ChurnZero

JULY 8, 2022

Oh, by the way, what’s your customer retention?” It was clear that, barring any wildly outlandish figures, customer retention wasn’t a dealbreaker in their decision to invest. Net revenue retention (NRR) is taking center stage as the qualifying metric for determining the health of a SaaS business.

Technical Review 98

Technical Review Software Review Retention Metrics 98

SaaStr

APRIL 19, 2024

He’s invested in startups as a VC since 2013 and has 10x his fund. EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. The Adobes, Microsofts, and Intuits made $1M of revenue per employee. You Want One-Third of Your Revenue Outside the U.S.

Engineering 267

Engineering Business Model Pricing Scaling 267

The SaaS CFO

JUNE 13, 2021

Recurring revenue businesses have become the stars of the investment world. Investors love stable, recurring revenue streams. Valuations are tied to the health of our recurring revenue. But how do we measure the health of our recurring revenue? We use gross dollar retention (GDR) and net dollar retention (NDR).

Retention 52

Retention Revenue SaaS Investment 52

User Pilot

NOVEMBER 29, 2023

Looks like it’s time to call in a retention specialist. A dynamic retention specialist will implement proactive strategies to improve the customer experience and increase loyalty, thus improving customer retention. Measuring KPIs to gauge the success of retention efforts. What is a retention specialist?

Retention 90

Retention Customer Lifetime Value Churn Outsourced Development 90

User Pilot

JANUARY 19, 2023

Looking to improve your retention rates by reducing customer retention costs? Especially if you don’t know how to invest your money the right way. This is why it’s critical to understand retention costs and how to reduce them. In this article, we’ll explore customer retention costs.

Retention 89

Retention Customer Lifetime Value Onboarding Acquisition 89

Chargebee

DECEMBER 12, 2023

Some of us have heard/read/believed (even before 2023) that retaining customers delivers better ROI for our invested capital than spending additional money to acquire new customers. We are all entering an era of customer retention wherein retaining customers longer than peers is a competitive advantage.

Retention 52

Retention Churn Payments Management 52

SaaStr

SEPTEMBER 2, 2023

. “Higher growth is generally associated with higher retention and vice versa. The higher a company’s retention, the easier it is to grow, as the company doesn’t have to replace as much lost revenue. T he impact of retention is also cumulative as it repeats and expands on itself year after year.

Startup 270

Startup SaaS SMB Banking 270

SaaStr

JULY 13, 2022

Co-founder and CEO of Insider , Hande Cilingir, talks about what it takes to write a successful revenue growth story. However, the revenue forecast accuracy and the realization of that revenue each month are more important. Or the revenue their business will generate by month-end. Mistake 1: Not accepting your mistakes.

Scale 241

Scale Sales Hiring Revenue Marketplace as a Service 241

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 Retention 196

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

Clouded Judgement

APRIL 11, 2024

net retention and CAC payback). 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. Q4 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q4 starting with revenue.

Cloud 177

Cloud Software Azure AWS 177

ChurnZero

MAY 6, 2022

He also discusses how the market’s perception of net revenue retention has shifted over the last decade and what companies can do to increase this red-hot metric. There was the realization that […] net revenue retention is the most important metric you can have and you better focus on that.”. OK, that’s great.

Retention 98

Retention Revenue Entrepreneurship B2C 98

Clouded Judgement

MAY 3, 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. Revenue multiples are a shorthand valuation framework. Top 5 Median: 17.5x

Cost optimization & reporting 183

Cost optimization & reporting Cloud Software Azure 183

Mucker Capital

JANUARY 9, 2024

In this Mucker Growth session, Julius Lai from ArtShare d iscusses customer retention, which is often overlooked but essential for startups facing growth challenges. Customer retention is often considered a complex puzzle, but it can become more manageable when one comprehends the wealth of customer data available.

Retention 52

Retention B2C Scale Acquisition 52

User Pilot

DECEMBER 23, 2023

New user retention is essential for product success. It also explores: The difference between retention and churn The importance of tracking retention Various stages of user retention How to measure it effectively What retention metrics to track, and Tried and tested strategies to increase user retention.

Retention 82

Retention Customer Lifetime Value Social Media Churn 82

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

Clouded Judgement

APRIL 26, 2024

Azure doesn’t disclose exact Azure quarterly revenue (they disclose growth rate in absolute terms and in constant currency), but there are good estimations. So the overall Azure quarterly revenue figure is already not entirely spot on. We continue to bring capacity online as we scale our AI investments with growing demand.

Azure 177

Azure Cloud Software AI 177

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!

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

SaaStr

SEPTEMBER 3, 2023

Recurring software revenue is now recognized as a great way to generate tons of cash for investors,” says Gerety. Do public markets understand recurring revenue and SaaS models?” Fast forward, and Box is over $1B in revenue. The magic of a SaaS model is: Very high logo retention. But that wasn’t always the case.

Sales Hiring 247

Sales Hiring Headcount Finance Technical Review 247

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

JANUARY 27, 2024

Typically support consumes about perhaps 5%-7% of your revenue at scale (excluding customer success) in most SaaS models. It’s your top marketing and customer retention investment. Dear SaaStr: What is The Average Ratio of Support Staff to Customer Count in SaaS? Make sure the phone is picked up by ring #3.

Azure 241

Azure AWS SaaS Customer Success 241

SaaStr

JANUARY 5, 2024

12,000 customers, very high net review retention (NRR) even with SMB customers. Why is Jason Worried for The First Time About SaaS: We are trading at 6x revenues in the public markets. Don’t do the investment. If you do not know what to do, just invest more in your best. Growing 40-50% cashflow neutral.

SMB 314

SMB SaaS AI Software Review 314

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. Revenue multiples are a shorthand valuation framework.

Cloud 161

Cloud Software Review Subscription Payment Features 161

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

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. 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.

Scale 260

Scale Cloud Scaling Pricing 260

Intercom, Inc.

JULY 2, 2020

For Pam, it all stems from a long-held belief that investing in the customer’s success will chart a direct path to the company’s. In her own words , “When you take care of your customers, the revenue comes.” The post How Zapier supports 3 million users by investing in customer outcomes appeared first on Inside Intercom.

Outsourcing Services 253

Outsourcing Services Investment Underperforming Technical Team Outsourced Development 253

ChurnZero

OCTOBER 1, 2022

Organizations invest in MQL and SQL processes without fail. You’re directing them away from what is the most important which really is value and dollars that might support the customer getting value, and increasing that investment so the customer can have value. But another method is potential revenue to come in the door.

Scale 97

Scale Customer Success Revenue Retention 97

Blulogix

MARCH 21, 2024

By BluLogix Team Mastering the Art of Complex B2B Recurring and Subscription Billing: Elevating Customer Retention in B2B Subscriptions For B2B subscriptions, customer retention is a pivotal factor underpinning the long-term success and sustainability of businesses.

B2B 52

B2B Subscription Payment Features Retention 52

ChurnZero

NOVEMBER 11, 2022

1: Customer Success teams are driving revenue and earning more influence. to the chief revenue officer—all indicating that Customer Success teams are revenue drivers. In companies with $500M or more in revenue, one-third (30.3%) of CS leaders have a place in the C-suite. The top metrics in CS are all revenue metrics.

Leadership 98

Leadership Trends Customer Success Investment 98

Sales Hacker

JANUARY 20, 2022

Strong sales reps are the lifeblood of your business and how you choose to invest in them matters. That’s when an investment in sales coaching comes in. Sales coaches become better leaders, and reps become more invested in their jobs. It’s a win/win situation. In a recent productivity predictor , employees are 1.2x

Sales Recruiting 98

Sales Recruiting Scale Retention Sales 98

SaaStr

JANUARY 21, 2022

Dorian Stone , Head of Organizations Revenue at Grammarly, is here to share lessons from his experience of scaling the company from consumer to SMB to Enterprise to help you steer your expansion efforts in the right direction. When Dorian stepped into his current role, they promised the board a strong growth on the revenue line.

Scale 224

Scale SMB Enterprise Sales Hiring 224

SaaStr

JANUARY 12, 2024

We still want to drive retention and growth and make money. No one would disagree that retention and expansion are important. Eventually, you can build a model to show you can create sustainable value in a company that’s not just based on a revenue multiple. This chart says never stop investing in customer success for real.

Sales Hiring 266

Sales Hiring Customer Success Scale AI 266

Tom Tunguz

APRIL 1, 2024

At $784m in ARR, growing 47% with 130% net revenue retention across 6100 customers, the company should be one of top 10 fastest growing software companies alongside Klaviyo, ZScaler, & Crowdstrike - in ARR terms. But overall revenue is growing 4.5% How can ARR grow so quickly while overall revenue is much slower?

Data 194

Data Subscription Payment Features Cloud 194

Totango

JUNE 15, 2022

All companies are going through the exercise of evaluating their investments, deciding what to cut and what to keep, what strategies to use, and simply, how to weather the storm. Customer retention is the lifeblood of recurring revenue enterprises, no matter what the external economic circumstances may be.

Customer Success 101

Customer Success Investment Acquisition Communication 101

Chart Mogul

SEPTEMBER 6, 2023

You’re likely tracking all your global metrics to keep apprised of your business’ performance – ARR, churn, LTV, retention rates, etc. Segmentation allows you to peel the onion layer by layer to … You’re likely tracking all your global metrics to keep apprised of your business’ performance – ARR, churn, LTV, retention rates, etc.

Revenue 52

Revenue Churn Pricing Operational efficiency. 52

Clouded Judgement

APRIL 19, 2024

NTM revenue multiple. Their GAAP revenue grew 5% in 2023, and 29% in Q4 ‘23 YoY. For context, full year GAAP revenue in 2023 was $628m. I lay out all of these numbers to hopefully portray that the business is growing much faster than the 5% 2023 revenue growth would suggest. Overall Stats: Overall Median: 5.7x

Cloud 141

Cloud Scale Subscription Payment Features 141

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. As for internal data, on a high level, you should be consistently monitoring your net retention rate, bookings, and average deal size. I’ve also expanded on some of the strategies we discussed.

Scale 116

Scale Revenue Sales Compensation 116