SaaStr

JANUARY 24, 2024

Solving High Volume, Low Conversion at Lattice Dini Mehta joined Lattice at $3M in revenue when it had just 10 people in seat for Go-To-Market and 7 salespeople. From an R&D perspective, they invested in what they called vertical solutions to support those new use cases. So, Calendly decided to invest in going Enterprise.

Scale 228

Scale Sales Hiring Scaling Revenue 228

SaaStr

JANUARY 6, 2021

Q: I run a bootstrapped software company and our biggest customer (60% of our revenue) has offered on several occasions to invest in the company. Taking an investment from your largest customer certainly will complicate things. Rarely keep investing after the initial investment. But a VC investment is.

Investment 277

Investment Software Review Acquisition Pricing 277

SaaStr

JULY 13, 2022

Co-founder and CEO of Insider , Hande Cilingir, talks about what it takes to write a successful revenue growth story. Contract processes, packaging, and pricing might change. However, the revenue forecast accuracy and the realization of that revenue each month are more important. Mistake 1: Not accepting your mistakes.

Scale 221

Scale Sales Hiring Revenue Marketplace as a Service 221

SaaStr

APRIL 17, 2024

But they are ar $780,000,000+ in ARR, with an 86 NPS and strong revenue growth at 29% overall and 49% in subscriptions (yes, it’s confusing). But it’s decided to keep investing heavily in growth. 68% of Revenue in U.S., Is this the new bar to IPO in SaaS? 500m+ ARR, with ~50% growth? 5 Interesting Learnings: #1.

Scale 162

Scale Pricing Scaling Cloud 162

Buffer Resources

FEBRUARY 28, 2024

And you don’t get “business” status without understanding pricing. So, together with creator sponsorships expert Justin Moore , who helps creators negotiate partnerships through Creator Wizard , we put together this resource on how to figure out your pricing as a creator.

Pricing 95

Pricing Social Media Consulting Branding 95

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 208

Pricing Scale Retention AI 208

FastSpring

SEPTEMBER 16, 2022

But what about pricing? When FastSpring’s Chief Product Officer Kurt Smith worked with growth-stage to Fortune 100 companies at Accel-KKR, he consistently saw pricing as one of the most essential growth levers they employed to meet their next revenue goal. Why You Shouldn’t Trust How Your Competitor’s Price.

Pricing 110

Pricing Payment Solutions Payment Services SaaS Payments 110

SaaStr

MARCH 27, 2024

Revenue Growth is Up Just 24%. HubSpot’s revenue growth of 24% (21% in constant currency) is basically equal to its net new customer count. Despite raising prices and selling more products, HubSpot ACV is basically flat at $11,365. Clearly, even SMBs are working to moderate spend, even as vendors increase pricing.

Scale 242

Scale Cloud Pricing Scaling 242

SaaStr

DECEMBER 30, 2022

DigitalOcean has done that and grown beyond $150M in revenue in Q3 2022. Cliff Bockard, Senior Vice President of Revenue at DigitalOcean, joined us at SaaStr Scale to discuss how businesses can serve SMBs and still bring in large numbers of revenue. . Market understanding. SMBs have restricted budgets. Key takeaways.

Scale 201

Scale Scaling Revenue Enterprise 201

Clouded Judgement

MARCH 29, 2024

Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. EV / NTM Rev / NTM Growth The below chart shows the EV / NTM revenue multiple divided by NTM consensus growth expectations. Overall Stats: Overall Median: 6.4x

Cloud 278

Cloud Forecasting Subscription Payment Features 278

Intercom, Inc.

OCTOBER 7, 2020

“Support isn’t just a cost center, but a strategic investment that increases customer retention and reduces churn” Indeed, if you look at the broader financial models of customer support, you’ll see that support isn’t just a cost center, but a strategic investment that increases customer retention and reduces churn.

Customer Support 196

Customer Support Investment Scale Churn 196

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Results in an Increase in Revenue 2. Raise Prices for New Customers 2.

Pricing 111

Pricing SaaS Scale Customer Lifetime Value 111

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. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue.

Cloud 311

Cloud AI Investment Metrics 311

SaaStr

FEBRUARY 17, 2023

While the allure of customer acquisition can pull a founder’s attention, it’s equally important to dedicate resources to fighting churn and expanding revenue from existing customers. They discuss how Fox helped build a churn-fighting, upselling, and cross-selling machine that continues to generate revenue. Something missing?

Retention 212

Retention Revenue Startup Sales Hiring 212

FastSpring

DECEMBER 16, 2022

One popular solution for managing and automating parts of the sales process is by using CPQ (Configure, Price, Quote) Software. CPQ (Configure Price Quote) is a type of sales software that allows sales reps to quickly and easily configure products and services, generate accurate pricing, and create quotes to be sent to customers.

Payment Services 138

Payment Services Payment Solutions Pricing Payments 138

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. This list goes on.

Cloud 161

Cloud Scale Pricing Revenue 161

Blulogix

FEBRUARY 9, 2024

How Recurring Revenue Sustains Modern Businesses Amidst Uncertainty By BluLogix Team The Vital Role of Recurring Revenue In an era marked by rapid technological advancements and shifting consumer preferences, recurring revenue models have become the lifeline for modern businesses.

Revenue 52

Revenue Business compliance B2B 52

SaaStr

SEPTEMBER 19, 2023

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. You don’t want to be there.

Business Model 248

Business Model SaaS Payments Payments Headcount 248

Clouded Judgement

APRIL 11, 2024

This has all resulted in the median stock price declining 5% YTD. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud 169

Cloud Software Azure AWS 169

User Pilot

SEPTEMBER 20, 2023

Working out pricing for a SaaS can be difficult, so consider using a cost-plus pricing method. TL;DR Cost-plus pricing, or markup pricing, is where you add a set to a product’s unit cost, often overlooking competitive market prices. Justifying price increases is easier when adopting a cost plus strategy.

Pricing 105

Pricing Software Review Market Research Acquisition 105

SaaStr

OCTOBER 25, 2023

Leveling Up PLG to Accelerate SMB Customers, Including More Attention to Onboarding I love seeing this, it can seem hard to invest heavily in small customers, but if you don’t especially invest in onboarding, that’s a big shame. Soon, They Will Be The Majority of Revenue. But good to learn from. $50k Wow what a run!

SMB 249

SMB AI Onboarding Cloud 249

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

FastSpring

AUGUST 3, 2022

I spoke with FastSpring’s former VP of Revenue Operations about this, and you can stream our entire conversation at the bottom of this piece. This is why it’s so important to be able to test the ROI of any investment you’re making as quickly as possible. I’ve also expanded on some of the strategies we discussed. Learn more here.

Scale 108

Scale Revenue Sales Compensation 108

Tom Tunguz

JANUARY 16, 2018

Last week, I shared a presentation with an executive team at a large public SaaS company on everything I’ve learned about pricing. Here’s a summary of the frameworks and theory that I’ve aggregated over a decade of investing in startups. Why do we set prices? There are four components to pricing: 1.

Pricing 226

Pricing Market Research Interviewing Product Marketing 226

SaaStr

MARCH 4, 2024

We don’t need it, but at that price — it’s basically free” 2024: “Free? Raising a high-priced round, just to raise it Raising a lot of extra money on SAFEs Raising too much “non-dilutive” capital Used right, these tools all can work well. A High Priced Round Puts a Ton of Pressure On The Exit and Growth Rate Raise $2m, $4m, $10m?

Finance 224

Finance Payment Solutions Payments Pricing 224

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

SaaStr

JUNE 29, 2023

As buyers grapple with expanding technology, higher prices, and a need for efficiency, SaaS companies need to deliver what their audience is looking for to win in the market. AI-Powered Tools: AI-related purchases in Q1: Made up 41% of new investments in Q1. But there is even more nuance to the reason behind the price hike.

VP of Engineering 241

VP of Engineering Trends Cybersecurity Sales Hiring 241

Baremetrics

SEPTEMBER 9, 2021

When discussing the financial metrics for a SaaS company, revenue vs. profit is among the most common comparisons encountered. When a SaaS product or service has been developed, tracking the ROI (return on investment) involves always keeping revenue vs. profit at the top of mind. What is revenue? What is revenue?

Payments 103

Payments Revenue Payment Services SaaS Payments 103

Blulogix

FEBRUARY 24, 2024

Revolutionizing Revenue: What is the Role of AI and Machine Learning in Agile Monetization? This blog post delves into how AI and ML are shaping the future of agile monetization, enhancing the way businesses approach billing, customer engagement, and revenue optimization.

Artificial Intelligence 52

Artificial Intelligence Machine Learning AI Search AI 52

SaaStr

DECEMBER 10, 2023

This year, many companies, including Gong, have been focused on how to optimize and drive value with existing tech stack investments, rather than adding new tools. Last week we had a great one with Jack Moberger, Director of Enablement at Algolia, check it out here. This week we have Udi Ledergor, Chief Evangelist at Gong! #1.

Leadership 309

Leadership B2B Branding Revenue 309

Chart Mogul

SEPTEMBER 6, 2023

How does my PLG motion compare to Sales-led in terms of revenue or retention? Segmentation informs strategy Now that you’ve got the power to discover these insights, you can use them to inform your strategy and reach your next revenue targets. We can discuss the pricing with customers and dig into the churn reasons. Which plan?

Revenue 52

Revenue Churn Pricing Operational efficiency. 52

User Pilot

MARCH 20, 2024

This article will go through 13 software monetization solutions to help your software product create great revenue streams and drive product growth. TL;DR Software monetization helps generate revenue using various new business models to reinvest in development and enhancements.

Software 59

Software Revenue Strategy Advertising 59

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. What is NRR? Talk about efficient growth! Decrease Contraction.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

Clouded Judgement

APRIL 12, 2024

On top of that, the median NTM revenue multiple has only fell 1% from the start of the year to today. 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.

Cloud 141

Cloud Subscription Payment Features Revenue 141

Blulogix

NOVEMBER 8, 2023

Accelerating Subscription Business Growth with Usage-Based Pricing By BluLogix Team The subscription business model has long been recognized as a steady path to recurring revenue and business growth. The Evolution of Pricing Traditionally, subscription businesses offered fixed-rate plans.

Subscription 52

Subscription Payment Features Pricing Business 52

Clouded Judgement

JANUARY 26, 2024

Many public software companies don’t report ARR, so I’ll take the quarterly subscription revenue and multiply it by 4 to approximate ARR. 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. Top 5 Median: 17.7x

Cloud 161

Cloud Marketplace as a Service AI Subscription 161

SaaStr

JANUARY 4, 2024

In 2022, revenue growth held up for many leaders, but share prices and multiples cratered. per Jamin Ball’s great summary below The Top 10 in SaaS saw their stock price up 136% on average! And even as growth slowed, the best were rewarded with huge jumps in their share prices. So 2023 was a weird year. And 2023?

Startup 174

Startup SaaS AI Pricing 174