

Cloud 177

Cloud Subscription Payment Features Metrics 177

Clouded Judgement

APRIL 12, 2024

Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. I created this subset to show companies where FCF is a relevant valuation metric. Securities and Exchange Commission.

Cloud 141

Cloud Subscription Payment Features Revenue 141

Baremetrics

SEPTEMBER 26, 2021

There might not be an industry more addicted to its metrics than SaaS, and there is good reason for it. But how many SaaS financial metrics are you really tracking? Baremetrics gives you all the key metrics for your business, including MRR, ARR, LTV, total customers, and more. What are metrics? What are metrics?

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

User Pilot

OCTOBER 5, 2023

Our guide explores: What exactly CAC payback is Why you should be tracking it How to calculate the CAC payback period for your SaaS What other metrics you need to track How to reduce your CAC payback period We also look at how Userpilot can help you do the job. Let’s get right to it! What is CAC payback? Let’s break them all down.

SaaS Payments 104

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 104

User Pilot

JANUARY 9, 2023

Can personalized retention marketing grow your customer’s lifetime value and customer retention rate? This article considers all you need to know about retention marketing. How can a personalized experience help drive retention? What personalized customer retention strategies are open to you?

Customer Lifetime Value 97

Customer Lifetime Value Retention Marketing Scale 97

Clouded Judgement

DECEMBER 8, 2023

” Here’s a summary of the quarter in 5 charts: Quarterly Growth rates: Still decelerating, but not as quickly Net Retention: Down from historical averages, but starting to level off. I created this subset to show companies where FCF is a relevant valuation metric. Altimeter is an investment adviser registered with the U.S.

Cloud 161

Cloud Software Review Headcount Trends 161

Clouded Judgement

DECEMBER 29, 2023

vs 5.2x) Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. I created this subset to show companies where FCF is a relevant valuation metric. Altimeter is an investment adviser registered with the U.S.

Cloud 189

Cloud Software Review Subscription Payment Features 189

CustomerSuccessBox

MARCH 25, 2022

Then while considering customer acquisition cost (CAC) why miss out on customer retention cost (CRC)? They both are of equal significance and when the matter is to retain your loyal customers to have repeat business with you, this metric needs a bit of attention as well. About customer retention cost. Customer retention.

Retention 52

Retention Customer Lifetime Value Acquisition Churn 52

OPEXEngine

MAY 18, 2021

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. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS Metric #1 – Annual Recurring Revenue (ARR).

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

User Pilot

MARCH 25, 2024

Introduces key metrics that can affect your company’s value. An accurate valuation is necessary to secure the right price for the company or adequate funding without diluting its share value. To calculate the metric, add all 4 of them. As this investment is expensed in SDE/EBITDA, the metrics often equal zero.

SaaS 103

SaaS Customer Lifetime Value Acquisition Metrics 103

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., net retention and CAC payback). Q1 most likely represented the low.

Cloud 169

Cloud Software Benchmarks Retention 169

Clouded Judgement

NOVEMBER 24, 2023

Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 161

Cloud Subscription Payment Features Metrics 161

Blulogix

FEBRUARY 17, 2024

The Art of Flexibility: How to Master Dynamic Pricing Models in Subscription Billing By BluLogix Team Adapting to the Pulse of the Market for Maximized Revenue In today’s rapidly evolving digital marketplace, static pricing models are becoming a relic of the past.

Subscription 52

Subscription Payment Features Pricing Marketplace as a Service 52

Clouded Judgement

MARCH 8, 2024

Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 161

Cloud Revenue Subscription Payment Features 161

Clouded Judgement

JANUARY 12, 2024

There are also many late stage companies who will never get back to the valuation they raised at in 2021 (when thinking about an exit, not just the price a venture firm is willing to pay in a round…). I hope this post provides a bit of a cautionary tale of raising a mega round ahead of your metrics.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

Clouded Judgement

FEBRUARY 16, 2024

” From AWS (paraphrased): They said they expect the reaccleration they saw in Q4 to continue into 2024 2024 Estimate Updates One important metric I’m tracking this quarter is the change in 2024 estimates pre / post earnings. I created this subset to show companies where FCF is a relevant valuation metric.

Cloud 161

Cloud AWS Metrics Subscription 161

User Pilot

APRIL 17, 2024

If so, you need to invest in the right customer insight tools. Here’s how businesses collect these crucial pieces: Customer data monitoring : By tracking important metrics like the drop-off rate, adoption rate, etc., Analytic dashboards : Keep important metrics at your fingertips with predesigned dashboards.

AI Search 96

AI Search Social Media Cross-platform App Design (Application) Systems Review 96