SaaStr

OCTOBER 20, 2022

One thing that is clear is that public SaaS and Cloud stock prices are way down. In my own portfolio , more of my investments had a record month in October than a rough month. 32% are increasing investment in artificial intelligence (AI) and 24% in hyperautomation”, per Gartner. But is spending? I’m not so sure.

Forecasting 242

Forecasting Artificial Intelligence Software Business 242

SaaStr

APRIL 10, 2023

Others may seek to corner the SMB market. And as part of that push from my vantage point as Chief of Staff, I saw the need to continue investing in those early-stage startups so that we didn’t put all our eggs in one basket but that we continue to grow and nurture the companies that would go on to become great.”

Startup 206

Startup Scale SMB Venture Capital 206

SaaStr

FEBRUARY 24, 2021

80% SMB, 20% Enterprise. While Upwork has made inrounds into the enterprise, it remains squarely an SMB product. Upwork charges from 5%-20% of the service price (less the more you make through the platform), averaging out to 12%. Upwork only now is looking at making deeper investments in a dedicated enterprise salesforce.

Marketplace as a Service 264

Marketplace as a Service SMB Cloud Enterprise 264

SaaStr

DECEMBER 26, 2020

The startups I’m involved with that have happy SMB customers have much higher brand awareness around $10m in general than those that don’t. This makes the SMB leads worth a lot more than just their direct lifetime value. Don’t stay in SMB if your NPS there is 5 and your NPS in enterprise is 40+.

SMB 349

SMB Sales Hiring Marketing Enterprise 349

Clouded Judgement

APRIL 11, 2024

This has all resulted in the median stock price declining 5% YTD. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). Are forward estimates “de-risked.”

Cloud 169

Cloud Software Azure AWS 169

SaaStr

APRIL 4, 2023

This means you can raise prices, add modules, and expand, increasing the average revenue per customer account (ARPA). A Strategic Move Upmarket Another company CIPIO Partners invested in needed to make a strategic move. They had SMB positioning with an unfavorable LTV to CAC ratio. Otherwise, things will slow down.

Scale 231

Scale Strategy Scaling Outbound Sales Team 231

Clouded Judgement

MARCH 22, 2024

For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range. But this is changing - many categories are becoming commoditized leading to massive pricing pressure. Altimeter is an investment adviser registered with the U.S.

AI 183

AI Cloud Revenue Technical Advisors 183

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. New consumption pricing model has increased revenue 15% where rolled out. Done right, this sort of anti-SaaS pricing model can lead to significantly more revenue.

Scale 301

Scale Outsourced Development SMB Cloud 301

SaaStr

FEBRUARY 9, 2024

They had been building toward an SMB audience, so hiring 50 people in sales against a product that wasn’t ready for a specific audience would’ve been a mistake. So when’s the right time to invest more in sales and marketing when we’re all trying to become radically efficient ? Next, think about product maturity.

Scale 260

Scale Sales Hiring Sales Marketing 260

SaaStr

OCTOBER 30, 2021

Their CEO will join us at SaaSr Scale 2021 on December 15 to talk about using data to get to 10,000 SMB customers! I asked Aasif Osmany to share his learnings as a top-performing SMB VP of Sales, below. A mentor of mine suggested that I reframe my search to seek out companies that I would invest in, instead of the other way around.

Scale 260

Scale Sales Hiring Sales Underperforming Technical Team 260

SaaStr

JANUARY 24, 2024

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. From a process standpoint, you have to be ready to invest in Enterprise sales and build infrastructure to make sure sales can be successful. The result?

Scale 228

Scale Sales Hiring Scaling Revenue 228

SaaStr

NOVEMBER 22, 2020

All of this will help create value and return on investment capital. SMB to Enterprise, decide which you want to start with and toward which you want to move. Product is the best way to differentiate your company and includes your product’s features, quality, reliability, price, and distribution.

Scale 308

Scale Scaling Technical Review Systems Review 308

Tom Tunguz

JANUARY 25, 2019

In the SMB the distribution is more uniform. Price points in the SMB can vary widely, as can the success effort. The lower the price point, the greater the number of accounts managed to reach that $2-5M in ARR managed per CSM. There is an upper limit to the number of relationships a CSM can manage.

Management 207

Management SMB Enterprise Retention 207

SaaStr

OCTOBER 11, 2023

You don’t want to overwhelm SMB customers, and Monday made this a focus from day one. Measuring Usage Since Day One Since the beginning, monday.com built and has used a BI tool called Big Brain — a major investment for that size of company. This is how they optimized the product and pricing. How do you get over 100 for SMB?

Scale 161

Scale Sales Hiring Scaling Banking 161

User Pilot

AUGUST 6, 2023

Using customer relationship management (CRM) software to centralize your customer data is a worthwhile investment since it will prevent the formation of data silos and streamline the process of ensuring everyone has access to the information they need. Promotional emails are consistent with the information on your pricing pages.

Investment 97

Investment Banking Social Media Customer Lifetime Value 97

OPEXEngine

JANUARY 11, 2022

Consumption-based pricing is best used when you can accurately and easily break down your service offering into small, digestible units. Many companies in the technology industry are moving toward “pay for what you use” consumption-based pricing models. Four pricing models. Uncommitted contracts. Challenges and shifts.

Pricing 52

Pricing Payment Solutions Outsourced Development Payment Features 52

Clouded Judgement

DECEMBER 21, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

MARCH 8, 2024

With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? So we asked the expert, Sandhya Hegde, General Partner at Unusual Ventures to share her best practices and trends for pricing and packaging AI products. Why is pricing so tricky?

AI 197

AI Artificial Intelligence Pricing SaaS 197

SaaStr

AUGUST 7, 2023

Then the Boom happened, and everyone could justify insane investments, and it warped everything. That works for a hyper-SMB model. The One Metric Only Founders Can Own — Customer Centricity Folks have been under pressure, and a lot of shenanigans and borderline unethical price increases and behaviors are happening. The takeaway?

Metrics 195

Metrics SaaS Sales Hiring Finance 195

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. Contracted expansion revenue i.e. add-ons or upgrades that affect the annual subscription price of the customer should be included. . Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Clouded Judgement

SEPTEMBER 12, 2023

For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). What I’ve shown below is the market-adjusted stock price reaction.

Cloud 169

Cloud Software Benchmarks Retention 169

SaaStr

AUGUST 30, 2023

Many investment banker pitches say that everyone is number one at something. You might not be DocuSign, but for SMBs in France in retail, you are number one. You can filter your search by industry, whether you’re SMB, mid-market, or Enterprise, etc. They have privacy, security, vendor transitions, and acquisition support.

AI Search 200

AI Search AI ChatGPT Software Review 200

SaaStr

JANUARY 12, 2022

Another top mistake SMB folks make trying to sell enterprise. 5M in ARR b/c we were too small a co and compliance dept blocked renewal (shoulda raised price I guess…) ” — Jared Hansen, CEO Thrilling Foods. Customers don’t want to leave after investing so much time in you, no matter how much they gripe.

CTO Hire 277

CTO Hire Sales Hiring New CTO CTO 277

ChurnZero

JUNE 2, 2021

Now we’re seeing numerous companies price 8 to 12, so it’s definitely jumped up a little bit. A [Rob]: That’s more of a question for the earlier stage investing in the public market. Price earnings doesn’t work. Is the bar across the same for a SMB-focused company versus an enterprise-focused company?

Benchmarks 98

Benchmarks B2B SMB SaaS 98

Clouded Judgement

JUNE 9, 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. Revenue multiples are a shorthand valuation framework.

Trends 130

Trends Cloud Azure AWS 130

Clouded Judgement

JUNE 2, 2023

” From Okta: “We're seeing increased macro headwinds on our business, most notably with new business across SMB and enterprise. While not entirely new, the impact from these factors was more pronounced in Q1.” These impacts were felt in varying degrees on a global basis. Revenue multiples are a shorthand valuation framework.

Cloud 130

Cloud Trends SMB Subscription 130

Clouded Judgement

APRIL 12, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

JUNE 20, 2023

The market is clearly pricing in lower rates + reacceleration of growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com).

Cloud 161

Cloud Software Benchmarks Scale 161

SaaStr

MAY 24, 2019

* How does Andrew advise founders on the question of whether to start in enterprise or SMB? What are the benefits of starting in SMB? How does the product and what you invest in proactively need to change as you move into enterprise? I had Jason VandeBoom of ActiveCampaign on the show, and he said SMB first works.

Sales Hiring 143

Sales Hiring Scale SMB Sales Recruiting 143

Tom Tunguz

JUNE 12, 2014

To answer those questions, I’ve pulled together data from a basket of 46 publicly traded SaaS/Cloud companies and segmented them based on their average annual customer value (ACV) into three buckets: SMB ( =$10k to $100k). The median SMB SaaS startup spends significantly less on sales and marketing through year 4 of their lives.

Startup 100

Startup SMB Sales Hiring Acquisition 100

Tom Tunguz

AUGUST 26, 2014

HubSpot’s target customer base are SMBs and with this price point, it’s possible to support a profitable inside sales model if the team is very efficient. HubSpot is the second fastest SMB SaaS company to IPO yet, achieving the mark within 8 years. Only WIX, CTCT and RNG had smaller figures of $86, $265 and $352.

Benchmarks 108

Benchmarks SMB Metrics SaaS 108

Clouded Judgement

DECEMBER 20, 2022

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 130

Cloud Software Review Software Benchmarks 130

SaaStock

JANUARY 25, 2019

Omie main goal is to bridge the efficiency gap in Brazilian SMB, helping customers to be more prosperous. Omie is the only SaaS company figuring among 100 fastest growing SMB in Brazil, according to Deloitte Consulting, ranking #3. from Astella Investimentos, Spectra Investments and others. CEO : Marcelo Lombardo.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

Neil Patel

DECEMBER 10, 2020

Or are you being proactive and investing in maintaining a good one? Your business’s size can also dictate the amount you’ll want to invest in ORM services. For pricing, you’ll have to contact them directly to get a quote. As an individual or SMB, you might be nervous about investing money into an ORM. Conclusion.

Management 145

Management Outsourcing Services Social Media Sales Hiring 145

User Pilot

SEPTEMBER 19, 2023

Product-led growth may be a bit of a buzzword, but achieving no-code growth is particularly important for SaaS companies with low ACV, freemium models and generally those in the SMB sector. It’s essentially free revenue from your existing user base, which is particularly important when your customers’ LTV is around $150 in total.

SMB 52

SMB Onboarding Mobile Engagement 52

Sales Hacker

FEBRUARY 13, 2020

When you are selling to SMB and MM, you can get away with fairly lean marketing. RELATED: From SMB to Enterprise: A 2-Step Strategy to Boost Adoption & Growth. Make no mistake, this is a long way from the SMB sales motion! Customer and channel partnerships. Sales strategy. Your messaging may be focused on only one persona.

Sales Hiring 71

Sales Hiring Enterprise Technical Review SMB 71

OpenView Labs

APRIL 27, 2021

Above: Logz.io’s pricing page. It’s hard to make the case to invest engineering resources on a self-service model when 90% of your ARR comes from large enterprise customers whose use cases and requirements are too complex for a fully touchless purchase. hasn’t just attracted very small, SMB customers.

Scale 67

Scale Outsourced Development Enterprise Pricing 67